Isle of Man companies offer no corporation tax and privacy
An Isle of Man company can offer many benefits. As an English speaking jurisdiction, it has a fast and efficient company registry. The Isle of Man company can offer similar benefits to companies formed in more exotic locations.
The Isle of Man is located in the Irish sea. It’s a self-governing territory under the protection of the British. It has a population of 85,400. The Isle of Man has good infrastructure and over 150 flights every week to the UK and Ireland.
When you form an Isle of Man company you’ll be well placed to trade in the EU and the UK. Isle of Man companies can be registered for VAT for trading throughout Europe and reclaim VAT on purchases from European businesses.
NO CORPORATION TAX ON PROFITS OUTSIDE ISLE OF MAN
The single biggest advantage when you incorporate an Isle of Man company is there is no corporation tax. Corporation tax is rising in the UK. Other jurisdictions, including neighbouring Ireland have recently agreed to a minimum corporation tax of 15%. An Isle of Man company trading outside the Isle of Man will have zero corporate tax liability. Even companies trading within the Isle of Man will have limited tax liabilities. Only banks and some retailers operating o the island are taxed at a rate of 10%.
FAST INCORPORATION
Many offshore jurisdictions can be slow to incorporate. Not Isle of Man companies, though. Normally incorporation of an Isle of Man company takes 2-3 days. It’s possible to get a same day incorporation when documents are submitted to the companies register before 2.30pm. This is a huge advantage if you need a fast offshore company. Isle of Man may well be the only offshore jurisdiction to offer super-fast incorporation of offshore companies.
RESPECTED JURISDICTION
The Isle of Man is a respected international jurisdiction for financial services. It’s home to many international financial institutions. The major UK banks all have branches there. The Isle of Man is also a popular jurisdiction for insurance companies.
ONLY 1 DIRECTOR REQUIRED
Keeping things simple is always good. When you form an Isle of Man company onle one director is required. The director doesn’t have to be resident in the Isle of Man. It’s also possible to have a corporate director. This can help with confidentiality with your Isle of Man company.
ENGLISH SPEAKING JURISDICTION
The Isle of Man is an English speaking jurisdiction. This will be a benefit to some. It makes for easy dealing with banks and agents for your business. The Isle of Man is also part of the UK postal system so mail will reach the Isle of Man in 24 hours from the rest of the UK.
NO ANNUAL ACCOUNTS NEED TO BE FILED
Annual accounts don’t have to be filed for an Isle of Man company. Accounting records do have to be kept and be kept at the registered office. These accounts are not available to the public. Nobody will be able to see information on the dealings of your Isle of Man company.
NO WITHHOLDING TAX ON DIVIDENDS
Dividends can be paid to individual and corporate shareholders of an Isle of man company without any withholding tax. There’s no restriction on remitting the profits from your Isle of Man company anywhere in the world.
INTERNATIONAL BANKS ON ISLE OF MAN/PART OF UK BANKING SYSTEM
Banks on the Isle of Man are part of the UK banking system. This means you can make instant payments from your Isle of Man company to an account in the UK. Major banks with branches in the Isle of Man include Santander, Barclays, HSBC and Lloyds. You should have no difficulty opening a bank account for an Isle of Man company.
SHAREHOLDER INFORMATION NOT PUBLIC
The only filing requirement for an Isle of Man company is an annual return. This must be filed once per year. It contains basic information about the company. It must include details of the company’s directors. No shareholder details need to filed publicly, meaning ownership can be kept confidential.
CONCLUSION
An Isle of Man company is a good option as an offshore vehicle. It offers the benefits of a UK company without the tax liability. Isle of Man companies are less likely to run into trouble with banks and other counterparties as the Isle of Man is considered a well-regulated jurisdiction despite the offshore benefits it offers. For anyone trading in Europe it may be hard to beat the advantages of an Isle of Man company.
CAN ANYONE SET UP A COMPANY IN ISLE OF MAN?
Yes, it’s open to everyone. You don’t have to be a resident to set up a company in the Isle of Man.
WHAT COMPANIES ARE BASED IN THE ISLE OF MAN?
Many major banks and insurance companies have branches in the Isle of Man. These include Barclays, Santander and HSBC.
WHY DO COMPANIES REGISTER IN ISLE OF MAN?
There is no corporation tax in the Isle of Man. It’s also part of the UK banking system and has good communication links with the UK and Ireland. You can also register for VAT for trading in the EU.
HOW MUCH DOES IT COST TO SET UP A COMPANY IN ISLE OF MAN?
That will depend on a few variables such as whether you want to use nominee directors. It’ll be around $2,750. Contact us here for a personalised quotation.