Isle of Man Companies

Isle of Man Companies

Located equidistant from Britain and Ireland this sophisticated island is 33 miles (52k) long and 13 miles (22k) wide.

The Isle of Man is a UK Crown Dependency that, through its ancient parliament, Tynwald, enjoys a high degree of domestic legislative and political autonomy. The UK is responsible for the conduct of the external relations and defence of the island and the Queen, as Lord of Mann, is Head of State. The island’s taxation system is quite separate from that of its neighbour and enjoys complete independence from the UK on matters of direct taxation for individuals and companies resident in the Isle of Man.

The booming financial services industry has a reputation for being a premier jurisdiction in terms of regulation, achieving a balance of offering a business-friendly environment whilst meeting international standards of financial supervision. Since November 2006, the Isle of Man has had two parallel mechanisms for establishing new companies. The traditional company established under legislation dating from 1931 – 2004 (the ‘1931 Company’) and the more modern version which is set up under the 2006 Companies Act (the ‘2006 Company’).

Benefits of the 1931 Company Benefits of the 2006 Company
 A traditional vehicle designed for trading purposes with checks and balances between directors and shareholders.  Modern legislation based on the British Virgin Islands model.
 Clear distinction between private and public companies. Due process for converting private to public company.  No distinction between private and public companies.
 Authorised share capital is a requirement for companies limited by shares.  The concept of authorised share capital has been eliminated. However, a level of share capital is required for the Memorandum and Articles and we suggest 10,000 shares of £1 each.
 The traditional concept of capital maintenance is used.  A company may make a distribution by any method provided a simple solvency test is applied.
 Minimum of 2 directors and corporate directors not permitted.  Minimum of 1 director and corporate director permitted subject to certain conditions.
 Company Secretary is mandatory.  Company Secretary is not mandatory.
 Full Accounts required; audit may be necessary and a detailed annual return.  Accounting records should be maintained; no audit required and less onerous annual return.
 Zero rate of corporate tax; no inheritance, capital gains or wealth taxes  Zero rate of corporate tax; no inheritance, capital gains wealth taxes