ISLE
OF MAN (IOM) - LIMITED EXEMPT COMPANY
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The Isle of Man, situated in the centre of the British Isles, is a self-governing
dependent territory of the Crown which is not part of the United Kingdom.
Tynwald, the Island's 1,000 year old Parliament, makes its own laws and
oversees all internal administration, fiscal and social policies. External
issues, such as foreign representation and defense, are administered on
the Island's behalf by the UK Government and the Island makes an annual
payment for these services.
As
a British Crown dependency, the ultimate responsibility for the Island's
good government is vested in the Crown but by long standing convention,
the UK Government does not legislate for the Island except with the
specific consent of the Island's Government
Principal
Corporate Legislation
The Companies Acts 1931 to 1993. The International Business Act 1994.
Type
of Law
Common Law, based on English Common Law.
Type
of Company For International Trade and Investment
Limited Exempt Company.
Restrictions
on Trading
Cannot trade within the Isle of Man or own real estate there. Cannot
undertake the business of banking, insurance, assurance, reinsurance,
fund management, collective investment schemes, trust management, trusteeship,
the rendering of investment advice or any other activity that would
suggest an association with the banking or insurance industries. Cannot
offer its shares for sale to the public.
Powers
of Company
A Company incorporated in the Isle of Man has the same powers as a natural
person.
Language
of Legislation and Corporate Documents
English.
Shelf
Companies Available
Yes.
Time
to Incorporate
One day, subject to name approval.
Name
Restrictions
A name that is similar to or identical to an existing company. A name
that is known to exist elsewhere. A name that implies illegal activities.
A name that implies royal or government patronage.
Language
of Name
Latin Alphabet. Any name in a language other than English must be accompanied
by a translation to ensure that the name is not restricted.
Registered
Office Required
Yes, must be maintained in the Isle of Man at the address of a licensed
management company.
Names
Requiring Consent or License
Bank, building society, savings, loans, insurance, assurance, reinsurance,
trust, trustees, Chamber of Commerce, university, municipal or their
foreign language equivalents or any name in English or a foreign language
that may suggest association with the banking or insurance industries.
Suffixes
to Denote
Limited Liability Limited or Ltd.
Disclosure
of Beneficial Ownership to Government Authorities
No.
Taxation
Limited Exempt pay no income tax, but pay a fixed annual fee to the
Government. Limited Exempt companies are not tax resident in the Isle
of Man and may not undertake business in the Isle of Man.
Double
Taxation Agreements
Apart from a limited treaty with the United Kingdom, the Isle of Man
is not party to any double tax treaties.
Financial
Statement Requirements
Whilst there is no requirement to file audited financial statements
with the authorities, it is important to note that a company is required
to keep financial records, which reflect the financial position of a
company. If accounting records are kept at a place outside the Isle
of Man they must be sent to the company's registered office in the Isle
of Man such as to disclose with reasonable accuracy the financial position
of the business in question at intervals not exceeding 6 months. Failure
to maintain accounts or make them available for inspection at a company's
registered office is an offence punishable by imprisonment or a fine.
The Assessor of Income Tax reserves the right to call in the financial
records for inspection.
License
Fees
Limited Exempt Companies pay £450 per year.
Directors
The minimum number of directors is two. Limited Exempt companies are
required to appoint at least one resident director. Bodies corporate
may not be appointed as directors
Company
Secretary
Limited Exempt companies require a company secretary. The Company Secretary
must be a natural person, resident in the Isle of Man and must hold
a professional qualification.
Shareholders
Minimum is one.
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