Isle of Man
The Isle of Man is a self-governing British crown dependency, located in the Irish Sea at the geographical centre of the British Isles. The Isle of Man legal system is based on the English common-law model.
Isle of Man advantages and offshore companies application
Main advantage of the Isle of Man companies is paying zero tax on trading and investment income. The Isle of Man has a customs and excise agreement with the UK. This means that for VAT, customs, and most excise duties, the two territories are treated as one. So it may be advisable to register an Isle of Man offshore company for VAT if it plans trading with the EU.
Most common use of the Isle of Man offshore companies:
- holding investment, e.g. portfolios, UK commercial property and other companies shares - these activities are not taxed;
- simplified trading within the EU due to the zero rate of tax on trading income and the ability to quote an EU accepted VAT number;
- holding intellectual property since the Isle of Man is a signatory to the Paris Convention on Patents and Trademarks.
Specifics of offshore company formation in the Isle of Man
- Incorporation time - 3-5 days after the name approval by the Companies Registry. Name ending can be only Limited, Ltd, Public Limited Company or PLC.
- An offshore company may be incorporated with a single shareholder, which can have a single share with zero par value. A single director is allowed and he/she may be non - Isle of Man resident.
Annual accounting and support for offshore companies in the Isle of Man
- An offshore company is required to file an annual return. It is the responsibility of the director(s) to prepare the annual return and the responsibility of the registered agent to file the return.
- Offshore companies accounts need not be prepared. However accounting records must be maintained at the address of the Isle of Man registered agent.
- An offshore company need not have its accounts audited if it meets two of the three following criteria:
– its annual turnover is GBP 5.6 million or less;
– its balance sheet total is GBP 2.8 million or less;
– its average number of employees is 50 or fewer - Every offshore company tax return must be prepared and filed at the Isle of Man Treasury. All Isle of Man companies are now treated as resident companies. Resident companies are taxed at a rate of 0% on their trading and investment income. Income derived from land and property situated in the Isle of Man is taxed at a rate of 10%.
Offshore company formation fees
- Formation and 1st year fees
- 3 040 GBP + VAT (this includes company formation, Government fees, Annual filing fee, provision of IOM directors, Registered agent, secretary and office and management fees)
- 2nd and subsequent years fees
- 2 845 GBP + VAT (including Registered agent, secretary and office, also includes provision of IOM directors, management and annual return filing fee)
- Shipping the documents by DHL or FedEx is paid extra.
The list of the documents a client receives with the Isle of Man offshore company corporate package:
- 1. Memorandum and Articles of Association.
- 2. Certificate of Incorporation.
- 3. Subscribers' Resolutions to appoint the first director/s.
The following information will be required for the Isle of Man offshore company formation:
- 1. Three alternative company names.
- 2. Full name and address of the director(s), certified passport copy and proof of address.
- 3. Full name and address of the shareholder(s), certified passport copy and proof of address.
- 4. Full name, address, and phone number to ship the corporate documents by a courier (DHL and FedEx).
Due diligence
We are required by law to keep the due diligence information on our internal file on the company directors and shareholders. This information will be kept safely and strictly secure in our offices and it will not be for public view.
- Due Diligence documentation. We will require a certified copy of passport (or other similar ID), an original proof of address and a bank or professional reference for each person indicated on the company order form. A proof of address is any recent document where the name and residential address of the person is indicated. A recent utility bill, landline telephone bill, credit card or bank statement or other similar document is suitable as a proof of address.
Please advise if you wish to proceed with the Isle of Man offshore company formation. We will send you the necessary forms. When your due diligence documents have been approved we will bill you. Offshore company formation takes about 3-5 business days after the fees are received.