Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in the Isle of Man
The registration of a company in the Isle of Man may seem daunting and challenging. However, with the help of our vast experience and expertise, this will be a breeze. The Isle of Man is a self-governing country of the British Crown. It is situated in the Irish Sea between the UK and Ireland. Having a diversified economy with key sectors in manufacturing, insurance, finance and retail, this place is an ideal environment to start your business! The country is also considered a low-tax economy and does not have stamp duty, inheritance tax or wealth tax. In order to gain access to the business support ecosystem, it is important for businesses to register a company in the country.
What You Need
Firstly, to register a company in the Isle of Man, one needs to make sure that every aspect is in compliance with the Financial Supervision Commission (FSC), which is the governing body. Their roles include and are not limited to, being responsible for the Isle of Man Companies Registry, regulation and supervision of persons undertaking regulated activities which includes company incorporation services, management of the regulatory regime for the regulated activities and the oversight of persons responsible for the management, or affairs, of commercial entities.
First, choose which Companies Act you would like to register under.
- The Companies Act 2006
This is mostly used for international clients. This requires a financial service license holder to act as Registered Agent which makes the running cost more expensive.
- The Companies Act 1931
This is the most common act for local businesses but is also favoured by many international clients. It requires two directors but can be self-managed.
The two entities mentioned below are the most popular among business owners.
Limited Liability Company (LLC)
It is the most popular and very similar to a UK Limited Company, but with the added benefit of a 0% corporate tax rate.
- A minimum paid-up capital of £1 is required.
- Takes approximately 5 days to incorporate.
- Takes approximately 6 weeks to open a company bank account.
Private Limited Company (PLC)
This is most commonly used by foreign-owned non-resident clients.
- A minimum paid-up share capital of £1 is required.
- Requires two directors of any nationality.
- PLC Requires a minimum of 1 shareholder.
- Requires a registered office in the Isle of Man.
- Takes approximately one to five business days to incorporate.
These two (2) entities have a few aspects in common. There is no need for the Client to travel as physical presence is not required for incorporation. It is also not a requirement for there to be a resident shareholder or director. There is a zero-tax rate for almost all entities, excluding banking or insurance.
Why the Isle of Man
To the untrained eye, it may seem a little quiet and charming spot but to an experienced businessperson, they will see the potential in this quaint little island. The Government believes that to create a thriving business environment engaging with its stakeholders is the way to go!
It is a jurisdiction located geographically in the British Isles but with a separate government and identity. The Isle of Man is an established international business centre. The country has a good reputation, stable politics, low taxation and an established firm environment.
Besides that, the Isle of Man has a customs agreement with the UK which facilitates trade while still being legally separate from the UK and the EU. Forming a company in the Isle of Man can provide advantages especially if you are planning on setting up a company that is going to trade in other jurisdictions or hold investments. Another good reason to incorporate a company in the Isle of Man is if you wish to import and export goods in and out of the EU. It also forms part of the UK VAT area which makes it a great advantage with commercial property structures.
The process to register a company in the Isle of Man is quite simple when broken down but it can also be quite tedious and complicated. Should you require any assistance or services, we provide these services to ensure a smooth integration into the economy of the Isle of Man. Contact us for more information.