A guide to the Isle of Man company incorporation process

The favourable tax regime of the Isle of Man makes it an attractive base from which to conduct business. The law is similar to that of England and Wales, but the island is self-governing and does not form part of the UK.

Benefits of registering a company in the Isle of Man

The benefits of incorporating a company in the Isle of Man include 0% corporation tax for most companies, excluding the insurance and banking industries and income from local real estate, and no capital gains tax, withholding tax, inheritance tax or stamp duty land tax.

The island is a reputable centre for business with excellent facilities and unrivalled telecommunications networks. As such, it is ideally placed for organisations that wish to trade or invest overseas.

It is not necessary for the company’s directors to be resident in the Isle of Man or to hold company meetings there, making it a flexible option for businesses wishing to take advantage of the tax benefits.

Forming a company on the Isle of Man

Although a director does not have to be resident on the Isle of Man, a company must have a registered officer or agent there. This person must be licensed by the Isle of Man Financial Supervision Commission to act as a registered agent.

The company must also have a registered office based in the Isle of Man.
At least one company director must be appointed, but a company secretary is not essential. At least one shareholder must also be registered.

An annual return and tax return should be filed every year. Company meetings should be held in accordance with legislation, but there is no requirement for a director to be present in the Isle of Man to take part, provided they are able to communicate with all other directors.

Tax and dividends

Companies must file an annual return and an annual tax return and pay a small charge when filing these.
So-called resident companies benefit from 0% corporation tax. In addition, dividends are not subject to withholding tax.

VAT is payable at the standard rate of 20% by VAT-registered organisations.

Legal help for company incorporation

At Quinn Legal we have extensive corporate experience and understand the legal and accounting requirements of the Isle of Man authorities. We can act on your behalf to incorporate a new company or transfer an existing organisation to the Isle of Man jurisdiction.

We are commercially-focused and will ensure that a robust corporate framework is in place to protect your interests and that of your company. We’ll work with you to ensure you also have the flexibility you need to grow your business.

Having the right company documentation in place is essential. It means that if difficulties arise, there are clear, unambiguous agreements that can be relied on. This can reduce the risk of legal action and help those involved reach an amicable solution. Our expert company lawyers will review your needs and identify any areas where your corporate structure can be strengthened.

As well as incorporation, we can also advise on mergers, restructuring, stock exchange listing and corporate disputes.

Get In Touch Today

At Quinn Legal we help our clients from day one.

For a no obligation initial consultation or to make an initial free equiry please call our team 01624 665522 or email us: hello@quinnlegal.im.

Alternatively, you can Make An Online Enquiry and one of our team will be in touch with you as soon as possible.

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