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Isle of Man Company

The Isle of Man is a self-governing Crown Dependency of the United Kingdom, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is represented by a Lieutenant Governor. The island is not part of the United Kingdom, but its foreign relations and defence are the responsibility of the UK Government although the United Kingdom rarely interferes in the island's domestic matters, its "good government" is ultimately the responsibility of the Crown which is in practice, the Government of the United Kingdom.

In late 2014 the Isle of Man was home to 85,500 people, of whom 28,939 resided in the island's capital, Douglas. The island has an area of 572 km or 221 Square Miles.

The Isle of Man is a low-tax economy with no capital gains tax, wealth tax, stamp duty, or inheritance tax and a top rate of income tax of 20%. 

The rate of corporation tax is 0% for almost all types of income, the only exceptions are that the profits of banks are taxed at 10%, as is rental (or other) income from land and buildings situated on the Isle of Man.

Since November 2006 the Isle of Man has had two parallel mechanisms for establishing new companies.

A traditional Isle of Man company can be established under legislation dating from 1931 to 2004. This company requires two directors and one secretary. The directors must not be corporate entities and the registered office must be in the Isle of Man. Through our Isle of Man agents ORCA can provide professional directors and a registered office address, as well as setting up and administrating the company for you.

At the same time, a more modern version can be set up under the 2006 Companies Act. This new act was placed on the statute books on November 1, 2006. It aims to make it easier to set up businesses in the Isle of Man and provides for a new Isle of Man corporate vehicle to co-exist with present and future companies incorporated under the Companies Acts 1931 to 2004 and those formed under the Limited Liabilities Companies Act 1996. The IOM Companies Act 2006 is legally robust, yet flexible and easy to administer. It requires only one director, which may also be a corporate entity and is based on the world’s leading jurisdiction’s model.

Combined with the Island’s introduction in April 2006 of a zero rate of corporation tax for almost all businesses, the Isle of Man is proving increasingly attractive to international businesses and their advisors. The Island has become one of the favourite offshore jurisdictions for a variety of reasons. These include:

  • The Island’s first-class reputation as a well regulated international finance centre
  • Its increased competitiveness with other offshore jurisdictions. It is in a European time zone and filings for name changes or new incorporations can be made faster
  • The ability to list an Isle of Man Company without the need for prior regulatory approval
  • The Island’s company law is derived from English company law; as such, investment banks, institutional investors and their advisors are comfortable dealing with Isle of Man companies
  • As the Isle of Man Registry is available online, documents can be viewed at anytime
  • Provided name approval has been received a company can be formed within two working days
  • Most Isle of Man companies are able to take advantage of prospectus exemptions which facilitate the preparation and despatch of the admission document or listing particulars
  • An Isle of Man company can have shares denominated and can prepare accounts in any currency

For those who are contemplating establishing an Isle of Man company it is important to select the right one for the purpose. ORCA can assist with this process, including:

  • Structuring/establishment of the vehicle
  • Officers of the company, subject to restrictions
  • Assistance with VAT registration
  • Establishment of bank accounts
  • Administration
  • Accounting

Isle of Man - GBP

Initial Fees for First Year

Annual Fees for subsequent years

Incorporation 750 0
Registered Office & Agent 600 700
Compliance/File Review 0 125
Nominee Shareholder 150 150
Director 750 750
Preparation & Filing Annual Return 0 175
Annual Return Filing Fee 0 320
Opening of Bank Account 650 0
Total 2900 2220

The annual return filing fee (£320) is a disbursement paid direct to the IoM government.

UK / Ireland020 7175 0041
(International +44 20 7175 0041)
US / Canada1 954 866 5986
(INTERNATIONAL +1 954 866 5986)
Australia and New Zealand+61 2 9191 7472
(INTERNATIONAL +61 2 9191 7472)
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