Isle of Man company
Last updated on March 25th, 2025
The Isle of Man is a reputable jurisdiction, based in Europe territory, has close ties to the UK, as their legislation is very similar, and at the same time it is a self-governing island. The island is located not far from the UK and Ireland. Close ties to the British economy provide security advantages for businesses and companies registered on this island.
Many entrepreneurs and investors prefer to register a company on the Isle of Man as this jurisdiction remains offshore and attractive to many of them.
The legislation of the Isle of Man perfectly regulates the business environment, there are highly developed financial incentives, state policy is aimed at supporting business and promoting economic growth, offering various assistance options, resources and protection, which allows entrepreneurs to develop their business and benefit from the Island.
Advantages of registering a company on the Isle of Man
- Tax benefits:
Companies can make significant savings when planning their finances, as the Isle of Man is an attractive tax regime for businesses.
– The corporate tax rate is one of the lowest in Europe: 0–10%.
– Capital gains tax: 0%.
– Inheritance tax: 0%.
If an Isle of Man company is expanding into the international market, the right tax structure can allow for significant savings from international trading.
- Location:
– Strategic location. The Isle of Man is a European territory, although it is not part of the European Union, it still has access to the markets of Europe and the UK.
- Time Frame for the Company Registration:
– Fast and efficient registration, which can take as little as 48 hours.
- Legal environment:
– The legislative and legal environment guarantees a safe and predictable business.
- Government Support:
– Significant business support from the local government.
Types of companies
It is important to choose the right type of company that will suit and correspond to the business plan, as the types of companies on the Isle of Man may have differences in legal regulation, tax obligations and the degree of liability protection and administrative consequences.
The main types of companies on the Isle of Man and their features:
- Limited liability company:
In this type of company, the liability of participants or subscribers is limited to the amount of the investment made or the guarantees given.
A limited liability company can be subdivided into:
- A private limited liability company
This type of company is mainly attractive for small and medium-sized businesses. Shareholders are holders of private shares and are liable to the extent of the contributed capital.
- A public limited liability company
This type of company allows you to sell shares of the company to the public and thus attract outside capital, it is preferable for large companies in order to attract investments.
- Limited Liability Company by Guarantee: These are mostly registered as non-profits, and their members are liable for the amount of the contributed capital to the company’s assets.
- Unlimited Company: This means that the liability of the company’s members is unlimited.
- Partnerships:
- General Partnership. Each partner in a general partnership is jointly and severally liable for debts and obligations.
- Limited Partnerships. These types have general partners and limited partners in their structure. General partners manage the business and are fully liable. Limited partners contribute capital to the partnership, receive profits on top of the contributed capital, and are usually liable for the amount of the contributed capital only.
- Trusts and Foundations: These types are primarily used for personal asset management and protection and estate planning. They set for specific purpose and not for the profit as they are not suitable for commercial operation.
Isle of Man company registration by non-residents
The registration process and requirements for non-residents are the same as for residents of the island and have the following main points:
Right to register:
– No restrictions on nationality and place of residence (except for countries under sanctions).
– Any citizen who has reached the age of 18 can register.
Basic requirements for registration:
Company Name
- Choosing a unique company name
- The words or abbreviation “Limited”, “Ltd”, “Public Limited Company”, “PLC” or “P.L.C.” (for a public company) must be used at the end of the company name.
Registered Address of the Company and Registered agent
- A company must appoint a registered agent, who specialize in Isle of Man company formation as it is legal and regulatory requirements. A registered agent must hold a Class 4 license issued by Isle of Man (FSA) Financial Services Authority
- The company must have a physical address in the Isle of Man, establishing a Registered Office is mandatory.
- The registered office can be provided by the appointed registered agent.
Appointment of director(s)
- A director can be any citizen residing in any country.
- A minimum of two directors are required.
- Corporate directors are not permitted.
Appointment of a company secretary
- For a public company is compulsory.
- Minimum one secretary is mandatory.
- One of Directors can be also appointed as a secretary.
- Ensuring that the company secretary is suitably qualified.
Shareholder(s)
- At list one shareholder is required.
- Director(s) can be shareholders.
- Any citizen who has reached the age of 18.
Capital and Structure
- Determination of the amount of capital and corporate structure, choice of class of shares or several classes of shares.
Company documents and Registration
- Preparation of Memorandum And Articles Of Association. BRIS GROUP can assist with creating the M&A of Association. Documents must be prepared in accordance with the Companies Act
- Completion accurately the form 1 and submission to the Registrar.
- Registration can be done remotely without the need for personal presence.
- Agents themselves will prepare all the necessary documents, monitor the registration, notarize and apostille the company documents for international use.
Annual Obligations
After the company is registered, it is mandatory to renew it annually, submit reports and pay state fees to the registrar to maintain compliance with the requirements of Companies Act.
Annual Return:
– Annual return must be lodged with the Isle of Man Companies Registry.
– The return contains information about the current directors and shareholders of the company, or changes in their structure.
– The return must be lodged within one month of the anniversary of the company’s incorporation.
Financial Statement:
– The company must prepare and file financial statements.
– Depending on the size and nature of the business, the financial statements may require audit.
Annual Declaration:
– The declaration must be lodged by companies incorporated under the 2006 Act and must demonstrate compliance with Isle of Man statutory requirements.
Compliance and maintaining good standing:
– The company must ensure that it complies with regulatory requirements in its activities.
– Comply with anti-money laundering (AML) procedures.
– Comply with economic substance requirements.
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If you wish to register an Isle of Man Company our team will be happy to help you there and provide you with more detailed information, you can contact us at [email protected]
Isle of Man Company Registration
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