Isle of Man corporate structure
Legal basis - Common law
Legal framework - Companies Act 2006
Company form - Private company limited by shares (LTD)
Responsibility - The shareholders' liability for the company is limited to the amount of their respective shareholdings.
Economic substance - Companies carrying out relevant activities such as fund management, banking, insurance, financing and leasing, distribution and service center activities, head office activities, intellectual property activities , maritime transport and holding company activities - are required to meet the requirements of economic substance:
- carry out its main income-generating activities on the Isle of Man (which are defined in law).
- be directed and managed from the Isle of Man.
- have an adequate amount of operating expenses incurred within or from the Isle of Man.
- have an adequate physical presence (including maintaining an establishment or factory, tangible capital) on the islands.
- have a sufficient number of full-time staff or other appropriately qualified staff on the islands.
Holding companies that only hold interests in other entities and earn only dividends and capital gains will be subject to a reduced economic substance test - they must have met all applicable filing requirements and must have adequate human resources and adequate premises on the islands for the holding and management of equity participations.
With regard to intellectual property holding companies - companies that exploit intellectual property rights and:
- have not created such an IP address
- have acquired the intellectual property of a company of the same group structure or of a third party which has carried out research and development activities outside the Isle of Man and grants the intellectual property to one or more companies of the same group
or does not conduct research and development, branding or distribution as part of its basic income generating activities in the Isle of Man - are considered high risk intellectual property businesses and may be subject improved testing of substance requirements.
Share capital - It is not necessary to establish an authorized share capital, the capital can be denominated in any currency and the shares can be with or without par value. The shares can be issued in ordinary, redeemable or convertible form, with preferential rights or without voting rights. Bearer shares are not permitted.
Shareholders - Isle of Man companies can be formed by one or more shareholders, which can be natural or legal persons, residents or non-residents, without limitation. Contact details of shareholders may not be publicly available. Nominee shareholders are authorized.
Administrators - At least one director, who can be a natural person or a company. If a director is a corporation, he or she must hold the appropriate fiduciary license granted by the Financial Services Committee. The contact details of the directors are available in the public register.
Secretary - There is no legal obligation to have a company secretary, and it can be an individual or a company, resident or non-resident.
Registered address - Companies must have a registered office address in the Isle of Man and must have a registered agent, who holds the appropriate fiduciary license granted by the Financial Services Committee.
General assembly - Annual general meetings are not compulsory. However, if meetings do take place, they can be anywhere in the world and it can be done by proxy.
Electronic signature - authorized.
Re-domiciliation - Incoming and outgoing redomiciliation is authorized.
Conformity - Limited liability companies incorporated under the Companies Act 2006 are required to keep accounting records and prepare financial statements for at least 6 years, which can be kept anywhere in the world and in any currency.
Limited companies are required to file an income tax return and an annual return each year, and pay the annual filing fee, but they are not required to file their financial statements or audit the accounts.
Shareholders have the right to demand the production of formal accounts and also to demand an audit.
Key figures of Isle of Man companies
|Official name||Isle of man|
|Proper noun||Ellan Vannin (gv); Isle of Man|
|Subcontinent||Europe (outside the European Union)|
|Population||82,619 inhabitants (2019)|
|Population growth||-0.28 % / year|
|Density||142.69 inhabitants / km²|
|GDP||6.593 billion $USD (2016)|
|GDP / capita||79,156 $USD (2016)|
|GDP growth||7.40 % / year (2016)|
|Life expectancy||81.20 years (2016)|
|Birth-rate||10.96 ‰ (2016)|
|Fertility rate||1.93 children / woman (2016)|
|Mortality rate||10.10 ‰ (2016)|
|Child mortality rate||4.10 ‰ (2016)|
|Literacy rate||100,00 % (2019)|
|Official languages||English, Mannois|
|Change||Pound sterling (£ GBP); Manx pound (£ IMP)|
|HDI||0,849 / 1 (2010)|
|Nature of State||British Crown Dependency|
|Head of state||Lord of Mann Elizabeth II; Lieutenant Governor Richard Gozney|
|National Holiday||July 5 (Tynwald since 979)|
|Codes ISO||IM, IMN|
|Tourists||292,331 people (2016)|
The island of Man is located in the Irish Sea, in the center of the British Isles, equidistant from the coasts of Ireland, England and Scotland. It is a territory made up of a main island and a few islets.
The Isle of Man forms a dependency of the British Crown, i.e. the island does not belong to the United Kingdom or the European Union but is directly owned by the British sovereign, currently the Queen Elisabeth ii, who acts as "Lord of Man". This status does not make it a recognized independent state, but the island has a large political and economic autonomy.
Isle of Man Corporate Taxation
Corporate tax rate (IS)
|Global CIT rate (%)||Company: 0;
Real estate income: 20
Corporate tax (IS) due dates
|CIT return deadline||One year and one day after the end of an accounting period.|
|CIT final payment due date||One year and one day after the end of an accounting period.|
|Estimated due dates for CIT payments||N / A|
Personal income tax rate (PPI)
|Global PIT rate (%)||20|
Personal income tax (PIT) due dates
|PIT return due date||October 6|
|PIT final payment due date||January 6|
|Estimated PIT Payment Due Dates||Monthly|
Value added tax (VAT) rate
|Standard VAT rate (%)||20|
Withholding tax rate (WHT)
|WHT rate (%) (Div / Int / Roy)||0|
Capital gains tax rate (CGT)
|Corporate capital gains tax rate (%)||N / A|
|Tax rate for individual capital gains (%)||N / A|
Wealth / Equity Tax Rate
|Global wealth / equity tax rate (%)||N / A|
Rate of inheritance and gift tax
|Rate of inheritance tax (%)||N / A|
|Gift tax rate (%)||N / A|