Establishing a company in the Isle of Man

The Isle of Man is located in the Irish Sea (80km from the English coast), precisely midway between the UK and Ireland. It can be reached by plane from London and even a ferry from the nearby Liverpool port. The island is a British Crown Dependency but is not an outright British territory and without any parliamentary representation is the British government. The UK is responsible only for matters of foreign affairs and security through representatives of the Queen. The spoken language is English, although the ancient native language of Manx still exists, although is not in active usage. The fact that English is its language is a significant advantage for companies choosing to register there, as it simplifies the process.

The Isle of Man has been in existence since 6,500 BC, and it is one of the six Celtic original nations. The Celtic culture is still prevalent thousands of years later, and greatly evidenced in island life. Its area is a mere 572 km2 and its population is 85,000. The capital is the city of Douglas, which is obviously the largest as well. The coasts are lush with vegetation and typified by low hills and valleys. The climate is temperate, pleasant in the summers and mildly cold and very rainy in winter.

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Three things you did not know about the Isle of Man:

  • The Isle of Man imposes no speed limits on its roads, excluding inner towns and villages. Also, it has a circular road that encircles the entire island. These two facts are particularly appealing to bikers that flock there every summer and spring to organize races and adventure trips.
  • The Isle of Man is very involved in recycling and green energy. There are recycling bins scattered everywhere around the island and this constitutes an important industry. Efforts are made to promote energy generation from alternative and renewable energy sources to reduce pollution from transportation.
  • The island cuisine is mostly inspired by the British, with the most traditional dish that of potatoes and herring, and recently French fries and cheese sauce. Meaning, apart from the various advantages of the island, cookery will probably not be the highlight of your visit.

Isle of Man's Economy

Taxes on the island are low, a strong draw for international companies registering there. Foreign business activity is a very developed and extensive industry for the island economy; the corporate tax is 0% for all income except profit from banking. Furthermore, the island has no capital gains tax or inheritance tax and has set specific caps for personal income tax. Additional sectors are tourism, and to some limited extent also traditional industry. GDP is 2.2 billion USD, mostly generated by company registration, and per capita income is 35,000 USD.

Those interested in establishing a company on the island must choose between four optional entities: Hybrid, Resident LLC, Private Limited and New Manx Vehicle.

Additional information about establishing offshore companies in the Isle of Man:

General
Type of company
Private Limited
Relevant Companies Law
The Companies Acts 1931, 2006
Offices
Law requires companies to provide a local office address
Language of original incorporation documents
English
Finance and Taxation
Currency
GBP
Corporate tax rate
0%
Standard share capital
2,000 GBP
Office Holders
Secretary
Obligation to appoint company secretary
Required
Obligation to appoint local secretary
Not required
Type of entity that may function as company secretary
Individual
Director
Obligation to appoint company director
Required
Obligation to appoint local company director
Not required
Minimum number of directors
2
Type of entity that may serve as company director
Individual
Shareholders
Obligation to register shareholders
Required
Obligation to register local shareholders
Not required
Minimum number of shareholders
1
Type of entity that may register as shareholder
Individual and/or company
Type of shares
Registered shares, preferred shares, redeemable shares, voting/non-voting shares
Accessibility of Information
Company registrar
Information regarding office holders accessible to the public
Annual Assembly and Reporting
Obligation to hold annual assembly
Required, may be held anywhere
Obligation to prepare financial reports
Required
Obligation to submit financial reports
Required