Isle of Man Company Formation

Introduction to Registering a Company in the Isle of Man

The Isle of Man is located in the Irish Sea, between Ireland and Great Britain and is a self-governing kingdom; a British Crown dependency which does not belong either to the UK or the EU. Anyone looking for an Isle of Man offshore company formation can rest assured as the Isle of Man definitely deserves its reputation for being one of the most stable and secure offshore havens in the world.

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0% Corporation Tax

The Isle of Man has strong banking, financial services sectors, manufacturing, tourism that contribute to the Gross Domestic Product (GDP). Foreign Investors are attracted by the taxation structure; there are no capital gains taxes, turnover tax or capital transfer tax, no stamp duties and low rates of income tax. The Isle of Man is not a full member of the European Union but has associate status which allows Island-traders free trade with the rest of the community but no liability for financial contributions or eligibility for EU grants. Consequently, the Isle of Man can be an ideal location to register a trading company requiring a genuine EU VAT number but also wanting full corporate tax exemption.

Advantages to Isle of Man Company Registration

  • 0% Corporate Tax – As long as your company is not a property company or retailer earning more than £500,000 in the Isle of Man (which are taxed at 10%) there is a zero rate of corporate tax
  • Dividends to non-residents are taxed at 0%
  • No Capital Gains Tax – There is no tax to be paid on capital gains derived from the sale of any holdings
  • No Inheritance Tax – Making it a very tax-efficient way of owning property
  • No Withholding Tax is due on dividends payable to shareholders.
  • Double tax relief is available for foreign tax paid
  • Political and economic stability
  • Long established legal system

Types of Company

The Isle of Man operates two different streams of corporate entities, usually discussed to as 1931 Act and 2006 Act companies.

  • The 1931 Act company is a traditional corporate entity and is subject to many operational and filing requirements.
  • The 2006 Act company is a more up to date entity specifically designed to allow more flexibility in its operation while still maintaining appropriate safeguards.

Under both the 1931 and 2006 Companies Acts there are a variety of types of company available:

  • Company Limited by Shares – The most used company where the liability of its members is limited to the amount unpaid on shares they hold.
  • Company Limited by Guarantee – Such companies have no fixed capital and no shares. The members’ liability is limited to the amount they have agreed to contribute.
  • Unlimited Company – This company is like a civil law partnership and its use is usually limited to situations where a corporate personality only is required. The company has a share capital, but there is no limit to the liability of the members.

How can I get more information on registering a company in the Isle of Man? will be pleased to discuss your Isle of Man company incorporation matters in greater detail. We can assist you with a full range of services including company registration Isle of Man, Bank Account, VAT Registration, Management fee and Accountancy Services.

Our fees to set up a company in Isle of Man are very competitive.

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