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Open a LLC in Isle Of Man

Updated on Friday 17th May 2019

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Open-a-LLC-in-Isle-Of-Man.jpgThe limited liability company (LLC) is a type of business entity incorporated according to the Isle of Man laws that has legal personality and capacity, separate from its founding members and registered agent.
 
Investors choose to open an LLC in the Isle of Man because it is a form of business that can be fully foreign owned. This is one of the several types of companies that can e incorporated by foreign investors and it is governed by the Limited Liability Companies Act.
 
The limited liability company is a business form that has several features, some of which we mention below:
 
  • - it is a legal entity: the corporation is distinct from the members, the registered agent or the manager.
  • - it has a distinct name: the name of the LLC is subject to certain guidelines and must be a unique one.
  • - it is managed by the members: the management can take place according to the proportion of the investment in the business or as described in the Articles of Association.
  • - it can be dissolved: the wound up or the dissolving of the company can take place when the members decide so or in the event of the death or retirement of some of the members, in some cases.
  • - it is subject to tax: the profits of the company are subject to the taxation laws applicable in the Isle of Man.
  • - it can be restricted: certain LLC may be subject to restrictions, as per the business sector in which they activate.
 
Setting up a company in the Isle of Man is a process that requires a few steps and this also applies to limited liability companies. First, the founders must draw up the Articles of Association and then they must commence the registration process by filling in the appropriate forms. Below, we talk more about the features of the limited liability company as well as list the main steps for registration.
 

What are the characteristics of the Isle of Man LLC?

 
The limited liability company is a business structure that can be successfully used for many types of activities. It can be suitable to small or medium business alike as well as for larger corporations. The key benefits for investors who choose to open an LLC in the Isle of Man are listed below:
 
  • Full foreign ownership: this is an important characteristic as foreign investors can be sure that they will own 100% of the LLC.
  • Limited liability: as the name suggests, the members are only liable for the company’s debts up to the amount of capital they have invested in the company.
  • Simple and fast registration: the Isle of Man company formation process is a quick one, including only a few steps and fees for registration.
  • No corporate taxes: Isle of Man is known as a tax haven closely located to some of the most important EU economies; the LLC is not subject to taxes although some exemptions apply for banks or income from land and property in the country.

What are the steps for LLC incorporation?

 
The LLC is a flexible business structure that can benefit from a fast incorporation process. Below, we describe the main steps for incorporating this type of legal entity:
 
  1. choose a company name: the name needs to be a unique one and in compliance with the ongoing regulations.
  2. choose a registered agent: the role of the agent is important in the incorporation of the company as he will handle part of the filings needed for the company.
  3. choose the registered office: this has to be at a location in the Isle of Man.
  4. prepare the documents: the Articles of Association set forth the scope and structure of the business.
  5. registration submission: once the documents are prepared, they can be submitted to the Companies Registry.
  6. post-registration: investors can now open a bank account and obtain any other licenses or make other registrations.
 
VAT registration in the Isle of Man is mandatory only for those companies that have an annual turnover over a certain amount. However, voluntary registration is also an option. One of our agents who specialize in Isle of Man company formation can give you more details both about the general company formation steps for a LLC and about the taxation principles that apply in this case. The favorable taxation regime is one of the primary reasons why investors choose to base a company here.
 
A key step in the incorporation of the LLC is drawing up the Articles of Association, sometimes also referred to as the Articles of Organization. These are the constitutive documents for the company and will set forth not only the purpose of the business but also the manner in which it will be managed, along with many other details. Standardized forms can be used, however, there is no mandatory form to be used when drawing up the Articles. One of our agents who specialize in offshore company formation in the Isle of Man can help investors draw up the needed documentation. The information included in the articles is the following:
 
  • the name and address of the company;
  • the name and address of the company members and those of the registered agent who is based in the Isle of Man.
  • the member’s initial contribution.
  • the right to continue the business by the remaining members in case of death, retirement, resignation or other occurrences for another member.
  • the internal regulation of the company’s affairs, any special management principles.
The Articles of Association are to be signed by the founding members of the company.
 
Once the Articles are drawn up and signed, the founders need to fill in a special form, as required by the Isle of Man Government. This will state the intended registered office, which needs to be located in the Isle of Man (this is a mandatory requirement). Along with the information about the office, the form also includes the details regarding the company’s registered agent who will consent his appointment in writing.
 
Offshore company formation in the Isle of Man is a simple process and one that can be assisted throughout its duration by our team of experts.
 
Investors who are interested in Isle of Man company registration should know that appointing a registered agent is a mandatory step and this individual needs to have the necessary qualifications for the position. Among these, we can mention that he is required to be a legal practitioner, a member of the Chartered Institute of Management Accountants, a member of the Institute Chartered Secretaries and Administrators or a lawyer. 
 
Our agents will help you verify the chosen company name, prepare the Articles of Association and gather the needed information about the company members and the nominee directors, should this be an option. We can also help you with special registered agent services.
 
With our aid, your LLC in the Isle of Man will be incorporated in the shortest amount of time possible. Please do not hesitate to contact us to find out more about how we can assist you.
 

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