Isle of Man

The Island is a dependency of the British Crown and recognises the monarch as Head of State, it is not however part of the United Kingdom and has its own parliament.

For companies, the Isle of Man operates a zero rate tax regime. There are provisions for preventing the avoidance of tax by residents through holding assets within companies they own. Certain finance sector companies operating on the Island pay tax at a rate of 10%. There is a double taxation treaty with the United Kingdom. The European Savings Tax Directive applies in the Isle of Man and individuals resident in a country covered by the Directive and receiving savings interest from an Isle of Man source have the option of paying a withholding tax, failing which the income is reported to the tax authorities in their home country.

The finance sector in the Isle of Man is governed by the Financial Supervision Commission, an independent statutory body established in 1983 and responsible for the licensing and supervision of banks, building societies, investment business, collective investment schemes and companies which provide company and trust administration services. It is also responsible for the Companies Registry.

Companies can be formed in the Isle of Man in one of two ways. The Companies’ Act 1993-2004 and the Companies’ Act 2006.  The information below refers to the old law.

Isle of Man offshore company regulations
Type of entity Limited by shares, Guarantee, Hybrid and LLC
Type of law Common
Corporate taxation Zero rate on activity outside IOM
Double taxation treaties available UK
Share Capital
Usual currency GBP
Permitted currencies Any
Minimum paid up GBP 2
Usual authorised GBP 2,000
Minimum number 2
Local resident required No
Records publicly available Yes
Corporate Director allowed No
Shareholders / Members
Minimum number 1
Records publicly available Yes
Location of Meetings Anywhere
Company Secretary
Required Yes
Local or qualified No
Required Yes
Audit required No – Except in certain circumstances
Filing required Yes
Publicly available No
Annual return required Yes
Change of domicile permitted Yes
Availability of shelf companies No
Time to incorporate shelf co N/A
Time to incorporate new co 1-2 working days