News: Registration of Company on the Isle of Man

Company registration on the Isle of Man

The Isle of Man is a jurisdiction located in the Irish Sea and controlled by the United Kingdom. The legislative system of the Isle of Man is attractive for international investors according to such criteria:

• there is no corporate sanctions and penalties;

• there are no specific requirements for residency;

• favourable environment for the registration of aircraft, airlines, ships/vessels and yachts.

Corporate law regulates offshore structures with the following enacted bills:

• The Limited Partnership (Legal Personality) 2011;

• The Companies 2006;

• The Partnership 1909;

• The Limited Liability Companies 1996;

• The Companies Acts 1931 to 2004.

Since July 1, 2017, the Central Register of Beneficial owners is effectively operating in the jurisdiction, thus, information about the founders of companies is generally available.

Types of ownership available for incorporation

Limited Partnership:

• there are no requirements to the authorized capital;

• partners can be legal and natural persons in the number from 1 to 20;

• there is no taxation for organizations that do not have resident partners and do not operate within the island;

• there is no need for periodic submission of reporting, but there is necessity for its conducting. Reporting data should be in the office and presented at the request of the relevant authorities;

• the name must end with the phrase Limited Partn. (LP).

Resident LLC:

• Initial capital is not regulated;

• minimum 2 participants and 1 manager are required;

• nominee participation is approved;

• taxation principles duplicate those of LP;

• the end of the name is Limited Liability Company (LP).

LLC:

• recommended (not required) authorized capital is 2000 pounds;

• 1 shareholder, 2 directors (nominee participation is possible), 1 secretary;

• tax is levied in the amount of 10% of net income from offshore territory.

New Manx Vehicle (NMV):

• it is incorporated in 1 of 4 forms of limitation of liability - shares, guarantees, guarantees and shares, unlimited;

• recommended (not required) statutory capital is 2000 pounds;

• 1 director (nominee one is allowed);

• profits are taxed at 10%;

• The name ends with - Limited. Corporation, Incorporated, Public Limited Company.

Hybrid Company:

• 2 directors are required (nominee ones are allowed), 1 secretary;

• profits earned as a result of operation in the territory of the Isle of Man are taxed at the rate of 10%.

In case of recorded discrepancies in the data of the Central Register of Beneficial owners and Bank Accounts, the latter may be blocked. To avoid the foregoing, it is recommended to practice trust institutions - trusts and foundations. There is a chance to achieve anonymity in relation to the founders of such structures(special status of "No persons with significant control").

In the context of worldwide implementation of the policy of transparent business relations, economic security and anonymity can be preservedusing deep knowledge in the legislative field.

A comprehensive analysis of the company and its spheres of influence will allow to reveal the most beneficial conditions for its registration. Proper application of legal instruments will save your money and create a reliable foundation for further development on the international market.

If you care about stability and legitimacy of your business both nowadays and with the future perspective, it is recommended to apply for legal advice and assistance to professionals.

Contact the lawyers of Law&Trust International for more detailed information and assistance in registering a business on the Isle of Man.