Isle of Man Company Formation Overview
The Isle of Man has certain legal features: it is not part of the UK or the EU, has its own legislative and tax system, one of the oldest parliaments in the world, and the UK is responsible for foreign policy and defense.
Registering a company on the Isle of Man offers many advantages for doing business, as the island has signed customs agreements with the UK, and exports of goods to the EU are subject to the internal rules of this zone (without customs duties).
Time to register a company
to 2 days
Average register a company timeline
Authorized capital
£2,000 is recommended
The registered capital
Tax rate
0%
Сorporate tax rate
This jurisdiction is most often chosen for opening a trading company and expanding operations. In addition, this island is of interest to those involved in gambling, but before doing so, it is necessary to obtain a license from the Gambling Supervision Commission (GSC). Financial and insurance companies must be licensed by the Isle of Man Financial Services Authority (FSA).
The main regulatory documents governing company registration requirements are the Companies Act 1931 and the Companies Act 2006. The jurisdiction values its reputation and therefore has strict FATF rules, complies with EU directives (AML/KYC) on illicit enrichment, and has adopted the Income Tax (Maintenance Requirements) Order 2018 to combat tax evasion by companies.
Country information: Isle of Man
| National currency | Pound sterling (GBP) |
| Official language | English |
| Credit rating | A |
Advantages of Company Registration in the Isle of Man
Cost optimization.
The jurisdiction is attractive due to its tax system, which does not include such key taxes as corporate tax, capital gains tax, and stamp duty.
Development of business relations.
Information technology and financial services are well developed, and businesses are provided with all the necessary technical and infrastructure conditions. Many companies seek to register on the Isle of Man because of the opportunity to enter the EU and UK markets on favorable terms.
Support for innovative businesses.
The state supports the development of innovative technologies, blockchain and cryptocurrencies, and the gambling industry. Incubators are being created, grants are being provided to start-up entrepreneurs, and a support program for gambling entrepreneurs is in place.
Fast registration.
The jurisdiction requires AML/KYC procedures to be completed and all identification documents to be provided, but once a complete set of documents has been submitted, online company registration takes several days (48 hours).
Ready to Start Your Company in the Isle of Man ?
Our experts will accompany you at every stage of the opening process, ensuring its smoothness and efficiency.
Requirements for opening a formation in the Isle of Man
Minimum requirements for organizational structure.
The company must have at least one director and one owner (depending on the type of company); a secretary is not required.
Company name.
Requirements include uniqueness, no reference to government agencies, and the presence of abbreviations at the end of the name: Ltd, PLC, Inc.
Legal address.
When applying for registration, the company indicates its legal address at this location. In addition, all financial documents of the company (minutes of meetings, register of owners, founding documents) must be stored at this location, and official notifications will be sent there.
Financial report.
Even if the company has not been active, it is required to file an accounting and tax return for the year. The recommended initial capital is £2,000 (but not mandatory).
Presence of an agent (resident).
The cost of registering a company on the Isle of Man includes the need for annual renewal of registration with an agent and the regulatory authority. According to the Companies Act 2006, a licensed agent is required to register a company.
Corporate information
| Ready-made companies are available for purchase | Yes |
| Legal system | Based on English common law |
| Use of Cyrillic characters in company names | No |
| Local registered office required | Yes |
| Organizational and legal forms | Private limited company, public limited company, limited liability company |
| BPA in the company name | Limited liability company (LLC) |
| Local registered agent required | Yes |
Process for Opening a Company in the Isle of Man
The registration process in this jurisdiction is quick—up to 2 days—and consists of several stages:
Selecting the type of company to be registered
When registering a company on the Isle of Man, you can choose one of the following types of companies: LP, LLC, NMV, PLC, and hybrid. Before choosing a company type, familiarize yourself with the requirements: they vary in terms of the number of directors, secretary, reporting, and share capital.
Name
When choosing a suitable name for your business, you must take into account legal restrictions, namely:
Preparing the information
Before submitting your application, you need to check that you have all the necessary documents:
Submission of application to the Registrar
The application is submitted online via the website; the registration fee depends on the registration period and ranges from £100 to £500.
License
Certain activities, such as gambling, financial and insurance services, require a license.
Corporate Account
One of the requirements for certain types of structures is to have a bank account on the island. Only a company registered on the island can open an account, and only with confirmation of registration from the tax office.
Taxes
After receiving a certificate of company registration, you must register with the tax office.
Documents required to register a company in the Isle of Man
In accordance with the Companies Act 2006 and the Companies Act 1931, the basic list of required documents includes:
- application for registration;
- proof of payment of the state fee;
- certificate of name reservation;
- Memorandum and Articles of Association, or in the case of a partnership, a Partnership Agreement;
- passport details of directors and founders with proof of residence;
- order appointing the manager/director;
- Minutes of the shareholders’ meeting;
- confirmation of the company’s address in the jurisdiction;
- business plan describing future activities.
