sle of Man, Man also spelled Mann, Manx-Gaelic Ellan Vannin or Mannin, Latin Mona or Monapia, one of the British Isles, located in the Irish Sea off the northwest coast of England. The island lies roughly equidistant between England, Ireland, Scotland, and Wales. The Isle of Man is not part of the United Kingdom but rather is a crown possession (since 1828) that is self-governing in its internal affairs under the supervision of the British Home Office.
The Isle of Man is about 30 miles (48 km) long by 10 miles (16 km) wide, its main axis being southwest to northeast. It has an area of 221 square miles (572 square km). The island consists of a central mountain mass culminating in Snaefell (2,036 feet [621 metres) and extending north and south in low-lying agricultural land. Man’s coastline is rocky and has fine cliff scenery. The grass-covered slate peaks of the central massif are smooth and rounded as a result of action during various glacial periods. The island’s landscape is treeless except in sheltered places. To the southwest lies an islet, the Calf of Man, with precipitous cliffs, which is administered by the Manx National Heritage as a bird sanctuary.
The Isle of Man is a high-reputable international finance and international business center due to its political stability, business-friendly policies and an attractive fiscal and regulatory environment.
In 2006, it came into force the Companies Act 2006, which currently co-exist with present and future companies incorporated under the previous Isle of Man Companies Act 1931.
These changes have been aimed at competing with jurisdictions that offer international companies that are easy to manage and with advantageous tax systems such as the British Virgin Islands, Cayman Islands or Bermuda. With the addition that Manx companies are not restricted from carrying out onshore transactions or own assets located on the island.
Private company limited by shares (LTD)
|Governing corporate legislation|
Companies Act 2006
Corporations in the Isle of Man may be formed by one or more shareholders, who can be either natural or legal persons, residents or non-residents, without limitations.
At least one director, who may be natural persons or corporations. If a director is a corporation, it must bear the appropriate fiduciary’s license granted by the Financial Services Committee.
|Information published relating to company officers|
Details of shareholders may not be available to the public.
Directors’ details are available in the public registry.
The liability of the shareholders for the company is limited to the amount of their respective shareholdings.
|Accounting requirement/ compliance|
Limited companies formed under the Companies Act 2006 are required to maintain accounting records and prepare financial statements for at least 6 years, which can be held anywhere in the world and in any currency.
Limited companies should file annually a tax return and an annual return, and pay the annual return fee, but are not required to file their financial statements, nor required to audit the accounts.
Shareholders have the right to require formal accounts to be produced and also to require an audit.
|Corporate income tax|
Corporate tax standard rate is 0%.
A 10% tax rate applies to companies conducting banking business in the Isle of Man and licensed by the Isle of Man Financial Supervision Commission, and companies conducting retail activities. Income from real property located in the Isle of Man is subject to 20% tax.
A company is tax resident in the Isle of Man if it is incorporated in the Isle of Man or its place of central management and control is in the Isle of Man. A company incorporated in Isle of Man, subject to certain conditions and requiring the approval of the Assessor of Income Tax, may be considered as non-resident if it is managed and controlled elsewhere.
Resident companies are taxed on a worldwide basis, while non-resident entities are subject to tax on their income derived from the Isle of Man.
|Shared capital/paid up|
There is no requirement to establish an authorized share capital, capital may be in any currency and shares may be with or without par value.
|Basis of the Legal System||Common law|
There is no statutory requirement to have a company secretary, and it may be an individual or a corporation, resident or non-resident.
Shares may be issued as ordinary, redeemable, convertible, with preference rights or non-voting rights. Bearer shares are not permitted.
Corporations must have a registered physical office address located in Isle of Man and must have a registered agent, who holds the appropriate fiduciary’s license granted by the Financial Services Committee.
Annual general meetings are not mandatory. However, if meetings are held, they can be anywhere in the world and it may be by proxy.
|Time to form||3-5 days|
All companies no matter what their incorporation date, are due for renewal on the 31st December each year
Convenient world time zone: GMT
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