Types of Isle of Man Company
The Isle of Man operates two distinct streams of corporate entity, usually referred to as 1931 Act and 2006 Act companies.

The 1931 Act company is a traditional corporate entity and is subject to many operational and filing requirements which can prove onerous.

The 2006 Act company is a more up to date entity specifically designed to allow more flexibility in its operation while still retaining appropriate safeguards.

Under both the 1931 and 2006 Companies Acts there are a variety of forms of company available:

Company Limited by Shares
The most commonly used company where the liability of its members is limited to the amount unpaid on shares they hold.

Company Limited by Guarantee
Such companies have no predetermined capital and no shares. The members' liability is limited to the amount they have agreed to contribute.

Hybrid Company
A hybrid company combines the features of companies limited by shares and by guarantee. Such companies are often used as an alternative to a trust.

Unlimited Company
This company is similar to a civil law partnership and its use is usually limited to situations where a corporate personality only is required. The company has a share capital, but there is no limit to the liability of the members.

Public Company (PLC)
A 1931 Act company can be established as a public company. Such a public company may offer its shares or debentures for sale to the general public and must have its annual financial statements audited. The 2006 Act does not differentiate between private and public companies and any 2006 Act company can offer its shares to the general public.

Limited Liability Company (LLC)
Originally conceived in the USA, an LLC amounts to an ‘association with limited liability'. It has a corporate personality and limited liability but for tax purposes it is treated as a partnership, with each member of the LLC paying tax on their share of the profits.

Protected Cell Company A form of company limited by shares, a protected cell company is a single legal entity in form but has the ability to segregate and protect its assets in separate cells.

See also:  Why the Isle of Man - Other jurisdictions - Company services