Obtaining a license for binary options on the Isle of Man
A license issued on the Isle of Man combines all gaming as well as Binary Options.
Gambling licenses on the Isle of Man are subdivided into the two types:
- Basic (Full License);
The full license allows the company to earn on all available games independently and sell sublicenses to other companies wishing to enter the gambling market in Europe under the name of the existing company.
A sublicense allows to operate legally, but on behalf of another, larger licensed company.
Isle of Man licenses cover all of the following activities:
- P2P games (like poker and bingo);
- Casino games, including slots;
- Live dealer games;
- Betting platforms;
- Financial exchanges;
- Binary options;
- Cyber sports betting;
- Lotteries, including messengers and resellers;
- Mobile, desktop, and tablet versions.
The following tax rates apply to financial companies on the Isle of Man:
- 0% - corporate tax for residents;
- 0% - on capital gains;
- 0% - dividends, royalties.
The gambling fee on the Isle of Man is calculated based on profits, not turnover. The state fee is paid at either "rates minus winnings" or "retained earnings," depending on the type of the gaming activity.
Gaming fee rates:
Gross Gambling Profits (GGY) (million).
<£20m - 1.5%
> £20m - < £40m - 0.5%
> £40 million - 0.1%
There is no requirement to contribute to the authorized capital of the company on the Isle of Man.
Requirements for the license applicant are the following:
- Presence of a local office on the Isle of Man;
- Presence of minimum 2 local directors;
- Local MLRO.
A licensed company is also expected to meet the following requirements:
- Preparation and maintenance of all regulatory documentation;
- Completion of monthly tax returns;
- Preparation of annual financial statements and audit;
- Ongoing administration of the company.
Timeframe: 3-4 months.