Company registration on the Isle of Man

The Isle of Man is a jurisdiction that is located in the Irish Sea. The laws of the Isle of Man attract many international investors; the place is favorable for registration of airlines, aircraft, ships, etc. Learn more about the nuances of company registration from our specialists at IT-OFFSHORE. Since the beginning of 2019, new requirements have been put forward. It is necessary to show in the tax return that the new rules and regulations are met.

Legal forms and registration requirements

It is possible to choose the most appropriate form of company. The choice depends on the sphere of work of the organization and the goals of its opening. One of the most popular legal forms is LP. There are no requirements to the authorized capital; partners may be both individuals and legal entities, but their number is limited to 20. There is no taxation for firms that do not operate within the island. Reporting is required, but there is no need for regular data submission.

No start-up capital is required when establishing a Resident LLC. A minimum of 2 participants and a manager are expected in total. In case the company does not conduct business within the jurisdiction and does not have resident partners, no taxes are charged. It is allowed to use nominal service. One of the main requirements is to keep financial reports with the storage of documents in the office.

When opening a Private Limited Company, it is recommended to have the authorized capital of 2000 pounds. It is obligatory to have a secretary, shareholder, and 2 directors. It is also necessary to pay taxes, which constitute 20% of the net income from offshore territory. If there is no profit from the island, no tax is required.

When creating an NVM it is recommended to make a statutory contribution of £2,000. One director is required. Profits are taxable - the tariff is 20%. Registering a Hybrid Company requires 2 directors and one secretary. Profits derived from operating in the Isle of Man are subject to a 20% rate.

Registration requirements and conditions

You can't use Cyrillic letters in the name. When registering a company, it is mandatory to have a local registered office and a local registered agent. On average the size of the authorized capital is 2000 pounds.

The basic rate of tariff on profit for legal entities is 0%. There is also no tariff for capital gains and VAT. There is no currency control as well as no stamp duty. In some cases, the income tax rate may reach 20%, mainly when receiving income on the territory.

In total, at least one director is required for registration. There are no conditions regarding residency. The director can be either an individual or a legal entity. There are no conditions regarding the filing of accounting documents, and there is no open access to the accounts.