Isle of Man Company Formation

October 31, 2012

Looking to incorporate on the Isle of Man? Here is everything you need to know.

The Isle of Man is a small island in the middle of the Irish Sea, it is a UK Crown Dependency but in real terms has its own government. When the tourism industry dried up in the 1980’s the island sought a new way of making its way in the world and set up what is now one of the most well known and respected offshore financial service centres in the world. As well as being at the forefront in OECD compliance it also has well established support services in place and a skilled financial services workforce who are strongly regulated.

Obviously the main attraction of incorporating in the Isle of Man is the tax savings that can be made via the islands well known 0/10 corporate tax regime. However the island is also well positioned for those looking to expand their horizons into Europe, the middle east and even further afield. Some of the sectors in which the island is currently leading the way include a world class aircraft registry, a booming e-gaming sector as well as a rapidly developing space industry. The Manx government is also pressing forward into the Interlectual Property area.

Plus Points Of Forming An Isle of Man Company

Zero Percent Corporate Tax – As long as your company is not a bank or insurance company (which are taxed at 10%) there is a zero rate of corporate tax on the Isle of Man
No Capital Gains Tax – There is no tax to be paid on capital gain derived from the sale of any holdings
No Inheritance Tax – Making your Manx company a very tax efficient way of owning property

Different Types Of Isle of Man Company

There are 2 different types of Isle of Man company that can be formed, designated by the year in which the regulations came into effect. The original old style company (Companies Act 1931 Company) and the newer more flexible company type (Companies Act 2006 Company). Up until post 2010 the 1931 company was the company type of choice for most individuals and most Manx CSPs have extensive experience of incorporating and administering this type of company.

The Isle of Man 1931 Company

In order to form a Companies Act 1931 company on the Isle of Man you will need 2 directors and 1 secretary. The directors must be “real” people and not corporate entities. The registered office must be on the Isle of Man. There are many CSPs on the Isle of Man that can help by providing professional directors and a registered office address as well as setting up and administrating the company for you. Whilst not quite a company in a box it is the next best thing. Those are the basics but if you would like to see the full act then there is a copy of it online here:- Isle of Man Companies Act 1931

The Isle of Man 2006 Company

Known as the new new Manx company vehicle the main difference between this and the 1931 company is that the 2006 Legislation allows a company to only have 1 director (making it much easier for a business to go from being a soul trader to incorporation). This director may also be a corporate entity. There are many other small changes but these will only affect a very small percentage of people looking to form a company. It is stringly recommended to speak to an Isle of Man CSP before attemting to incorporate a 2006 company for yourself.

How Much Does It Cost To Form A Manx Company?

On the face of it incorporation is cheap, either type of company can be formed for £190. HOWEVER, the forms are complex and unless you are based on the island you’ll obviously need local support. The Manx CSP industry is highly professional and well regulated, we’d always suggest you take advantage of their services. A good CSP will make forming the company, establishing bank accounts and on-going administration a piece-of-cake for you.

How The 2 Types Of Manx Company Compare

Law: Common Common
Minimum Gov Fees: 0% – 10% £250
Corporate Tax: 0% – 10% 0% – 10%
Double Taxation Access: Only UK Only UK
Directors Required : 2 1
Directors Must Be Local: No No
Public Records Available: Yes Optional
Director/Shareholder Meetings To Be Held: Anywhere Anywhere
Min Number Of Shareholders/Registered Members: 1 1
Directors Made Public: Yes Optional
Company Secretary Required: Yes Optional
Accounts Must Be Prepared: Yes Yes
Audit Required: Yes – some exceptions apply Yes
Accounts Must Be Filed: Yes No, except in relation to tax
Accounts Are Made Public: No No
Annual Return Must Be Filed: Yes Yes
Are Allowed To Change Domicile: Yes Yes


Ready To Form An Isle of Man Company?

Gecko Corporate Services are who we have always recommended to friends and clients alike. Adrian and David run a dynamic company that can’t do enough to help their clients get what they want out of their Manx company. Please use the form below to contact Gecko Corporate Services who will be happy to help you.

[customcontact form=1]


One Response to “Isle of Man Company Formation”

  1. Evgenia Marakujeva on April 17th, 2013 8:40 am

    Dear Sirs,

    Following our professional interest we are looking for possibilities to expand our e-commerce partnerships across Europe as our geographical home market place and across industries which are our main on-line business markets. One of the on-line industries which is in our focus is Gaming/Gambling.

    Isle of Man is one of the most popular jurisdictions for on-line gaming/gambling in Europe. Simple and straightforward licensing process and procedures makes Isle of Man perfect destination for opening a gaming/gambling company. Your company is one of the leading legal advisers and registrators of the licensed gaming/gambling structures; therefore, we are interested in getting in contact with you in order to discuss the possible ways how both our companies can benefit from the synergies which may come out of our cooperation.

    eComCharge – is a credit card processing gateway. Our company is registered in Latvia, EU. We run our own IT platform, which has been used on the market for more than 5 years. We strongly believe that to run a gaming/gambling company, it is essential to be ready to start accepting payments right away. Customers around the world generally prefer to use their credit cards; consequently, the sooner a merchant is ready to accept cards, the better.

    We are interested in discussing the possibilities of our cooperation with your company in the field of offering our credit card processing solution to the potential clients of your company. We are absolutely sure that this sort of ‘package’, i.e. fully licensed company and integrated payment processing solution would be extensively beneficial for the clients. Besides, we have a Partner Program in place, which would give you possibility to increase the revenues from the clients who would decide to choose your company. We offer Referral Fees for the clients who would come from you. On the other hand, from time to time we are receiving inquiries from our clients who are looking for a trustful company which can provide quality services in legal area.

    We hope that there is a good reason to continue the discussion on synergy possibilities. Please let us know who is the person in your company responsible for partnerships.

    Best regards,
    Sales Manager
    eComCharge Ltd.

    skype: evgenia.marakujeva
    phone: +371 67398658

Got something to say?