1 GBP = 1,28 USD
The Isle of Man is a British crown ownership. Its legal system is based on English common law.
Benefits of registering an enterprise in the Isle of Man:
- a favorable geographical location close to the UK, Europe;
- a free trade regime with the UK;
- a simplified reporting system;
- no control over foreign exchange transactions;
- no residency requirements for directors/shareholders;
- a tax rate on income, received in the EU is 0%.
Profitable sectors of the economy:
- Tourism industry;
- Resident LLC;
- New Manx Vehicle (NMV);
- Hybrid Company.
To register an LP in the Isle of Man:
- No requirements for an authorized capital;
- Partners can be legal entities and individuals (from 1 to 20);
- No taxes for organizations, that do not have resident partners, don’t conduct activities within the island;
- No need for regular reporting, but not for maintaining them;
- A name must end with “LP”.
To establish an Isle of Man Resident LLC:
- A starting capital is not regulated;
- Minimum 2 shareholders and 1 manager are required;
- A tax is not charged with companies, that do not conduct business in this jurisdiction and do not have resident partners;
- A financial reporting is mandatory followed by storage at a corporate office;
- A name must end with “LLC”.
To open a PLC in the Isle of Man:
- A recommended share capital is 2,000 GBP;
- 1 shareholder, 2 directors, 1 secretary;
- An income tax, that is received in this jurisdiction, is 20%.
To open an Isle of Man NMV:
- A recommended authorized contribution is 2,000 GBP;
- 1 director;
- Profits are taxed at 20%;
- A name ends with “Limited”, “Corporation”, “Incorporated”.
To set up a Hybrid Company in the Isle of Man:
- 2 directors, 1 secretary;
- Profits earned in the Isle of Man are taxed at 20%;
- Issuance of shares with/without voting rights, privileged and ordinary.
The Isle of Man has a strong banking sector and provides a safe place for investment. With 15 banking groups, deposits of 35 billion GBP, this state specializes in providing banking services to international corporations, including commercial lending to British companies and British real estate.
Banking is regulated in accordance with recognized international standards for banking supervision and AML/CFT.
In 2016, an alternative banking regime was introduced to attract private banks, branches of foreign enterprises, representative offices to the island.
The annual report
Enterprises, registered in this jurisdiction, must submit an annual income statement, for which the director is responsible.
If you register a company in the Isle of Man, you will not need to check your accounts, if:
- annual turnover does not exceed 5б6 million GBP;
- book value of not more than 2б8 million GBP;
- the average number of employees does not exceed 50.
Each tax return must be prepared and filed with the Treasury of the island.
Isle of Man participation fee
- 3590 EUR (this includes a company registration, state fees, the annual registration, a registered agent, a secretary, an office, management fees);
- 3,190 EUR + VAT (including a registered agent, a secretary, an office, management fees);
- A delivery of documentation by DHL or FedEx is paid additionally.
A registration period is from 5 days.
Pay attention: Currently, business relations on the island are in transition of December 31, 2020, while the EU and the United Kingdom agree on new agreements. New rules will enter into force on January 1, 2021.
If you are interested in setting up a company in this jurisdiction, request for personal advice on registering companies on the Isle of Man from competent IQD Consulting experts.