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Offshore Jurisdictions

Where to Incorporate Your Offshore Company

View Offshore Information by Country/Jurisdiction:

Belize	British Virgin Islands	Cyprus
Delaware Non-Resident LLC	Gibraltar Tax Exempt Company	Gibraltar Non-Resident
Irish Domestic Companies	Isle of Man	Jersey
Liechtenstein Foundations	Luxembourg Holding Company	Netherlands Antilles
Panama	UK Managed Ltd Company	UK Non-Resident LLP

Isle of Man - Fact File

British Crown Protectorate. Effectively self-governing in all matters save defense, however, in theory ultimate power still rests with the British Parliament. Excellent efficiency. English speaking. Excellent air and sea communications with the United Kingdom and the Republic of Ireland. Low individual and corporate taxation for residents. Residents are taxed on their worldwide income. The main types of offshore company are Exempt and International.

The registration of non-resident companies was suspended in 1999 as a precursor to legislation due to be introduced as a result of the Edward's Report, a report commissioned by the British government to investigate the corporate banking regulatory provisions of the Channel Island jurisdictions and their effect on the UK, and subsequent pressure by the British government. The proposed legislation will see the introduction of provisions governing corporate service providers" and will create additional obligations on persons offering such services, including the requirement to be licensed by the Isle of Man Financial Services Commission.

The "know your client" provisions common throughout the UK will become essential for corporate service providers and banking institutions alike, the latter already having seen a dramatic increase in their regulation as a result of recent radical banking legislation. A requirement for corporate service providers in the Isle of Man will result in an increase in the fees charged for Isle of Man companies. Legal system based on English common law. Favorable company law and statutes. Unlike Jersey and Guernsey, the Isle of Man enjoys a Customs Union with the UK for VAT purposes (Protocol 3 of the Treaty of Accession, 1972). Significant number of ship and yacht registrations. Growing banking and insurance sector.

50% of GNP derives from financial and related services. Tax treaty with the UK with disclosure of information provisions with respect to UK residents. For certain inheritance tax purposes, British nationals may not be deemed to have lost their British domicile even if living in the Isle of Man. Apart from UK no other tax treaties.

Star Ratings:

• Corporate registration efficiency: 5 / 5
• Cost: 4 / 5
• Confidentiality: 3 / 5
• Local banking facilities: 4 / 5
• Legal system: 5 / 5
• Political stability: 5 / 5
• Reputation: 4 / 5

Location

The Isle of Man is located in the Irish Sea equidistant from the Republic of Ireland, Scotland and England. Population: 70,000. Capital: Douglas.

Relationship with the EU/UK

As stated, the Isle of Man is a Crown Protectorate. It is not part of the United Kingdom or the European Union but nevertheless, under Protocol 3 above, is part of the Customs Union. Therefore, there is complete freedom of trade between the Isle of Man, the United Kingdom and other parts of the European Union. In addition, unlike any of the Channel Islands, it is considered part of the UK for VAT collection purposes. Under the mutual Customs Union Agreement, the Isle of Man imposes, save in certain circumstances, an identical 17.5% VAT rate to that of the UK. In other words, the Isle of Man can be an ideal location to register a trading company requiring a genuine EU VAT 'number but also wanting full corporate tax exemption.

Manx Company Advantages/Comments

• There is no specific minimum capital requirement. In most cases, a registration agent will only issue two shares. A Manx company can be capitalized with as little as two pence Sterling.
• All Manx companies require a local registered office for service of process.
• Both registered and bearer shares can be issued.
• There must be at least two directors in a Manx company and directors must be real people. Exempt and International companies require one of the directors to be Manx resident and a professionally qualified local secretary. Directors' details are kept on public record. Otherwise, there are no other nationality or residence restrictions.
• Public anonymity can be obtained by the employment of nominee directors/shareholders.
• Since 1993, it is possible to have single subscriber companies.
• A full register of members and charges must be kept at the registered office in the Isle of Man. It is no longer necessary to adopt an official company seal although most companies still request one.
• The name of the required company should be checked with the Registrar and the ending will be either Limited or Public Limited Company.
• Developed and favorable corporate law.
• Statutes less bureaucratic than British or Irish equivalents.
• Branches of foreign companies in the Isle of Man may apply for exempt tax status. In other words, it may be possible to register a branch of a Delaware non-resident LLC in the Isle of Man and receive a Manx VAT number.
• Excellent air and sea communications.
• Well educated population.
• No accounts or annual summaries need to be filed with the Manx Government in the case of Exempt companies.

Popular Options

Please note that Manx companies require local management and accountancy services and can only be supplied by our sister company company The SCF Group. The SCF Group can provide a wide range of licensed management, legal and accountancy services throughout the world.