The Isle of Man is a self-governing territory belonging to the United Kingdom. At the same time, the state has its own parliament, which is the oldest in the world. With formal dependence on Great Britain, the qualified services of the Isle of Man are entitled to determine the principles of the state's tax policy, but there remains the need to coordinate all actions with the Queen.

Access to information resources

Information on taxes, company registration features and other materials important for international business are on the state's website available to the public. The register of organizations with all data about directors, shareholders and other persons of the company is also open.

Isle of Man is an offshore with a positive reputation.

Nowadays, the Isle of Man is one of the most attractive and stable operating offshores. At the same time, the government's actions tend to constantly reduce tax pressure on business. The trust of international companies to the Isle of Man is growing. As of 2007, the territory was included in the five most favourable to business low-tax jurisdictions. The Isle of Man also reached the highest level in the rating agency Standard and Poor's. Behind were Singapore, Luxembourg, Bermuda.

Forms of doing business

It is possible to buy or register a company on the Isle of Man in the following organizational and legal forms:

  1. Joint-stock company with limited liability.
  2. Joint-stock company, the liability of which participants is determined by the value of the shares owned by them.
  3. Joint-stock company with unlimited liability (possibility of issue of shares is provided).
  4. Joint-stock company with unlimited liability (possibility of issue of shares is not provided).
  5. Limited liability company.
  6. Trust.
  7. Partnership.

Opening a bank on the Isle of Man

Not everyone can manage to compete this task. Reputation is the primary thing for jurisdiction. And the relevant services are extremely scrupulous to issuing licenses. Therefore, permission to conduct banking activities can be issued only to branches or departments of already existing banks registered in those countries where financial institutions are properly supervised. The Special Commission for Financial Supervision of the Isle of Man will study the history of the bank over the past five years. And if its successes satisfy the inspectors, at first the institution can get the status of "managed" (it is under the control of another Man's bank and has the right to conduct only international operations).

What you need to know if you decide to register a company on the Isle of Man?

  1. Name of the Man's company can be compiled in any language using the Roman letters, and the translation into English is required.
  2. The founder can be a natural or legal person. The place of registration does not matter.
  3. There is no requirement to pay the minimum authorized capital.
  4. Managerial functions can be assigned to the director or to the management company.
  5. The company appoints a registered agent whose activities are to be licensed.
  6. The firm's office is registered in the territory of the Isle of Man. However, there is no requirement for a local secretary. Copies of shareholder registers, accounting records, minutes of meetings should be kept in the office.
  7. It is necessary to provide all data about the beneficial owner. Availability of the nominee directors is not provided for in the legislation.
  8. Assets can be distributed in the form of dividends, and in other ways (for example, by buying out or repurchasing shares). The company's share capital is allowed to be decreased. At the same time, directors should be ready to confirm the solvency of the firm after the decrease in capital.

Taxes on the Isle of Man

Trade with the state is carried out in accordance with the rules of the European Union (since the UK is the member State of the EU). In other matters, the Isle of Man remains independent.

In this jurisdiction, no tax is levied on:

  • capital increase;
  • import turnover tax;
  • transfer of capital;
  • property, gift, inheritance.

There is also no stamp duty.

The duration of the tax year is determined by the period from April 6 to April 5.

As for the income tax, its maximum rate is provided for trusts (18%). Other companies pay income tax only from banking operations (10%).

VAT is calculated only in case of import/export of goods, services or works from / to the EU countries. At the same time, VAT is 17.5%. The exemption is valid for companies operating in the airport area (port-franco zone).

Services in such areas are exempt from tax: finance, insurance, education, health care, etc. Zero tax rate is valid for such areas as construction of buildings, clothing sales, etc.

The reduced rate (5%) is applicable to organizations that are associated with the export / import of children's car seats, housing and repair services, etc.

Total tax rate on income of natural persons is 10%. If the total annual income exceeds 10,500 pounds sterling, the tax rate increases to 18%.

System of social insurance

Insurance contributions are divided into four classes:

  1. 1st class. Mandatory for payment by both employees and employers. If the employee's earnings exceed £ 453 per month, the contribution is 10%, the employer, in turn, pays 12.8% as the contribution. The employee with the income in excess of 3012 GBP per month ceases payment of the contribution, for the employer no changes occur.
  2. 2nd class. Paid by self-employed individuals.
  3. 3rd class. Voluntary, paid by natural persons.
  4. 4th class. Obligatory for payment by retirement age individuals.

A company on the Isle of Man, which does not hire residents of this state and conducts business overseas, is exempt from social contributions.

Reporting and accounting

Preparation of an annual financial report is not mandatory. Only joint-stock companies should be audited. At the same time, the organization is obliged to provide financial statements at the request of the tax service or the registrar of companies.

A simplified form of the declaration can be submitted via the Internet.

With regard to treaties for the avoidance of double taxation, the Isle of Man concluded such agreement only with the United Kingdom. But this does not affect the conclusion of purchase/sale contracts.

There are also agreements in the sphere of taxation and economic cooperation with such countries as Denmark, the Faroe Islands, Finland, Greenland, Iceland, Norway, Sweden, the Netherlands.

We will register your company on the Isle of Man, taking into account all requirements and regulations. You can buy offshore on the Isle of Man easily and quickly! Registering an offshore company on the Isle of Man is one of the cheapest and easiest ways to establish a legitimate international business. Registration of companies is one of the main areas of our work.

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