The Isle of Man has long had a reputation as a hub for corporate finances particularly offshore which makes it a much sought after jurisdiction when considering setting up an offshore company.
The Isle of Man has a rich and interesting history dating back to the Vikings. It in fact is not and has never been part of the United Kingdom despite being, part of the British Isles. In 1266, the Island became part of Scotland as part of the Treaty of Perth. From there it underwent a period of alternating rule by the kings of Scotland and England. The Island came under the feudal lordship of the English Crown in 1399, but the Island never became part of the United Kingdom retaining its status as an internally self-Governing Crown Dependency.
The Islands parliament is known as Tynwald and dates back over 1,000 years. This makes the Islands own laws and overseas all internal administration, fiscal and social policies. Lawyers in the Isle of Man are known as advocates and combine the roles of solicitors and barristers in England. Manx advocates have an exclusive right of audience in the Islands courts, although English barristers can be licensed to appear in certain cases. Although English law does not extend to the Isle of Man, the Manx legal system is based on the principles of English common law, but in other respects Manx law has been developed to meet the Island’s special circumstances, particularly with regards to direct taxation, company law and financial supervision. The Judiciary of the Isle of Man judgments carry weight internationally.
The head of State is Queen Elizabeth II who holds the title of Lord of Man. The Lord of Man is represented by a lieutenant Governor, but its external issues, such as foreign representation and defence are administered on the Islands behalf be the UK Government and the Island makes an annual payment for these services.
The Isle of Man does not have membership nor associate membership with the European Union. Although through the UK’s Act of Accession it permits trade for Manx goods without tariffs, in conjunction with the Customs and Excise agreement with the UK, this facilitates free trade with the UK. While Manx goods can be freely moved within the EU, capital and services cannot be.
The Isle of Man has long enjoyed a strong economy. The Islands main economy used to be agriculture and fishing, but this was surpassed a long time ago by offshore banking, manufacturing and tourism. The main international event associated with the Island is the Isle of Man Tourist Trophy race otherwise known as the TT, the TT is considered to be one of the greatest motorcycling sporting events in the world. The Isle of Man currency is pound sterling although the Government also prints the Manx Pound which is freely exchangeable on the Island along with GBP. Whilst many jurisdictions have suffered over the recent years due to financial turmoil the Isle of Man’s bank deposits in 2011 remained steady at £62 billion.
Corporate Advantages of the Isle of Man
The main reason that people think of the Isle of Man when considering Incorporating an offshore company is its unrivalled reputation in the sector. There are however numerous advantages when it comes to the registering of an Isle of Man Company. Such as its 0% corporate income tax, no withholding tax, no capital gains tax and no stamp duty along with a myriad of other attractive qualities – for more information regarding Isle of Man Benefits please follow this link.
There is also double tax relief available for foreign tax paid through its double taxation agreements or its various tax information exchange agreements. – for more information regarding its tax agreements please follow this link.
Isle of Man Registry and Laws
The Isle of Man Companies Registry has been in existence since 1865. Company law is separate and additional to the requirements for submission of documents to the regulators. The Isle of Man’s reputation is based on the fact that that their legal profession in practising law is to the highest standard combined with its well established and yet adaptable laws. – for more information regarding the Isle of Man Registry or the companies acts please follow this link
Isle of Man Banking
Banking has been in existence in the Isle of Man for the last two hundred years and has experienced continued growth for the last three decades. This is mainly due to the governments support and incentives to help the financial sector. All major United Kingdom high street banks are represented on the Island and a number of major international banks are also present. The Isle of Man banking sector is renowned for its customer service, image and reputation. – for more information regarding Isle of Man banking please follow this link
Isle of Man VAT
Although the Isle of Man is not part of the UK following the 1979 Customs and Excise Agreement it is treated as part of the UK for VAT purposes. This means that imports and exports between the Isle of Man and the UK are not treated as such. VAT law in the Isle of Man generally mirrors that of the UK and is administered by the Isle of Man Customs and Excise. – for more information regarding registering for VAT in the Isle of Man please follow this link
Isle of Man Structures
The Isle of Man government is determined to keep the Isle of Man’s reputation as an attractive place for offshore incorporation by continuing to introduce legislation in order to offer a broad a range of corporate structures as possible.
Isle of Man Intellectual Property
The Isle of Man is committed to becoming a popular choice for Intellectual Property with the government in full support of implementing legislation to encourage this. It is already recognised for its reputation and numerous tax incentives and is also party to various international agreements concerning Intellectual Property – for more information on Intellectual Property in the Isle of Man please follow this link
Residency in the Isle of Man
Immigration legislation on the Isle of Man is similar to that in the United Kingdom and applies to nearly everyone that is not a British Citizen. Irish citizens and EEA citizens can exercise Treaty rights in order to be exempt from many provisions.
A company formed in the Isle of Man is resident for tax purposes. Also if a company is incorporated outside the Isle of Man it is regarded as resident if the management and control is on the Island. This rule comes from UK case law. Non resident companies that have a branch in the Isle of Man are taxed to the extent of the business conducted on the Island.
Due to the expansion in the finance sector there is a need for professional skilled workers that exceeds the Islands capabilities therefore there are policy’s to fill these positions.