KNOWLEDGE BASE

KEY CORPORATE FEATURES
General
Type of Company Limited Partnership
Type of Law Common
Shelf company availability No
Our time to establish a new company 1 - 5 days
Corporate Taxation 0%
Double Taxation Treaty Access Only UK
General Partners
Minimum number One - Twenty
Local required No
Publicly accessible records Yes
Location of meetings Anywhere
Limited Partners
Minimum number One
Publicly accessible records Yes
Location of meetings Anywhere
Accounts
Requirements to prepare Yes
Audit requirements No
Requirements to file accounts Yes
Publicly accessible accounts No
Recurring Government Costs
Annual Return Filing Fee US$150
Other
Requirement to file annual return Yes

GENERAL INFORMATION

The Isle of Man, situated in the centre of the British Isles, is an internally self-governing dependent territory of the British Crown which is not and never has been, part of the United Kingdom. It is however, part of the British Isles. Tynwald, the Island's 1,000 year old Parliament, makes its own laws and oversees all internal administration, fiscal and social policies. External issues, such as foreign representation and defence, are administered on the Island's behalf by the UK Government and the Island makes an annual payment for these services.

As a British Crown dependency, the ultimate responsibility for the Island's good government is vested in the Crown but by long standing convention, the UK Government does not legislate for the Island except with the specific consent of the Island's Government. More information can be found at www.gov.im.

Population

The population of the Isle of Man is approximately 75,000.

Political Structure

Tynwald (Parliament), legislates on all domestic matters including taxation. Tynwald consists of two houses; the Legislative Council, which consists of eight Members, elected by the lower house, The House of Keys, and the Bishop and Attorney General, neither of whom has voting rights. The House of Keys has twenty-four Members who are elected and serve a five-year term. HM Queen Elizabeth II holds the title Lord of Man, and is ultimately responsible for the government of the Island, and all legislation passed by Tynwald has to have Royal Assent before being enacted.

Infrastructure and Economy

There are regular daily air and ferry services to the UK and Ireland.

The economy is in its 26th year of growth the key sectors being financial services and professional services, Banking generates around one quarter of the Island’s gross domestic product.

In the last few years new economic activities have been developed, such as aircraft registration and most significantly, e-gaming and other areas of e-commerce due to an infrastructure of world-class telecommunications and services which cater for the full range of modern corporate voice and data communication requirements.

The Isle of Man has been awarded Triple “A” Ratings from Standard and Poor and Moody’s.

Language

The official and spoken language is English.

Currency

The Manx Pound, which is on par with the UK Pound and freely exchangeable.

Exchange Control

None.

Type of Law

Common Law, based on English Common Law.

Principal Corporate Legislation

The Partnership Act 1909.
The Limited Partnership (Legal Personality) Act 2011 (effective 18th October 2011)

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PARTNERSHIP INFORMATION

Procedure to Incorporate

Submission of Form LP1 to the General Registry which includes the following details:

  • the firms name (if the limited partnership is to have a legal personality, the name must end with "Incorporated" or "Inc"
  • the general nature of the business
  • the principal place of business
  • the full name of each of the partners
  • the term, if any, for which the partnership is entered into, and the date of its commencement
  • a statement that the partnership is limited, and the description of every limited partner as such;
  • in respect of such classes of limited partnerships as may be prescribed by regulations made by the Treasury, the sum contributed by each limited partner and whether paid in case of how otherwise
  • the name and address of the person appointed to accept service on behalf of the limited partnership
Restrictions on Trading

Limited Partnerships are not permitted to:

  • Undertake banking or insurance activities or any other activity that might suggest an association with same, without a licence
  • Undertake investment business other than the investment of the partnership's own assets without a licence.
Powers of Company

Under The Limited Partnership (Legal Personality) Act 2011 any new limited partnership, registered under the Partnership Act 1909 has the option of adopting a legal personality that is separate from that of its partners. Existing limited partnerships have six months from 18th October 2011 to make an election to continue existence as limited partnerships with separate legal personality.  (The limited partnership with legal personality is a body corporate with perpetual succession and unlimited capacity and has legal personality separate from that of its partners).

An existing Isle of Man Limited Partnership which does not elect to continue as a separate legal personality does not constitute a legal person under Manx Law.

Language of Legislation and Corporate Documents

English.

Registered Office Required

Limited Partnerships must maintain a registered office in the Isle of Man.

Time to Incorporate

One to five days, subject to name approval.

Name Restrictions

A name that is similar to or identical to an existing partnership. A name that is known to exist elsewhere. A name that implies illegal activities. A name that implies royal or government patronage.

Language of Name

Names can be expressed in any language using the Latin alphabet, if the Registrar of Companies is in receipt of an English translation and the name is not considered undesirable.

Names Requiring Consent or Licence

The following names or their derivatives require consent or a licence: bank, building society, savings, loans, insurance, assurance, reinsurance, co-operative, council, Chamber of Commerce, trust, municipal and finance or their foreign-language equivalents.

Suffixes to Denote Limited Liability

LP, Incorporated or Inc dependent on wether the partnership has elected to have a separate legal personality.

Disclosure of Beneficial Ownership to Authorities

Yes.

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PARTNERSHIP COMPLIANCE

Taxation

Limited partnerships are not taxed in the Isle of Man; instead it is the partners thereof that are taxed on their share of the Partnership’s profits. If the partnership does not trade in the Isle of Man and if a partner is not resident in the Isle of Man for tax purposes then the partner will not be taxed.

VAT

Isle of Man partnerships may be registered for VAT purposes and the VAT prefix will be "GB", which is recognised in Europe.

Double Taxation Agreements

Apart from a limited treaty with the United Kingdom, the Isle of Man is not party to any double tax treaties.

Financial Statements Required

Whilst there is no requirement to file financial statements with the authorities, it is important to note that a partnership is required to keep financial records, which reflect the financial position of the partnership and to retain underlying documentation for at least six years..

If accounting records are kept at a place outside the Isle of Man they must be sent to the company's registered office in the Isle of Man at not less than 6 month intervals.

Failure to maintain accounts or make them available for inspection at a company's registered office is an offence punishable by imprisonment or a fine.

The Assessor of Income Tax reserves the right to call in the financial records for inspection.

General Partners

The minimum number of general partners is one; they may be of any nationality or residence. Bodies corporate may be appointed as general Partners. The maximum number of partners is twenty unless it is carrying on business as advocates, accountants or members of a stock exchange. General Partners are responsible for all debts and obligations of the partnership.

Limited Partners

A Limited Partner is required and can be a natural person but may be of any nationality and reside anywhere in the world or a body corporate. A limited partner is liable for the debts of the partnership only up to the amount contributed.

Other Tax Planning Entities

Other business entities used for international tax planning include:

  • Hybrid Companies
  • Private Limited Companies
  • Limited Liability Companies (LLC)
  • New Manx Vehicle Companies (NMV)
  • Trusts
  • Foundations

Further information on these alternative structures is available on request.

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HOW TO PROCEED

A bespoke 'offshore' solution can be complex and requires careful planning and execution. We therefore encourage our clients to contact us directly, without obligation, for a Free Initial Consultation.

Our experienced consultants will gladly assist with advice on how to approach your particular challenge.

To make contact with a consultant at one of our offices who speaks your language, click here for a full list of our office contact details.


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