The Isle of Man has become a world renowned finance centre with a large number of support services in place. It is no wonder then that Isle of Man Company Formation is a hot topic, the Isle of Man offers a very friendly environment in which to do business which can result in large savings. For companies looking to expand their horizons into the middle east and even further afield then an Isle of Man company offers a very tax efficient way of doing this.
Advantages To Forming An Isle of Man Company
Zero Percent Corporate Tax – As long as your company is not a bank or insurance company (which are taxed at 10%) there is a zero rate of corporate tax on the Isle of Man
No Capital Gains Tax – There is no tax to be paid on capital gain derived from the sale of any holdings
No Inheritance Tax – Making it a very tax efficient way of owning property
No withholding tax is paid on dividends payable to shareholders.
The Isle of Man is an open and compliant place to do business with a AAA credit rating.
Isle of Man Companies
Legislation is in place for 2 different types of company formation on the Isle of Man. There is the old style company (A companies act 1931 company) and the newer more flexible company type (A companies act 2006 company). Certainly up until now the 1931 company seems to have been the company of choice for most individuals and many of the CSPs on the Isle of Man have much more experience in setting up and administering this type of Manx company.
Isle of Man 1931 Company Formation
In order to form a Companies Act 1931 company on the Isle of Man you will need 2 directors and 1 secretary. The directors must be “real” people and not corporate entities. The registered office must be on the Isle of Man. There are numerous CSPs on the Isle of Man that can help by providing professional directors and a registered office address as well as setting up and administrating the company for you. Those are the basics but if you like to see the full act then there is a copy of it online here:- Isle of Man Companies Act 1931
Isle of Man 2006 Company Formation
The main difference between the new Manx company vehicle and the old style Manx company is that the 2006 Legislation allows a company to only have 1 director. This director may also be a corporate entity. There are numerous other small changes but these only come into play in very specific circumstances hence the popularity of the older legislation. If you think you’d like to form a 2006 Company you’d be much better of speaking to a CSP before proceeding.
In terms of costs forming a company on the Isle of Man is relatively cheap, £190 will cover your incorporation fees for either type of company. However the paperwork can be relatively complex and it is strongly suggested that you take advantage of the many CSPs on the island who can supply everything you need to get your company up and running in the least amount of time with a minimal amount of fuss.
Comparison Of An Isle of Man 1931 Company And A 2006 New Company Vehicle
| Law: | Common | Common | |
| Minimum Gov Fees: | 0% – 10% | £250 | |
| Corporate Tax: | 0% – 10% | 0% – 10% | |
| Double Taxation Access: | Only UK | Only UK | |
| Directors Required : | 2 | 1 | |
| Directors Must Be Local: | No | No | |
| Public Records Available: | Yes | Optional | |
| Director/Shareholder Meetings To Be Held: | Anywhere | Anywhere | |
| Min Number Of Shareholders/Registered Members: | 1 | 1 | |
| Directors Made Public: | Yes | Optional | |
| Company Secretary Required: | Yes | Optional | |
| Accounts Must Be Prepared: | Yes | Yes | |
| Audit Required: | Yes – some exceptions apply | Yes | |
| Accounts Must Be Filed: | Yes | No, except in relation to tax | |
| Accounts Are Made Public: | No | No | |
| Annual Return Must Be Filed: | Yes | Yes | |
| Are Allowed To Change Domicile: | Yes | Yes |
Check Isle of Man Company Name Availability
If you’ve decided that a Manx company is right for you then the next step is to check that the company name you want is available, you can do that using this Isle of Man Company Name Check service.
Just in case you are looking for other jurisdiction company formation here are some alternative services for checking company name availability:-
Jersey – Jersey Company Formation Name Check
Guernsey – Guernsey Company Formation Name Check
UK – UK Company Formation Name Check
Hong Kong – Hong Kong Company Formation Name Check
Switzerland – Switzerland Company Formation Name Check
Singapore – Singapore Company Formation Name Check
How Do I Get Started With A Manx CSP?
For help with your Isle of Man company formation or any of those other jurisdictions mentioned above there are dozens of Manx CSPs to choose from. Some great, some good, some not so good! Having been involved in and around the industry for decades we have our own favourites that we know have provided world beating service on a consistent basis, the feedback we get from recommendations rarely falls short of superb. How do you get started? It can be as simple as a message using the form below, fill in your basic contact details and we’ll have one of the genuine good guys contact you to see if they can possibly help, guaranteed NO hard sell, over sell or other nonsense, just real practical advice from a respected IOM CSP.
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4 comments
Hello,
i would like to set up an IOM company for our e-commerce business.
French citizen, Hong Kong permanent resident.
i would like to have some advice also.
Please answer me fast
Thank you
You may want to have that chat in private with one of the recommended CSPs from this page.
Hallo, ich möchte eine Offshore Firma gründen mit einem Bankkonto in der Schweiz oder einem europäischen Land (evtl. Litauen, Holland? eines auf das die Finanz keinen Zugriff hat – wenn nicht möglich macht Vorschläge).
Wohnsitz Austria
Thanks for the comment but please use the contact form.