Organizations that open an SPV company in the Isle of Man enjoy a simple set up procedure, as well as a series of tax advantages. The special purpose vehicle, or SPV, can be created for the purpose of asset securitization, for financing certain projects, or for other purposes, mainly related to isolating financial risk.
Our Isle of man company formation agents assist companies that are interested in exploring their options for financing and risk reduction via this type of entity. In addition to complete incorporation assistance, we also offer ongoing support for IoM entities.
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What is the purpose of an SPV in the Isle of Man?
Some of the main uses of a special purpose vehicle include the following: project financing or new venture financing, securitization, investment pooling, investment strategy optimization, and others.
Investors who open an SPV company in the Isle of Man for risk minimization purposes can properly structure the legal entity in a way that will benefit the subsidiary (the parent company abroad). Our team can answer important questions about how this is done in the form of a limited liability company, and how financing through the SPV can be arranged in most cases.
How can investors open an SPV in the Isle of Man?
The SPV is commonly incorporated as a limited liability company, and it is structured by keeping in mind the parent company’s goals, for example, for obtaining financing. An important issue to consider is assigning the SPV with its purposes from the very beginning.
The Isle of Man company formation process can be expedited in many cases and even the standard incorporation time is short when compared to that in other jurisdictions. Investors can consider the following:
- The standard incorporation time is 48 hours following the receipt of all the needed documents;
- Another option is to incorporate the company within 2 hours; In this case, the fee for registration is higher;
- Investors can also enjoy a special service for immediate incorporation (“while you wait”); In this case, it is highly advisable to reach out to our team for details on how to prepare and when to file the documents for registration with the Companies Registry.
Isle of Man companies need to observe the requirements for taxation (please see below for more information), as well as the ones for filing the annual re
Why open an SPV company in the Isle of Man?
Firstly, setting up a company in the Isle of Man is a straightforward process that can be accomplished within an advantageous timeframe and by completing relatively few procedures. What’s more, investors who cannot be present in the IoM during the entire process can appoint one of our local agents to handle the main steps on their behalf.
Secondly, the Isle of Man has a favourable taxation regime that can also apply when the goal is to open an SPV company in the Isle of Man, depending on the types of activities the vehicle will be engaging in. Generally, companies are exempt from corporate taxation (with a 0% corporate income tax rate applicable for most types of activities).
Our accountants in the Isle of Man can give you details about the tax and reporting regime, including when your company is structured as a special purpose vehicle.
Understanding the tax and accounting requirements, along with the regulations for setting up a company or opening an Isle of Man bank account for a non-resident is an important step before deciding to incorporate a special purpose vehicle.
If you are interested in knowing more about how to open an SPV company in the Isle of Man, please contact one of our local agents for complete information about the procedure and requirements.