Due to its zero tax on trading and investment income, combined with the customs and excise agreement between the Isle of Man and United Kingdom, for the purposes of VAT, customs, and most excise duties, the two territories are treated as one, hence, rendering the Isle of Man a considerably beneficial jurisdiction for incorporation of an Isle of Man company for VAT purposes if the Owner intends to engage with trading in the European Union.
The most often used type of company formed is that of a Private Limited Company (Ltd) with the incorporation process taking 1 day. The tax on offshore profits and exchange controls are non-existent. Thus, rendering it a highly attractive choice when it comes to companies formed with the business goal of investment holding, holding of intellectual property, etc.
The jurisdiction’s Local Requirements are limited to the existence of a Registered Office/Registered Agent which/who is to be located in the Isle of Man with no obligation attached as to the presence of a local Company Secretary, Director or with the legal obligation that the meetings of the company take place in the Isle of Man, since the location of the Board Meetings, can be placed anywhere in the world as also the company’s administration. The minimum number of Directors and Shareholders is 1.
Public filings obligations are in their entity non-existent thus safeguarding the personal information of all parties interested i.e. Director(s), Shareholder(s) and Ultimate Beneficial Owner(s) .Furthermore, in connection to the Annual Filing Requirements attached there exists the obligation for the submission of the company’s Annual Return with Audited Accounts been exhibited seldom upon government’s request for reviewing purposes.
Whereas the issuance of bearer shares is not permitted, company re-domiciliation is permitted, as also, the acquiring of shelf companies and the appointment of Corporate Directors ,with the limitation that only licensed holders under the Isle of Man Financial Services Act 2008, may function as Corporate Directors.
GFA TRUST is able to assist our clients in the consultation and formation of several other types of Isle of Man legal entities, based upon the client’s needs and business goals:
- Hybrid Company; It is a company limited by guarantee and having a share capital which is mainly used for non profit making associations i.e. Clubs, Charities etc.
- New Manx Vehicles ‘NMV’; Its privilege is its flexibility as it may be limited by shares, by guarantee and limited by both shares & guarantee. It serves the business goals of a corporation associated with Investment Holding, Asset Management and Holding, International Trading Activities, etc.
- Limited Partnerships; Most suitable for VAT, Marine and Aircraft registration
- Trusts; Inter alia, due to their recognition in all common law jurisdictions and their non-public registration requirements, the Isle of Man Trust is most suitable to meet the specific needs of clients
- Foundations; Through its ability to administer its own assets, funding and name the Isle of Man Foundation is considered as advantageous for several reasons, including, its separate legal personality, the non-requirement of the existence of property for the initial establishment, etc.