Companies in the Isle of Man that provide financial services are required to obtain an adequate license from the Financial Services Authority. The company must satisfy the current licensing criteria both at the time of the licensing and during the period in which it performs the activity.
Our team of Isle of Man company formation agents can give you complete details about the licensing requirements and can help you apply for the needed permits, as needed.
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Financial services licensing in the Isle of Man
The list below highlights the key conditions under which companies are granted the financial license:
- Isle of Man presence: the license is only granted to those companies that have their place of management and control on the Island.
- Good activity record: the applicant must be able to show that he has successfully conducted the activity for which the license is requested; being part of a company that already performs the activity is one option or, in other cases, showing that he occupied a senior position in that respective business field.
- Adequate training: all of the employees who will be working for the Isle of Man company and will occupy management and control positions must be able to show that they are trained and able to do so.
- Specific requirements: in some cases, licensing can be subject to professional indemnity insurance cover and various other requirements, according to the particular class of license.
License application
Applicants must submit a completed license application form, the application fee, and an adequate business plan. The requirements may differ according to the type of financial activity undertaken. For example, crowdfunding platforms must be presented in a working test version.
According to law, certain types of activities or individuals who undertake certain functions may be exempt from licensing. This can apply when the activity is not regulated. One of our agents who specialize in offshore company formation in the Isle of Man can give you more details.
Depending on the activities they engage in, companies in the financial sector may not be subject to the tax neutrality applicable to businesses in other industries. Our accountants in the Isle of Man assist business owners with ongoing compliance for preparing financial statements, filing the annual return with the Companies Registry (when required by law), and other solutions.
Contact us for more information on the regulation of financial activities in this jurisdiction.