The Isle of Man offers a favourable regime for investors who are interested in entering the blockchain sector. Our team can help those interested apply for the relevant blockchain licenses in the Isle of Man and can help investors open their company and comply with the regulatory requirements.
Through its flexible licensing options and support for these businesses, Isle of Man provides an ideal space for a blockchain company to evolve as its technology does.
Table of Contents
The blockchain licence in the Isle of Man
The Token-Based Software Supplier License is the one suitable for blockchain-enabled platforms, such as e-gaming and others. The applicant needs to meet certain conditions that are not required for other types of licenses or providers that work with fiat currency platforms. Some of the important conditions are the following:
- the applicant must be able to show a complete understanding of their technology;
- the tokens used must already be available, not in development;
the value of the tokens will not be inflated during the application process (a news blackout will be enforced during this period in order to prevent this effect).
The Blockchain Sandbox is a special collaborative space available to entrepreneurs, investors and companies that are already operating in this field. It was created by Digital Isle of Man – an Executive Agency within the Department for Enterprise of the Isle of Man Government.
The Sandbox is an ecosystem that allows those involved to gain access to a dedicated hub. Participant companies can accelerate the blockchain regulatory process and businesses have access to three levels of support: Associate, Member and Partner. Our Isle of Man company formation agents list these below:
- associate: for a company that is looking towards making its base in the Isle of Man and will associate with the Digital Isle of Man Accelerator; this association can help raise the profile of the business and increase exposure to potential investors.
- member: in addition to the associate, businesses that opt for this have access to relocation support, guided access into the Sandbox and assistance for making the process of establishing the company base as straightforward as possible;
- partner: for businesses that already have an established base; they have access to the Blockchain Forum and can easily access the grants and assistance schemes for business growth.
The Sandbox is a space where the company involved in blockchain has access to a live test environment and it can run pilots. It can receive a restricted pre-production licence and early feedback.
Please note that the partnership between the Isle of Man Government and the Digital Isle of Man Accelerator Programme is subject to certain terms and conditions that can be detailed upon request by our team of company formation agents in the Isle of Man. We can help you understand the conditions for the regulatory sandbox and make sure that your blockchain business based in the Isle of Man receives proper guidance and support.
Companies in the Isle of Man
The Island is not only a favourable location form a regulatory perspective. It also offers an attractive taxation regime for blockchain companies and all businesses established here: a 0% standard corporate income tax rate and no capital gains tax.
Statistical data from the Government for the end of September 2020 shows that there were 254 companies incorporated as per the regulations of the 1931 Companies Act. Other data shows the following:
- there were 196 2006 Act companies incorporated at the end of the same month;
- there were 4 limited partnerships registered and 9 foundations;
- 14 foreign companies were registered as per the rules in force to also register the place of business in the Isle of Man (according to Part XI of the Companies Act 1931);
- 206 business names were registered.
The law in the Isle of Man provides for several types of companies:
Limited liability company: the LLC where the shareholders are only liable up to the extent of the invested capital;
Public company: similar to the LLC in terms of shareholder liability, it can offer its shares to the public;
Foreign Company: incorporated outside of the Isle of Man that opens a place of business in the Islands;
Company limited by shares: the liability of the shareholder is limited to the amount unpaid on the shares held.
Our team of Isle of Man company formation agents can give you more details about each of these business forms and others available to investors, such as the protected cell company.
Our team is here to answer questions about the needed licenses, and also about the other requirements for companies. Our accountants in the Isle of Man are ready to provide you with services that include but are not limited to, preparing and filing the annual return, as well as maintaining sufficient accounting records. You can reach out to us for more information.
Investors who also want to obtain Isle of Man residency, not just start a business in this field, can also ask out team any needed questions.
Contact us if you wish to open any type of business in the Isle of Man, such as a blockchain company and need to apply for the relevant licenses for this business field.