The Isle of Man and the British Virgin Islands are well-known low tax jurisdictions that can be used by investors who wish to incorporate an offshore company.
When deciding to open an offshore company in the Isle of Man of BVI, investors can keep the following issues in mind:
- actual location: the Isle of Man is closely located to Europe while BVI is in the Caribbean, meaning that it is close to US investors.
- tax: both locations have a corporate income tax of 0%, an important advantage.
- local agent: investors will need to appoint a local agent both in the BVI and in the Isle of Man.
- corporate management: like in the BVI, the Isle of Man company formation principles require one director for an offshore company and there is no need for having local shareholders.
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The Isle of Man company formation process
Offshore company formation in the Isle of Man is a simple process, subject to a few steps. Standard incorporation lasts 48 hours and investors also have access to two fast-track incorporation options: the 2-hour incorporation and the almost instant incorporation, while the entrepreneur is waiting at the Companies Registry.
Investors interested in setting up a company in the Isle of Man will need to provide a unique name for the company and pay the registration fees, starting at 100 £, according to incorporation type.
The Isle of Man as an offshore location
The fact that offshore company formation in the Isle of Man is a process that can be accomplished in a few hours is one of the main reasons why the location has become increasingly popular with investors who wish to set up an offshore structure close to the United Kingdom or other EU countries. The Isle offers a stable business environment, and although it is not part of the EU, there is a customs and excise agreement with the UK.
The Isle of Man taxation rules are another reason why this location is unique in Europe: no capital gains tax, stamp duty, wealth and inheritance tax and no corporate income tax for most of the business activities (banking is subject to taxation, for example).
For more information about why the Isle is a suitable offshore location, please contact our agents who specialize in Isle of Man company formation.
Our accountants in the Isle of Man can give you complete information about the taxation principles, the tax neutrality enjoyed by businesses in almost all industries, and the annual reporting requirements. While companies are generally asked to only maintain a minimum number of accounting records, it is still necessary to work with a local CPA to ensure compliance with these regulations.