The Isle of Man is a self-governing British Crown Dependency located between Great Britain and Ireland. As an offshore jurisdiction, it offers a number of benefits to those looking to incorporate a company there. In this article, we will detail the benefits and process of company formation in the Isle of Man.
Why the Isle of Man?
The primary benefit of incorporating in the Isle of Man is the fact that there are no corporate taxes. Citizens whose countries enforce taxation on worldwide incomes are still obliged to declare revenue from the Isle of Man company. But other than this, there are no wealth, inheritance, stamp duties, transfer pricing arrangements or capital gains taxes payable.
There’s no minimum capital required in the Isle of Man. A company can be formed with as little as two pence sterling in capital. This is a significant difference from some jurisdictions that require thousands of paid-up capital before the company is incorporated.
The island is also included on the OECD ‘white list’ demonstrating its compliance with tax-cooperation and the exchange of information. It is also party to a number of Double Tax Treaties and Tax Information Exchange Agreements. The jurisdiction is rated as AA+ by Standard & Poors and Moodys and has been recognised as the ‘leading offshore centre’ in several international indexes.
Finally, there is little bureaucracy when it comes to the paperwork. Filing requirements for company formation are minimal; Income Tax Returns are required but filing of accounts are not. This results in a significantly decreased administrative burden on company owners.
Company formation in the Isle of Man
In order to complete your company formation in the Isle of Man, you first need to decide on the ownership structure and share allotment. One shareholder and one director must be nominated. They can be the same person and can be an individual or a company.
A registered office on the Isle of Man must be obtained as must the services of a professional agent. Then the Memorandum and Articles of Association can be drafted. At the same time, due diligence documents are collected and all documentation is submitted to the authorities. After approval has been gained, bank accounts can be opened and additional licenses can be applied for.
The Isle of Man online gambling license
The Isle of Man gambling license has a number of benefits including low taxation, a stable and welcoming government, and a business-friendly location. The license is expensive and can reach over $200,000 in first years cost alone, making it unsuitable for a number of operators, especially most startups. For those cases, we suggest licenses such as the Curacao license or the Kahnawake license which are more cost-efficient and easier to obtain.
Fast Offshore has over two decades of experience in offshore incorporation. We have also worked with numerous clients to obtain gaming and other kinds of licenses. If you are looking to form a company, apply for a particular license, or both, contact us today. Drawing on years of experience, we can help you get started in the Isle of Man, or provide information on other suitable jurisdictions.