ISLE OF MAN Company Formation-Company Formation, offshore company formation, offshore company, limited company
Offshore Company formation – Company Formation Isle of man
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- Offshore Company Formation: Tax haven rankings
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Company Formation Isle of Man: Isle of man General
- Surface area: 572 m2
- Languages: English, Manx
- Currency: Pound Sterling (own bank notes)
- Inhabitants: 76,000
- Capital city: Douglas
- Inflation: 3 percent
- Unemployment: 1.6 percent
A jewel in the Irish Sea between Ireland and Great Britain, the Isle of Man is under the patronage of the British crown. In terms of foreign policy and defence the islanders rely on the British mainland just 100 kilometres away. Up until recent times, tourism and agriculture were the main source of income for the islanders. However, today more than 45,000 British companies in particular, generate 50 percent of the gross national product through their offshore activities. The government is thus placing strong focus on transforming the island into a financial centre.
By mid 2003 approx. 70 banks and financial companies and almost 200 insurance companies were established there. Bank deposits have grown in the past ten years by more than 400 percent to approx. 40 billion Euros. But the register of shipments in Douglas is also quite impressive. Tax exemptions, low costs and a one-time registration fee have attracted foreign ship-owners. Meanwhile, more than 200 ships with a tonnage of 5.2 million tonnes fly the Manx flag.
Tax advantages, membership of the Sterling monetary area and good connections with Great Britain are the driving force behind this development. The island belongs to the EU free-trade area and with the exception of foreign policy it is exempt from all aspects of the Rome treaties; it is entitled to determine and collect its own taxes.
- Currency controls: none
- Fiscal extradition agreement: none
- Political risks: none
- Legal system: Subject to British Common Law, company and tax law are regulated by the Company Acts of 1931 and 1974.
- Patent protection: Subject to British law
- Residence: For EU citizens no problem. One must provide evidence of approx. 50,000 pound cash income. The desired tax revenue is 10,000 pounds per annum. Each foreign national that purchases property on the island, must invest an additional 50 percent of the purchase price over ten years in government bonds that are not acceptable as collateral.
- Taxes: There is no property tax, inheritance tax, gift tax or capital gains tax for residents. Should tax at source be collected on the assets of residents outside the island, these can be credited against island taxes. Income tax for resident natural and legal persons is between 15 and 20 percent of net profits. Non Resident Companies pay a flat taxation of 750 pound on their profits. Corporate tax for trading companies has been reduced from 18 to ten percent.
Losses can be presented without time restrictions or transferred within a group and depreciable mobile assets can be written off immediately. A law on exempt companies has been in place since 1984. This provides additional incentives for companies, which only conduct offshore business, to trade or invest from the island. The Isle of Man does not levy taxes on property, capital, capital gains, gifts or inheritance. Likewise, there is no such thing as stamp tax. Value added tax is at a state imposed rate of 17.5 percent.
- Double taxation agreements: only for natural persons from Great Britain
- Living costs: same as Great Britain
- Communication: good
- Travel: Car: via Liverpool. In the summer there are other connections to ports on the British Isles. Flying: via London directly to the island airport Ronaldsway
- Companies: It is advisable to establish a Non Resident Limited Company that is taxed on a lump sum basis.
In recent years the island has grown to become one of the leading captive centres in the world. Highly attractive for insurance, with well in excess of 100 companies established there – paying an annual licence fee of 2,000 pounds and fully tax-free.
With further tax advantages the government is trying to coax existing non-resident companies currently trading offshore to establish themselves on the island.
Trusts are a specific feature of the Isle of Man. These may be established by non-residents for the usufruct of non-residents. Where the income of the trust is earned outside the island, there is no taxation obligation on the Isle of Man. The Isle of Man was the first offshore centre to be afforded a special status – under the British financial services law. Thus approved investment companies and shares in mutual funds on the island can be sold in Great Britain. The annual fee income of the Trust manager is tax free.
Company Formation Isle of Man: Complete packages (full service)
The following services are included in our complete packages:
Forming of the company, entry in the commercial register of the country, apostille, notarially certified translations of certificates into English, unless official language
- Nominee director: An attorney in the formation country will act as nominee director of the company (to the outside) and transfers all rights and obligations internally to the actual beneficiary (notarial deed of trust). The director does not have any account authority.
- Nominee shareholder: a tax office in the formation country will act as nominee shareholder (to the outside) of the company and transfers all rights and obligations internally to the actual beneficiary (notarial deed of trust).
- Domicile of the company in the formation country: deliverable postal address, availability by telephone, telephone and fax, mail forwarding service
- Account opening: bank account for the company at a renowned major bank in the formation country, internet banking, VisaCard and cheques. Only the founder of the company is authorized to have access to the account.
- General power of attorney to the founder: Only the founder receives a notarially certified general power of attorney for the company.
- Recommendation of a renowned tax office in the formation country, for book-keeping and accounting
- Internet-homepage of the company hosted on a server in the formation country: 5 pages for presentation of services/products, feedback form, imprint, e-mail address. May be extended at any time.