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The virtual office is a physical address for a business that can also include facilities that are present in a traditional office space. The owner of the business can select the variety of services and can personalize the needed package, as per the particularities of the business.
Companies can open a virtual office is Isle of Man as an alternative to the traditional office. This is a suitable option especially for those offshore owners who wish to reduce the costs traditionally associated with renting or purchasing an office space and supporting a large team of employees.
The virtual office offers flexibility, saves costs and, most importantly, it offers the local registered address needed to incorporate a business.
What companies can use a virtual office
An offshore company in the Isle of Man can operate through a virtual office while still having access to most of the facilities available through a traditional office. Setting up a company in the Isle of Man is a simple process and foreign investors can benefit from the advanced flexibility and administrative advantages if they choose to operate their business in this manner.
Trade businesses in the Isle of Man, as well as businesses involved in virtually any other type of activity, can benefit from the lower costs and advantages associated with operating via a virtual office.
A virtual office package will include a local address that will be used for Isle of Man company registration and for business correspondence and additional secretary services needed to operate the business.
•local registered address and telephone number: the address will be mandatory for the registration of the business and the telephone number is used for keeping a professional business image, at the same time facilitating the communication with local clients;
•call handling and forwarding services: a secretary will handle all of the calls that come through the pre-determined local telephone line and will forward them to you as needed;
•mail and fax forwarding services: any mail that arrives at the physical address, as well as any faxes that arrive for your company on the local fax number, will be forwarded as per your instructions.
•document re-mailing: re-mailing services can be useful for companies that need to receive their documents at a different address.
Additional services may include a dedicated office space and extra meeting room space, as needed by the company owners. Investors who choose to work via a virtual office provided by our agents will be able to indicate a preferred forwarding address and all mail and call forwarding will be handled as per the instructions of the client.
Investors who choose to work via a virtual office provided by our agents will be able to indicate a preferred forwarding address and all mail and call forwarding will be handled as per the instructions of the client.
A virtual office offers a high degree of flexibility and substantially lower costs compared to those incurred when administering a traditional office space.
How to open a company and have a virtual office in the Isle of Man
Investors can choose to work via a virtual office as soon as they decide to incorporate a company in the Isle of Man. As a matter of fact, the decision is important as the address of the virtual office will be used in the incorporation documents as the registered office of the business. It is important to have this address as it will be used for official correspondence not only from the clients but also from the banks, Government entities, and other organizations.
The usual time need for Isle of Man company formation is approximately two weeks. With the help of our agents, you will be able to handle some of the steps remotely, while we help you draft the documents. We will help you form the very beginning, starting with naming at least one shareholder and determining how the share capital will be allotted. It is useful to know that there is no mandatory minimum share capital.
Having a registered agent and a registered office is important, as previously stated. The agent must be a resident of the Isle of Man and he will be the one who will file the documents and make other future submissions, as needed. The Memorandum and Articles of Association will include all of the company details and it is drafted after the previous steps are completed as it will include the share capital, the information about the shareholders, the registered address and the registered agent.
Once all of the documents are in order, one of our agents will help you submit the documents for registration with the Isle of Man Companies Registry. The company is usually incorporated within two days after this submission is made. After this is done, the founders can open a corporate bank account (for which the virtual office address will be used) and can make any other registrations, for example, the VAT registration when the annual turnover is greater than a certain amount.
We invite you to watch a video about the virtual office in the Isle of Man:
Company formation steps in the Isle of Man
Below, we briefly summarize the steps that need to take place when setting up a company in Isle of Man:
Name: choose and reserve the company name; this needs to be unique;
Choose the registered address: any company in the Isle of Man is required to have a registered office based on the Isle;
Prepare the documents: these are the constitutive documents for the new legal entity;
Prepare the fee and register: the Government imposes a registration fee; once this is paid, the other registration documents are also submitted.
Choosing to work via a virtual office needs to take place from the very beginning, as the address of the office will be used during the initial company formation stages, when naming the registered address.
These steps are generally handled in this order, however, when working with our team we can assist you in taking care pf several issues at the same time. For example, our team can help reserve the name whilst also starting to work on the incorporation papers. This makes the process a fast one and investors can rely on our expertise for complete services, so that their company is property registered.
In the Isle of Man there are two possible registrations: under the 1931 Act or under the 2006 Act. In both cases it is highly advisable for foreign investors to seek the services of a professional incorporation agency such as our own.
The following fees imposed by the authorities are relevant for the purpose of company registration:
- 100£ the standard incorporation that is generally accomplished within 48 hours of receiving the documents;
- 250£ for the 2 hour incorporation, if the documents are submitted before 2.30 pm on a business day;
- 500£ for the fastest incorporation service, when the documents are submitted before 4 pm on a business day; in this case, the company can be incorporated as the individual waits.
Please keep in mind that the fees for registration presented above applied at the time this article was written. For other updates and if you wish to incorporate in 2021, please reach our to our Isle of Man company formation agents.
Changing the virtual office address
Business owners may find that they wish to change their virtual office services provider after some time. Of course, this is possible and it can be motivated by a number of issues, such as budget cuts, a different physical location, additional features or many other reasons.
Irrespective of the reason to move to a different virtual office provider, the change needs to be communicated to the Companies Registry when the address of the virtual office is the one used as the company’s registered address in the Isle of Man. This step is essential due to the fac that any change in the company details needs to be clearly outlined to the authorities.
When the company changes the registered office (which is also the virtual office address), this is notified by filing a special form (Form 4) within one month of the change. Observing this deadline is important as failure to do so is subject to filing penalties (of 100£ for late filings between 1 month and 3 months and 250£ for late filings of more than 3 months). Entrepreneurs should note that the date that is taken into consideration for this purpose is the date of change stated in the form, not the date on which the form was signed (an offset may exist between these used dates and agents who have the responsibility to notify the change should be well aware of how the filing deadline is calculated in order to avoid the existing penalties).
Our team is ready to answer any questions you may have about setting up a company using a virtual office, changing the initial virtual office provider or even moving a company from a traditional office to a virtual one. The latter can be a suitable option especially if the company has gone through important changes or restructurings during the last year. It is also a solution for companies that are looking to cut down on existing expenses and, for many companies, it may become the preferred working method once the change is complete and they have the flexibility of remote work and company management.
Most virtual office service providers offer a number of payment options, according to the chosen facilities, ongoing support, as well as the company profile. Some will even allow for tailored options, packages and payment plans. Discussing these aspects is essential before commencing the incorporation process and our Isle of Man company formation agents can help answer any questions you might have.
The Isle of Man is a location that offers multiple business advantages, from low taxes or no taxes for locally registered companies to a strong level of investor confidentiality. Any foreign investor can incorporate here and can act as company director regardless of nationality. The business structure is flexible and can be used for a number of different purposes. A virtual office package in the Isle of Man only adds to this flexibility, as investors can work from anywhere in the world while maintaining a permanent business address in this jurisdiction.
Call us now at +44 1624 620212 to 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 our client, you will benefit 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.