 |
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Type
of entity: |
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Private Limited |
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Type
of law: |
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Common |
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Shelf
company availability: |
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Yes |
|
|
Our
time to establish a new company: |
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1
– 5 days |
|
|
Minimum
government fees : |
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£250 |
|
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Corporate
taxation: |
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0%
- 10%
|
|
|
Double
taxation treaty access: |
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Only
UK |
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|
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Standard
currency: |
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GBP |
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Permitted
currencies: |
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Any |
|
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Minimum paid up: |
|
1 |
|
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Usual authorised : |
|
2,000 |
|
|
|
|
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Minimum
number : |
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2 |
|
|
Local required : |
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No |
|
|
Publicly accessible records : |
|
Yes |
|
|
Location of meetings
: |
|
Anywhere |
|
|
|
|
Minimum
number: |
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1 |
|
|
Publicly
accessible records: |
|
Yes |
|
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Location
of meetings: |
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Anywhere |
|
|
|
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Required: |
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yes |
|
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|
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Requirement
to prepare: |
|
Yes |
|
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Audit Requirements : |
|
Yes,but
with some exceptions |
|
|
Requirement
to file accounts: |
|
Yes |
|
|
Publicly
accessible accounts: |
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No |
|
|
|
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Requirement
to file annual return: |
|
Yes |
|
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Change
in domicile permitted: |
|
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 branches, known as the Upper and Lower. The Legislative Council, (Upper) consists of ten Members and is elected by the lower house, Members include the President of Tynwald, the Lord Bishop of Sodor and Man, HM Attorney General and HM Queen Elizabeth II. The House of Keys, (Lower) 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 governance of the Island. 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 Isle of Man, confronted with a decline in its two principal sources of income, agriculture and tourism, now places greater reliance upon industrial investment and its financial centre activities.
» 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 Legislation
The Companies Acts 1931 to 2004
COMPANY INFORMATION
»Type of
Company for International Trade and Investment
The Private Limited Company must have two directors
who must be natural persons but may reside anywhere in the world.
»Procedure
to Incorporate
Submission of Memorandum and Articles of Association,
together with "Form I " nominating the first directors
and secretary, and advise of the situation of the Registered
Office and the form giving name approval.
» Restrictions
on Trading
Private Limited Companies 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 company's own assets without a licence.
- Neither solicits funds from the public nor offer their shares
or membership to the public without a licence.
» Powers of Company
An Isle of Man company has all the powers of a natural person.
» Language
of Legislation and Corporate Documents
English.
» Registered
Office Required
Companies must maintain a registered office in the Isle of
Man.
» Shelf Companies
Available
Yes.
» Time to Incorporate
One to five days, subject to name approval.
» Name Restrictions
- A name that is similar to or identical to an existing company.
A name that is known to exist elsewhere. A name that implies
illegal activities. A name that implies royal or government
patronage.
- Many names require justification or high capitalisation
to allow use.Word such as "International","European"
or other words indicating an international presence will only
be approved if the company is incorporated with an authorised
capital of 100,000,which must be paid up.
- Use of the words "Trust", "Trustees"
or "Fiduciary" will only be approved if the company
is incorporated with an Authorised capital of 250,000, which
must be paid up.
- Use of the word "Holdings" will only be approved
if the company can provide documentary evidence that it holds
51% or more of an underlying company within six months of
the incorporation date.
- Use of the word "Group" will only be approved
if the company can provide documentary evidence that the company
owns a group of companies.
» 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
Limited or Ltd.
» Disclosure of Beneficial
Ownership to Government Authorities
The identity of the beneficial owners of the Isle of Man Company
may remain confidential if corporate shareholders are engaged
to act as the shareholder on behalf of the ultimate beneficial
owners. This confidentiality is maintained as long as the company
and its ultimate beneficial owners are not involved in any criminal
activity.
Compliance
» Authorised and Issued
Share Capital
Private Limited Companies have a minimum authorised share capital
of £2000 or its currency equivalent, this being the maximum for
the minimum capital duty payable upon incorporation.The minimum
issued capital is one share of the par value.
» Classes of Shares Permitted
Private limited Companies may have registered shares, preference
shares, redeemable shares and shares with or without voting
rights.
» Taxation
With effect from 6th April, 2006 Private Limited Companies normally pay income tax at 0% and there is no withholding tax on payments of dividends to shareholders.
Companies that are in the business of banking, insurance or
are connected with the business of Isle of Man property pay
corporation tax at a rate of 10% and a withholding tax at the
same rate is imposed if the dividend is paid to a non resident
individual or corporate body.
With effect from 6th April, 2006 all Private Limited Companies pay an annual charge of £250
» VAT
Isle of Man Companies may be registered
for VAT purposes and the VAT prefix will be "GB",which
is recognised in Europe. Foreign companies may be registered
on the "F" register in the Isle of Man and then apply
for VAT registration.
» 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 audited
financial statements with the authorities, it is important to
note that a company is required to keep financial rerecords,which
reflects the financial position of a company.
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 no
less than 6 months 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.
» Directors
The minimum number of directors is two, they
may be of any nationality or residence. Bodies corporate may
be appointed as directors.
A company secretary is required and must be a natural person
but may be of any nationality and reside anywhere in the world.
The minimum number of shareholders is one.
Other Tax Planning Entities
Other business entities used for international tax planning include:
- Hybrid Companies
- Limited Liability Companies(LLC)
- New Manx Vehicles Companies(NMV)
- Partnerships
- Trusts
Further information on these alternative structures are available on request.
Information Downloads
Disclaimer
Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. OCRA Worldwide does not accept any responsibility, legal or otherwise, for any errors or omission.
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