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:
The Isle of Man has a highly favourable regime of corporate taxation, offering many benefits to clients who wish to deploy well-structured tax planning vehicles, including Manx companies.
Some of the Island’s unique benefits include:
•Licensing and regulation of corporate service providers by the Isle of Man Financial Services Authority.
•Nominee Shareholders – Isle of Man legislation permits the use of Nominee Shareholders and does not require the beneficial ownership details to be registered with the authorities, giving a degree of confidentiality.
•Beneficial Taxation Arrangements – Isle of Man companies with non-Isle of Man beneficial ownership and whose activities take place outside the Isle of Man are subject to income tax at zero%.
•Legal framework – The Isle of Man is a ‘Common Law ’jurisdiction. With a few exceptions, notably in Land law and Constitutional law, the Isle of Man closely follows English legal precedents and legislation.
•Professional services – As a mature financial centre the Island has a well established professional services industry, with representation from leading international firms in the fields of Law, Accountancy Banking and Insurance.