Isle of Man and Bermuda are known as offshore centers that offer advantages to investors who set up an offshore company. Our Isle of Man company formation agents describe the main advantages of opening an offshore company in both of these jurisdictions and also discuss the criteria that should be taken into consideration when choosing the jurisdiction where the offshore company will be based.
Entrepreneurs who wish to know more about the Isle of Man company registration process can reach out to one of our agents. We can provide complete information about the requirements set forth by the Isle of Man Government and the registration with the Companies Registry.
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Isle of Man company formation
The Isle of Man is one of the top locations to base an offshore company for UK investors and foreign entrepreneurs alike. The fact that it is located close to the United Kingdom as well as the European Union can be an important advantage for investors interested in opening an offshore company for international trading. Below, we highlight some of the most important advantages when choosing to open an offshore company in the Isle of Man:
- no corporate tax: like in other offshore jurisdictions, there is no corporate income tax applicable to legal entities incorporated here.
- no minimum capital: there are no requirements for a minimum share capital and in practice most companies are incorporated with a paid-up capital of 1£.
- single shareholder: the company can be incorporated by only one individual and there requirements for corporate management are light.
- filing requirements: there are no burdensome annual filing requirements in the Isle of Man.
- privacy: while the identities of the corporate directors are disclosed in the public records, they can appoint nominee directors for an increased level of privacy.
In general, it is advisable to seek proper assistance if you are not aware of the provisions included in the Company Act. This is recommended in order to make sure that the company is property set up and it can be used for the purposes intended. Moreover, when requesting specialized assistance, investors will also be informed of all of their requirements and obligations for running a business in this location.
Bermuda company formation
Opening an offshore company in Bermuda is not a complicated process, however, investors from Europe will need to take into consideration the accessibility of the location in case they are required to travel to Bermuda for certain purposes.
Some advantages of offshore companies in Bermuda also include low incorporation costs (the minimum share capital is only 1 $) and the fact that the company can successfully be used for global trading or other purposes with no corporate tax applicable on its annual profits.
Our accountants in the Isle of Man offer complete services to investors who open a company here and wish to fully observe the requirements for keeping the minimum required company documents used for the annual financial statements. Not all companies are subject to corporate tax and this also means that most companies do not need to observe annual filing requirements, however, proper books of account are expected from companies incorporated here. Our team can give you details.
Criteria when choosing the location for the offshore company
The list below presents some of the most important aspects that investors are advised to take into consideration when choosing where they will base an offshore company:
- target market: the offshore company will provide a set of international services that can be intended for a specific market; if the United States is the targeted market, then Bermuda might be a preferred location; in other cases, the Isle of Man can be advantageous.
- stability: the political and economic stability of a certain location can have a significant role in the evolution of the business.
- legal requirements: while most offshore centers offer beneficial legal policies, getting to know the local rules, especially for asset protection, is an important step.
- offshore requirements: some jurisdictions make it mandatory to have a registered agent and in all cases the founder will need to have a local registered office.
- costs: perhaps one of the most important aspects to consider, in some cases the costs for Isle of Man company formation may be lower compared to Bermuda.
The list above is not exhaustive and investors may consider other criteria when choosing where to base their offshore.
The Island of Man is one of the primary locations to take into consideration when opening an offshore company that will be closely located to the European Union. Offshore company formation in the Isle of Man is a straightforward and simple process that can be handled with the help provided by our team when investors cannot be present or of they cannot stay during the entire process.
The Government has taken many steps to ensure that the company formation process is simplified and even offers a two-hour incorporation or the so-called “while you wait” incorporation which are more expensive compared to the regular incorporation but offer an undoubtedly fast company formation option.
Investors who wish to know more about setting up a company in the Isle of Man can contact us. Our agents are ready to answer any questions and can provide complete company formation services.