The Isle of Man is a self-governing jurisdiction with a separate government and identity. The Isle of Man is an established business and finance center, and entrepreneurs choose to register a company in the Isle of Man because its corporate structures provide flexibility and tax benefits.
In addition to offering efficiency for the management of wealth, the island provides a great deal of privacy to investors, whilst still meeting global compliance standards.
The requirements and establishment of an Isle of Man Company are governed by either the Companies Act 1931 (CA 1931), which subject companies under it to many operational and filing requirements, or the Companies Act 2006 (CA 2006), which allows companies subject to it more flexibility in its operation. Within both Acts, there are stipulations relating to Registered Offices and in the Companies Act 2006, Registered Agents.
Benefits of incorporating a company on the Isle of Man
The favorable tax regime of the Isle of Man makes it a desirable base from which to conduct business. The benefits of incorporating a company on the Island include 0% corporation tax for most businesses, and no capital gains tax, withholding tax, or inheritance tax. It also has a rapidly expanding tax treaty network for the avoidance of double taxation.
The island is a reliable center for business. It has maintained a successful business and investment space by making its laws simple and efficient. It is also politically and economically stable with low crime rates.
Provision of a Registered Office and Registered Agent on the Isle of Man
All Isle of Man companies must have a registered office in the Isle of Man – a registered office address is the official address of a company and will be on the public record at the Isle of Man Companies Registry. This address can be separate from the company’s place of business and is very often the address of a properly licensed third-party agent.
The registered office would hold company documents including:
- The Memorandum of Association
- The Articles of Association
- The Register of Directors and members
- Duplicates of any documents submitted to the Companies Registry
An Isle of Man company under the 2006 Act can only be formed by a licensed service provider and must assign a registered agent. Thus the registered agent must understand the company’s activities.
An Isle of Man Registered Agent
The role of a Registered Agent is normal throughout global corporate jurisdictions. A Registered Agent is assigned to ensure the formal recording and upkeep of company information to acknowledge regulatory obligations. The Registered Agent is a key fiduciary in the Company. In the Isle of Man, the Registered Agent has an important role to play with 2006 Act companies and is the pivotal person responsible for ensuring that a 2006 Act Company is properly administered.
Obligations of the Registered Agent
A Registered Agent must hold a corporate service provider’s license, given by the Isle of Man Financial Services Authority.
- The Registered Agent is required to make certain filings with, and submit certain applications to, the Isle of Man Registrar of Companies.
- He/she must ensure that it holds and maintains several statutory registers and documents at the office of the company’s Registered Agent. The documents which a Registered Agent must hold by Statute include memorandum and articles signed by each subscriber, register of members, directors and charges, its accounting records, and directors and members minute books.
- The Isle of Man Anti-money laundering laws also employs the Registered Agent to hold due diligence information on persons connected with the company and also monitor the activity of each company from a money laundering point of view.
In essence, the duties placed on a Registered Agent are tantamount to that of a Director and include a formal requirement to understand the company’s activities at the beginning and on an ongoing basis.
Both a Registered Office and a Registered Agent are statutes for a CA 2006 company, and often, the two functions are executed by the same licensed third-party provider.
What you should know when establishing an Isle of Man Company
Before incorporating your company on the Island, you need to assign a name to be submitted for authorization. Then you have to choose a suitable structure. There are also legal documents that must be prepared diligently. These include the memorandum and articles of association, among others.
In addition to these is assigning a registered officer who must be licensed by the Isle of Man Financial Supervision Commission to act as a registered agent. Also, at least one company director must be appointed.
These are general conditions for the establishment of the company, but if you are not a resident of the Isle of Man, you will need a professional to assist you in your company formation there.
Several online service providers claim to offer Isle of Man incorporation, but many of these do not meet the statutory requirements of an Isle of Man company Registration. So it is best to deal with an Isle of Man service provider who is aware of the legal obligations associated with incorporating a company in the isle of man. Look no further, your Damalion expert can assist you on this end.
Registration of a company on the isle of man is quite straightforward but as a non-resident of the Island, you will need a professional to assist in your company formation there. Contact your Damalion expert now for your company formation on the Isle of Man.
