How Much Does An Isle of Man Company Cost?

If you’re looking for the short answer of how much an Isle of Man company costs then the short answer is very little in the grand scheme of things!  For example a”1931″ company costs £100 to incorporate within 48 hours, £250 for 2 hour incorporation and £500 for a whilst you wait service.  If you want a “2006” company then guess what, the fees are the same!  Amazing.  Who would have thought that you could have your Isle of Man company for so little?  The truth is though there is a little bit more to it than that.

Isle of Man CompanyThe incorporation fee is one off but on top of that you’ll need to submit an annual return, the cost for filing that is £380 per year, assuming you are filing on time.  It can go up to £630 if you’re very late.  Of course all this is assuming you are based on the Isle of Man and are happy to do the paperwork yourself, this is not the case for 99%+ of Manx companies.  In most cases you’re going to have a CSP (Corporate Service Provider) involved, you’ll definitely need 1 as your registered agent for a 2006 Company, and this is where the costs can start to add up.

Fees for being a director, registered office fees, establishing bank account fees, fees for managing the company, fees for accounts submissions, fees for any and all sorts of administration you can imagine, this is what CSPs do and to be honest a LOT of clients pay them without a second thought.  The efficiency savings from operating offshore can be so large that for many structures the fees incurred are almost irrelevant.  It’s a shame because there are Isle of Man CSPs who (the worst kept secret on the island) are in most peoples view completely taking the mickey when it comes to fees and charging, big fancy offices do not get paid for by providing your “long term” clients with the best deal.

How Does A CSP Charge?

Generally speaking there are 2 charging methods in place.  The first is a fixed fee.  This is paid annually usually and will involve a list of “in-scope” items that are included.  When your CSP does work “in-scope” you are not charged directly for that work, instead it is included in your fixed fee.  Preparing and submitting your annual return could be an in-scope task.  For structures that require little maintenance in can be an easy way for a CSP to make it “worth their while”.  Fixed fees were all the rage years back where they were a fantastic marketing tool for attracting new business.  These days they tend to be used to ensure a “minimum payment” from clients that otherwise wouldn’t rack up the fees.

The second method of charging, think lawyer.  Every unit of time is charged for at a given rate.  The rates generally vary depending on the seniority of the person within the CSP doing the work, not the work itself.  Again think lawyer, think of the hourly rate a newly qualified lawyer may charge compared to a partner.  In terms of a CSP generally you are looking at every e-mail, phone call, task being chargeable.  How much will a CSP charge me for their time?  How long is a piece of string?  The regulation involved with the CSP industry on the Isle of Man in no way regulates charges, value for money or anything like that.  A CSP is free to charge out their staff’s time as they see fit, regardless of qualification or lack off.  As a practical example their are several CSPs on the Isle of Man who will charge out staff with NO professional qualifications at over £200 an hour (completely within their rights to do so)! Of course the staff don’t receive anything like that but that is the charge out rate.  There are also other CSPs who will charge out directors at less than that!  We know some structures that have moved, enjoyed better service and seen their fees massively cut and the new CSP has still considered them a really valuable client.  It absolutely pays to shop around.  The insurance industry comparison also holds up, just like your premiums if you engage with some CSPs over a long period expect their fees to start going up for what seems like very little reason.  Owners and directors can put huge pressure on their fee earners, with high utilisation targets (the percentage time spend on chargeable work) and billable hours being thrown around at structures and clients that are known to be able to take it.  Again shop around, ask how much an incorporation costs (you know the government fee from above) and compare from several providers, you may be amazed at the difference.  Experiencing inflation busting fee rises?  Ask why.

Can we judge value for money?  Absolutely not.  Your regular large expensive CSP could be going way above and beyond for the high fees they charge, that’s a personal decision to be made on a client by client basis.  Risk also has to be factored in.  Are you happy?  At the other end of the scale your regular CSP could also be under some form off internal/external special measures or audit without you even knowing meaning a degraded service.  If you notice a sudden drop off in turn around times, ask the question, is there something going on in the background, are they staff well paid and happy, are the majority professionally qualified in the services they are providing you?  Why are payments slow?  Why do things take so long to get signed off?  At the end of the day big does not equal bad and small does not equal good.  It’s up to you to be happy with the value for money you are receiving, but without comparing how will you know?

There are several CSPs on the Isle of Man that we know provide an excellent affordable service, where each client is valued, where all staff are encouraged to attain professional qualifications (STEP, ICSA etc).  They can make owning an Isle of Man company an affordable reality for most businesses, structures and individual clients.  Happy clients, happy staff.  Affordable Isle of Man company.

How Do I Get Started With My Isle of Man Company?

IF we were going to setup an Isle of Man company there are a handful of CSPs we’d consider using to help, based on personal experience.  To have one of these contact you just fill in the form below, remember their is no obligation here, it’s just to get the lines of communication open and the ball rolling with any questions you may have:-

    See How Much You Could Save With An Isle of Man CSP

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