The Isle of Man is a small island located in the Irish Sea which gives foreign investors access to an independent territory which follows the laws and regulations of Great Britain. With strong connections with the UK, the Isle of Man, also known as Mann, offers a great investment environment in industries such as finance, insurance, and online gaming. Also, the Isle of Man is the 5th richest territory in the world based on its Gross Domestic Product per capita, according to the World Bank.
Foreign investors who want to open companies can choose between various structures which can be presented by our Isle of Man company formation agents.
The following video presented by our agents summarizes the advantages of opening an offshore company in the Isle of Man:
Types of companies available in the Isle of Man
Those who want to set up a company in the Isle of Man can choose between the limited liability company and the partnership, according to the Companies Act. However, there are other laws which provide for trusts and foundations which represent important tax planning tools in the Isle of Man.
One of the most sought types of companies in the Isle of Man is the offshore company which is suitable for various activities and offers many advantages. Offshore companies are governed by the International Business Act of 1994.
Investors can register their chosen type of company themselves or talk to one of our agents who provide corporate incorporation services. There are three types of company incorporation, differentiated by the time it needs to complete the registration. The standard incorporation takes place within 48 hours and will include a fee of 100 £. The two-hour incorporation is possible when the documents for registration are submitted before 2:30 pm during a business day. The fastest incorporation can take place while the applicants wait for the service to be completed and will cost more than the previous types. This very fast incorporation is possible when all of the documents are received before 4 pm on a business day.
The very fast incorporation procedure is an important advantage for investors. However, entrepreneurs must keep in mind that this is only possible when the applicant has paid the fees and has chosen a unique company name. Otherwise, the process will be longer when some of the steps need to be re-made.
Requirements to open an offshore company in the Isle of Man
The formation of an offshore in the Isle of Man implies the registration of a limited liability company. The following conditions must be fulfilled in order to open an offshore company in Isle of Man:
- choosing a company name which must end in Limited, Ltd., Public Limited Company, PLC.;
- appointing a company director, who must not necessarily be a resident;
- preparing the documents for incorporation;
- having a legal address in Isle of Man;
- opening a bank account in the Isle of Man.
Even if the offshore company is registered in the Isle of Man, its activities cannot be undertaken here. Our local advisors can assist businessmen who want to open non-resident Isle of Man bank accounts.
The company must file an annual return regardless or not of the company has recorded trading activities over the past year. The fees for annual return filings vary according to the type of company, are less for standard companies and higher for companies that are registered as charities. Penalties apply for failure to file this return and actions may be taken upon the company officers. In some situations, the company can be unregistered.
The company details can be changed after registration by filling in the appropriate forms. The registered office and the details of the directors and secretary can be changed (when they are appointed or resign). Certain fees apply for these changes and they are higher if more than three months pass between the time the date occurs and the date at which the change is registered.
Uses of an offshore company in the Isle of Man
Foreign investors who want to set up offshore companies in the Isle of Man must know that these entities are usually used for one of the following purposes:
- for trading activities with companies in EU countries;
Investors in the Isle of Man can appoint a nominated officer or a nominee director/shareholder. This is done in order to increase the level of confidentiality for the company’s beneficial owner, the shareholder who actually owns shares and receives the dividends. A condition to appoint a nominated officer is for his to be an Isle of Man resident. The officer will be the one to hold the relevant information on the beneficial owners. One of our Isle of Man company formation agents can give you more details about the requirements for appointing a nominee shareholder.
Reasons to open an offshore company in the Isle of Man
The Isle of Man offshore company offers many advantages, among which we mention the following:
- no taxes on certain activities;
- the accounts of an offshore are not subject to audits;
- no local director must be appointed;
- no annual shareholders’ meeting must be held;
- companies will have VAT numbers accepted in the EU.
For assistance in registering an offshore company in the Isle of Man, please contact us. You can also ask our Isle of Man company formation specialists on the other advantages offered by offshore companies.
Call us now at +44 203 287 0408to set up an appointment with our business consultants in the Isle of Man. Alternatively you can incorporate your company without traveling to the Isle of Man.
As a BridgeWest client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in the Isle of Man.