The Isle of Man is a self-governing British Crown dependency in the Irish Sea located between England and Ireland.
Being a jurisdiction with a separate government and identity, the Isle of Man is an established global business and finance center, with a secure base built on political and economic stability.
Anyone looking for an appealing company formation can count on the Isle of Man as this country deserves its reputation for being one of the most stable and secure countries in the world.
Advantages to Isle of Man company registration
- The Isle of Man has a custom agreement with the UK which promotes trade
- The Isle of Man is a low-tax economy with no capital gains tax, stamp duty, wealth tax, or inheritance tax and a top rate of income tax of 20%.
- In the isle of man, the rate of corporation tax is 0% for almost all types of income.
- The Isle of Man has essential facilities and structures in terms of banking, legal, and accounting services with costs at competitive rates in comparison to some other jurisdictions.
- There is no tax levied on trusts with non-Isle of Man resident beneficiaries
- It has a rapidly expanding tax treaty network for the avoidance of double taxation.
Although, not a full member of the European Union, the Isle of Man still has an associate status which enables Island-traders free trade with the rest of the community but no liability for financial contributions.
Types of Isle of Man companies
Two types of Companies Acts are available in the Isle of Man:
- an old-style company registration under the 1931 act which is subject to many operational and filing requirements, and
- a limited company under the 2006 act which is the most popular and is designed specifically to allow more flexibility in its operation.
Under both the 1931 and 2006 Companies Acts, there are several types of companies available:
- Limited by shares: this is the most used type of company in which the liability of its members is limited to the amount unpaid on shares they hold.
- Limited by guarantee: companies limited by guarantee do not have a share capital. Its members are elected and can resign. Also, its membership is not transferable.
- Limited by guarantee and having a share capital (this is a hybrid company): companies limited by guarantee and having shares can have members who hold shares, and members who do not.
- Unlimited liability: this type of company has a share capital in exactly the same way as a company limited by shares, but there is no boundary to the liability of members.
Registration of a company on the isle of man is relatively straightforward but if you are a non-resident of the Isle of Man, you will need a professional to assist in your company formation there.
Do you need more information on registering a company in the Isle of Man, or are you ready to register your company in this country? Let’s go ahead and contact your Damalion expert now.
