If you are interested in opening a company in the Isle of Man you can receive specialized assistance from Sanctuary Trust, local incorporation specialists.
Some of the top advantages that bring investors to the Isle of Man are the following:
- Easy incorporation: offshore Isle of Man company registration is simple and fast (as highlighted below).
- Low taxation: there is a zero corporate income tax for many types of activities; an important advantage for many investors who wish to also be closely located to the UK or the rest of Europe.
- Business environment: The Isle of Man is a robustly regulated and well-respected offshore jurisdiction, with its own government, taxes and legal system which has provided financial structuring for clients around the world for many years.
- No annual shareholders’ meeting must be held.
- VAT numbers accepted in the EU.
| Quick Facts | |
|---|---|
| Please introduce the types of companies usually started by foreigners | 1931 Act company or 2006 Act company |
Minimum share capital for LTD Company | None |
Minimum number of shareholders for Limited Company | 1 in most cases (two are required for some types of public companies) |
| Time frame for the incorporation (approx.) | Approx. 2 weeks |
| Corporate tax rate | 0% in general and 10% or 20% for certain types of activities |
| Dividend tax rate | 0% |
| Company Formation Price | Starting from £1,950 |
| Do you supply a Registered Address? (YES/NO) | Yes, for approx £1,100 per year |
| Local Director Required (Yes/No) | No, but can be provided |
| Annual Meeting Required | No |
| Is Accounting/Annual Return Required? | No filing of financial statements, however, companies file the annual return with the Registry. |
| Beneficial ownership | Regulated through the Beneficial Ownership Act 2021; disclosure requirements are in place. |
| Distance incorporation (when the investor does not visit IoM) |
Our team can act as representative, through a power of attorney, for the duration of the incorporation and/or as otherwise agreed for other matters. |
| Reasons to incorporate in the Isle of Man | Straightforward incorporation, zero tax (for many types of activities), conveniently located to the UK and Europe. |
| How we can help you | We offer complete services throughout the company registration phase, and after the business is registered, as investors may find that they have questions about doing business in the IoM. |
The Isle of Man is a small island located in the Irish Sea which gives foreign investors access to an independent territory which follows the laws and regulations of Great Britain. With strong connections with the UK, the Isle of Man, also known as Mann, offers a great investment environment in industries such as finance, insurance, and online gaming. Also, the Isle of Man is the 5th richest territory in the world based on its Gross Domestic Product per capita, according to the World Bank.
What are the types of companies / entities I can set up in the
Isle of Man?
The Isle of Man offers a variety of companies ready to be incorporated, but the typical ones are either a 1931 Act company or a 2006 Act company. There are also other laws thatprovide for trusts and foundations which represent important tax planning tools in the Isle of Man.
One of the most sought types of companies in the Isle of Man is the offshore company which is suitable for various activities and offers many advantages. Offshore companies are governed by the International Business Act of 1994.
How long does it take to open an IoM Company?
The entire company formation process takes around 2 weeks depending on how quickly you can
supply the requested signed and notarized documents. The Trade Registry offers the following alternatives:
- the standard incorporation: takes place within 48 hours and will include a fee of £ 100.
- the two-hour incorporation: possible when the documents for registration are submitted before 2:30 pm during a business day.
- the fast-track incorporation: can take place while the applicants wait for the service to be completed and will cost more than the previous types; this very fast incorporation is possible when all of the documents are received before 4 pm on a business day.
Important: please keep in mind that the above is only possible when the applicant has paid the
fees and has chosen a unique company name. Otherwise, the process will be longer.
What are the costs for setting up a company in the Isle of Man?
Fees might differ depending on your requirements and the company’s type and structure, however standard fees for incorporation is £1,950 plus VAT if applicable, and there is a local registry charge of £100 in addition to this. Depending on your requirements, other services may include:
- Registered Office – £1,100 p.a.
- Registered Agent – £1,350 p.a.
- FATCA/CRS Reporting – £375 p.a.
- Compliance fee – £1,000/£1,750 p.a.
- Open bank account – from £1,000
- Bookkeeping and Accounts – from £1,000
What are the requirements to open an offshore company in the Isle of Man?
The following conditions must be fulfilled in order to open an offshore company in Isle of Man:
- fulfilling the necessary KYC for Anti Money-Laundering purposes with us as Service
Provider; - choosing a company name which must end in Limited, Ltd., Public Limited Company,
PLC.; - appointing a company director, who must not necessarily be a resident;
- preparing the documents for incorporation (which we will provide);
- having a legal address in Isle of Man (we can provide this).
NOTE: The company details can be changed after the Isle of Man company registration process, by filling in the appropriate forms. The registered office and the details of the directors and secretary can be changed (when they are appointed or resign). Of course these changes entail a fee.
The following video presented by our agents summarizes the advantages of opening an offshore company in the Isle of Man:
How can I use an offshore company in the Isle of Man?
Foreign investors who are interested in Isle of Man company formation must know that these entities are usually used for one of the following purposes:
- for trading activities with companies in EU countries;
- for investment purposes;
- for holding purposes.
Do I have to obtain a business license after the company formation?
This depends on your company’s activities. While most standard activities don’t require a specific license, there are of course exceptions for example:
- Companies that are incorporated for specific purposes, such as insurance, mutual funds or others in the financial sector, are under the supervision and control of the Isle of Man Financial Services Authority. The Financial Services Act 2008, the Insurance Act 2008
and the Collective Investment Schemes Act 2008 are all important legal resources for investors interested in starting a business in the Isle of Man in the financial sector. - Those who wish to engage in gambling and e-gaming activities in the Isle are also required to comply with specific regulations, as set forth by the Gambling Supervision Commission. Gambling activities have seen substantial growth in recent years in the Isle of Man and businesses are required to comply with the licensing requirements as well as keeping the industry crime-free.
For assistance in registering an offshore company in the Isle of Man, please contact us. You can also ask our Isle of Man company formation specialists on the other advantages offered by offshore companies.