ISLE OF MAN

The Isle of Man is located in the Irish Sea equidistant from the Republic of Ireland, Scotland and England. It is a s elf-governing dependent territory of the Crown and is not part of the United Kingdom.

As a British Crown dependency, the ultimate responsibility for the Island's good government lies with the Crown and the UK Government does not legislate for the Island except with the specific consent of the Island's Government.

TYPE OF TRADING COMPANY

There are two types of trading vehicles generally used in the Isle of Man, namely the Private Limited Company and the Resident Limited Liability Company (LLC).  

The law is based on English Common Law and is set out in The Companies Act 1931 - 2004 and the Limited Liability Companies Act 1996.

PROCEDURE TO INCORPORATE

To incorporate a Private Limited Company the Memorandum and Articles of Association and a form disclosing the officers and the registered office are delivered to Companies House.

To register a Limited Liability Partnership a copy of the articles of organisation are lodged with the Registry.

RESTRICTIONS ON TRADING

Both a Private Limited Company and an LLC are not permitted to undertake the business of banking, insurance, assurance, reinsurance, fund management, asset management (other than the company's own assets) or any other activity that would suggest an association with the banking and insurance industries unless a licence is obtained.

POWERS OF COMPANY

An Isle of Man company has the same powers as a natural person.

LANGUAGE OF CORPORATE DOCUMENTATION

All the documentation is in English language although another language can be used but a full translation must be supplied.

NAME RESTRICTIONS

Both vehicles cannot register with any name that has already been incorporated in The Isle of Man, or is so similar to an existing name that it may cause confusion. Any name which in the opinion of the Registrar is considered undesirable, obscene or offensive or implies royal or government links will also be rejected.   Some names are sensitive such as Group and Holdings and require further justification and words with Trust, Trustee or Fiduciary require a greater authorised and issued share capital which must be paid up (£250,000).

COMPANY NAMES

Private Limited Companies must use the word Limited or Ltd at the end of the name and Limited Liability Companies must use Limited Liability Company or LLC as a suffix.

LANGUAGE

English.

REGISTERED OFFICE REQUIRED

A Private Limited Company must have its registered office in the Isle of Man and an LLC must appoint a registered agent in addition to having the registered office in the Isle of Man.

AUTHORISED and ISSUED SHARE CAPITAL

Private Limited Companies have a minimum authorised share capital of £2,000 or 2,000 in another currency. The minimum amount of shares to be issued is one of par value.

CLASSES OF SHARES

A Private Limited Company may have registered shares, preference shares, redeemable shares and shares with or without voting rights.

DISCLOSURE OF BENEFICIAL OWNERSHIP TO AUTHORITIES

There is no disclosure of the beneficial owner(s).

TAXATION

Private Limited Companies pay income tax at 0% and there is no withholding tax on payments of dividends to shareholders. However, companies that are in the business of banking, insurance or are connected with the investment in property in the Isle of Man pay corporation tax at a rate of 10% and a withholding tax at the same rate is imposed if the dividend is paid to a non resident individual or corporate body.

LLCs are taxed as a partnership. Therefore an LLC with no Isle of Man resident members or business in the Isle of Man is not taxed in the Isle of Man.

 
DOUBLE TAXATION AGREEMENTS

There is a limited treaty with the United Kingdom.

GOVERNMENT LICENCE FEES

When an LLC Company is set up a fee of £475 is paid. A further £475 is paid each year on the 6th April.

FINANCIAL STATEMENT REQUIREMENTS

There is no requirement to file audited financial statements anywhere but the company is required to keep financial records that are sufficient to show and explain the company's transactions and will at any time enable the financial position of the company to be determined with reasonable accuracy.   If these records are kept outside the Isle of Man they must be sent to the Registered Office every six months.

MEETINGS

Annual general meetings can be held anywhere in the world.

DIRECTORS

Private Limited Companies require two directors and they need not reside in the Isle of Man. Corporate bodies are not permitted. The Limited Liability Company may have a natural person or a corporate body as a Manager (no directors are appointed).

COMPANY SECRETARY

Private Limited Companies require a secretary who need not be local but must be a natural person.