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Requirements for company registration in the Isle of Man

Features for opening a company in the Isle of Man

30. 11. 2022
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The Isle of Man is a globally-recognized international and financial center, which is ideal for the offshore activity. Businesses registered in the Isle of Man do not pay corporation tax unless they are engaged in real estate or retail trade with profits of £50,000 or more. Dividends that are paid to foreigners are also not taxed. Also, one does not have to pay capital gains, inheritance fees, etc. Company registration in the Isle of Man is quick and easy, which also speaks in its favor.

Pecularities of doing business in the Isle of Man

The Isle of Man is a territory that is owned by the British Crown but formally is not part of Great Britain and is not a colony. The island has a legislature and its own legal and tax systems. However, it does not have an independent foreign policy. It is subordinate to Britain, and accordingly, it is not a member of the EU.

The advantages of opening a company in the Isle of Man include the following:

  • Savings on taxes. There is no corporate tax on capital gains, turnover, transfer of capital, and stamp duty. There are also low tax rates on profits.
  • Stable economic regulatory framework.
  • Advanced banking sector.
  • Developed financial services and tourism.

The company registered in the Isle of Man can trade with other EU countries without customs and other charges due to the associated status. For the same reason businesses can apply for EU subsidies. Thus, the jurisdiction is great for companies that focus on the EU market but want to save on taxes and other fees.

Requirements for LLC registration in the Isle of Man

Businesses with foreign capital can open a limited liability company in the Isle of Man. To do so, the following conditions must be met:

  • Choose a unique name.
  • Hire a registered agent who must be a resident of the Isle of Man.
  • Appoint two directors - residents of other countries are allowed.
  • Appoint a secretary, either an individual or an entity. One of the directors may act as a secretary.
  • Prepare constituent documents.
  • Rent a physical office. The legal address must be specified during registration.
  • Open a bank account on the island and provide a share capital of £2000. It can be divided into 2000 shares, each worth £1.
  • Regularly file an annual declaration. This will confirm that the company will continue to operate without changing the characteristics specified in the founding documents. 

To increase confidentiality, the investor can appoint a nominee director or shareholder. When they are replaced in the course of business, it will be necessary to pay the appropriate fee. If the changes occurred within 3 months of registration, the fee is lower.

To receive benefits, the company must operate outside the country. It is obliged to submit a financial report regularly, otherwise, there is a penalty. There is a fee for submitting an annual declaration, which depends on the form and area of business. Organizations registered as charities pay more than commercial ones. If an organization refuses to file a declaration, there may be a legal risk against the directors or removal from the Companies Registry.

Instructionos for opening a business in the Isle of Man

To open an offshore company in the Isle of Man, you need to follow these steps:

  • Register a name.
  • Apply for opening a business to the Isle of Man Companies Registry within 48 hours after the approval of the name. It must be accompanied by a set of incorporation documents and a receipt for the registration fee of £10. You also need a unique booking number, which is issued when the name is registered.

The regulator will review the documents. If everything is in order, they will register the company issuing a certificate of registration. The firm will be given a unique business number, and the details of the registration will appear in an updated public online registry.

How to open an offshore in the Isle of Man

To register a business in the Isle of Man in 2023 contact IT-OFFSHORE experts.

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