Offshore company formation in the Isle of Man.
Incorporation governed by the Isle of Man Companies Act of 2006

Part of the Norwegian Kingdom of the Hebrides until the 13th century when it was ceded to Scotland, the isle came under the British crown in 1765. Current concerns include reviving the almost extinct Manx Gaelic language.
Isle of Man is a British crown dependency but is not part of the UK. However, the UK Government remains constitutionally responsible for its defense and international representation.

Location: Western Europe, island in the Irish Sea, between Great Britain and Ireland.

Isle of Man

The Isle of Man is a self-governing British crown dependency, located in the Irish Sea at the geographical centre of the British Isles. The Isle of Man legal system is based on the English common-law model.

Isle of Man advantages and offshore companies application

Main advantage of the Isle of Man companies is paying zero tax on trading and investment income. The Isle of Man has a customs and excise agreement with the UK. This means that for VAT, customs, and most excise duties, the two territories are treated as one. So it may be advisable to register an Isle of Man offshore company for VAT if it plans trading with the EU.

Most common use of the Isle of Man offshore companies:

• holding investment, e.g. portfolios, UK commercial property and other companies shares - these activities are not taxed;
• simplified trading within the EU due to the zero rate of tax on trading income and the ability to quote an EU accepted VAT number;
• holding intellectual property since the Isle of Man is a signatory to the Paris Convention on Patents and Trademarks.

Specifics of offshore company formation in the Isle of Man

• Incorporation time - 3-5 days after the name approval by the Companies Registry. Name ending can be only Limited, Ltd, Public Limited Company or PLC.
• An offshore company may be incorporated with a single shareholder, which can have a single share with zero par value. A single director is allowed and he/she may be non - Isle of Man resident.

Annual accounting and support for offshore companies in the Isle of Man

• An offshore company is required to file an annual return. It is the responsibility of the director(s) to prepare the annual return and the responsibility of the registered agent to file the return.
• Offshore companies accounts need not be prepared. However accounting records must be maintained at the address of the Isle of Man registered agent.
• An offshore company need not have its accounts audited if it meets two of the three following criteria:
  – its annual turnover is GBP 5.6 million or less;
  – its balance sheet total is GBP 2.8 million or less;
  – its average number of employees is 50 or fewer
• Every offshore company tax return must be prepared and filed at the Isle of Man Treasury. All Isle of Man companies are now treated as resident companies. Resident companies are taxed at a rate of 0% on their trading and investment income. Income derived from land and property situated in the Isle of Man is taxed at a rate of 10%.

Offshore company formation fees

Formation and 1st year fees:
– Offshore company formation  GBP 500
– Isle of Man Government formation fee GBP 190
– Compliance charge  GBP 400
– Registered Agent/Office  GBP 600
– Total for 1st year: GBP 1 690

 

Apostilling of the documents (may be required for a bank account opening) GBP 150

 

Second and subsequent years fees:
– Offshore company Registered Agent/Office  GBP 700
– Annual compliance fee  GBP 300
– Isle of Man Government Annual Return fee  GBP 370
– Total for the 2nd year: GBP 1 370

 

Shipping the documents by DHL or FedEx is paid extra.

Here is the list of the documents a client receives with the Isle of Man offshore company corporate package:

• 1. Memorandum and Articles of Association.
• 2. Certificate of Incorporation.
• 3. Subscribers' Resolutions to appoint the first director/s.

The following information will be required for the Isle of Man offshore company formation:

• 1. Three alternative company names.
• 2. Full name and address of the director(s), certified passport copy and proof of address.
• 3. Full name and address of the shareholder(s), certified passport copy and proof of address.
• 4. Full name, address, and phone number to ship the corporate documents by a courier (DHL and FedEx).

Nominee services

If you do not wish to disclose your personal details for the offshore company formation we can register a company with our nominee director and/or nominee shareholder services. This option will enable you to manage and own the offshore company confidentially. All powers will be transferred to the real manager/owner by a notarized general Power of Attorney (POA) and notarized Declaration of Trust.

Nominee services fees:

Nominee director services – GBP 280 annually

Nominee shareholder services – GBP 280 annually

In case both nominee director and nominee shareholder are employed the fees are GBP 400 annually

Notarized General POA – GBP 120

Notarized Declaration of Trust – GBP 60

Due diligence

We are required by law to keep the due diligence information on our internal file on the company directors and shareholders. This information will be kept safely and strictly secure in our offices and it will not be for public view.

Due Diligence documentation. We will require a certified copy of passport (or other similar ID), an original proof of address and a bank or professional reference for each person indicated on the company order form. A proof of address is any recent document where the name and residential address of the person is indicated. A recent utility bill, landline telephone bill, credit card or bank statement or other similar document is suitable as a proof of address.

Please advise if you wish to proceed with the Isle of Man offshore company formation. We will send you an invoice with wire transfer instructions. Offshore company formation takes about 3-5 business days after the fees are received.

We can offer a variety of additional services related to the offshore company formation in the Isle of Man. Listed briefly they look as follows:

• assistance with opening an offshore company bank account (funds can be controlled remotely via Internet. Credit cards are available);
• provision of mail forwarding address in Europe, USA. Mail is collected and forwarded (such an address may be necessary to receive sensitive business and private mail, e.g. bank correspondence, etc.

Provision of space on a web server - WWW hosting. For active Internet users we can offer anonymity in their Internet activities: sending email messages, browsing the Internet, electronic banking. All these activities can be conducted in complete privacy using advanced technology.

Please ask for more details if you are interested in to establish an offshore company in the Isle of Man sending
a message to our fax numbers in:
UK: +44 870 421 1387
USA: +1 626 609 3984
or E-mail: info@privacy-solutions.com
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