Ready to Start Your Company in the Isle of Man ?
Our experts will accompany you at every stage of the opening process, ensuring its smoothness and efficiency.
Types of companies in the Isle of Man
Mauritius offers businesses a wide range of organizational structures. The law allows for 100% foreign Based on the Companies Act 2006 and the Companies Act 1931, investors who decide to open a business on the island can choose one of the following legal forms:
Closed joint stock company (OJSC):
- The company must be managed by two directors (no residency requirements), one shareholder, and a secretary.
- No initial capital is required, but £2,000 is recommended.
- An annual audit is required.
- Income earned outside the jurisdiction is not taxable.
Limited Liability Company (LLC)
- No start-up capital requirements.
- One manager and two owners.
- A financial report is required, the records of which are kept at the local office.
- For trusts, banks, and insurance companies, a license is mandatory.
Limited partnership (LP):
- No initial capital required, no reporting required.
- Number of partners from 1 to 20.
- No taxation when operating outside the island and non-residency.
New Motor Vehicle of the Isle of Man (NMV):
- The business must be managed by one director.
- Financial reporting and auditing are mandatory.
- The company must have at least two managing directors and one secretary.
- One shareholder.
- Financial statements must be submitted and audited.
Director and secretary
| Minimum number of directors | 1 |
| Residency requirement for directors | No |
| Director of legal entities permitted | Yes |
| Information provided to local agent | Yes |
| Information disclosed in the public register | Yes |
| Secretary required | Yes |
| Residence requirement for secretary | No |
| Qualification requirements for secretary | No |
| Legal entity as secretary | Yes |
Isle of Man Companies Legislation
Legislation relating to registration, activities, licensing, and taxation is available on the official website of the government and the Attorney General’s Office.
The main legislative acts include:
– The Companies Acts 1931 and the Companies Act 2006, which specify the types of companies, requirements for their structure and registration.
– The Income Tax (Content Requirements) Order 2018, which regulates taxation in this jurisdiction.
– Electronic Transactions (General) (Amendment) (No. 2) Regulation 2020 – rules for companies to conduct transactions.
– The Company and Business Names (Restricted Words and Phrases) Regulations 2013 regulate the structure of company names.
Taxation in the Isle of Man
The Isle of Man is attractive for its tax rates, which include:
- 10% corporate tax for companies with a banking license and income over £500,000.on. Fees are paid quarterly. Companies are also audited and submit financial statements to the FSC.
- 0% corporate tax;
- No income tax or stamp duty;
- 20% VAT;
- 20% on income derived from property management on the island;
Taxation
| VAT | 20 |
| Basic corporate tax rate | 0% for most businesses; 10% for the banking sector and retail trade |
| Capital gains tax capital | None |
| Exchange control | No |
| Detailed information on corporate tax rates | No capital gains tax or inheritance tax |
| Stamp duty | Yes |
Shares and share capital
| Standard currency for shares | Pounds sterling/US dollars |
| Beneficiary information disclosed | No |
| Minimum issued capital | 1 pound sterling |
| Bearer shares permitted | No |
| Authorized capital | £1,000 |
| Terms of payment of capital | No restrictions |
| Nominal value of shares | £1 |
| Possibility of issuing shares without par value | Yes |
Shareholder and beneficiary
| Minimum number of shareholders | 1 |
| Data entered in the public register | No |
| Residency requirement for shareholders | No |
| Beneficiary information disclosed | No |
| Beneficiary information disclosed to local agent | No |
| Legal entities are permitted as shareholders | Yes |
Reporting
| Reporting required | No |
| Open access to reports | No |
| Mandatory audit requirement | No |
| Annual declaration required | Yes |
| Public access to annual report | No |
| Reporting requirements | No |
Trademark registration
| Comprehensive TM training fee | £150 |
| Trademark registration fee | £300 |
| Trademark registration certificate fee | £350 |
| Additional registration fee per class | £250 |
FAQ about a Company formation in the Isle of Man
How do I set up a company in the Isle of Man?
Company registration can be completed within a few days or even hours after submitting all documents and paying the fees.
How much does it cost to set up a company in the Isle of Man?
The cost of setting up a company depends on the type of company being registered. The amount of the fee can be found on the Registrar’s website.
How long does it take to register a company in the Isle of Man?
Standard company registration takes two days, but if you pay a higher fee, your business can be registered in as little as 2 hours.
Why do companies set up in the Isle of Man?
This jurisdiction is attractive to businesses because of its numerous advantages, including minimal tax charges, the ability to trade with the EU without paying customs duties, the legalization of gambling, and the use of cryptocurrencies.
What are the requirements for an Isle of Man company?
In accordance with local legislation, the Companies Act 1931 and the Companies Act 2006, the requirements for companies vary depending on the type of company, but the main ones include: identification of managers and owners, a mandatory registered office on the island, and a licensed agent.
