ISLE
OF MAN
- LIMITED LIABILITY 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
Limited Liability Companies Act 1996, based on US LLC legislation.
Type
of Law
Common Law, based on English Common Law.
Type
of Company For International Trade and Investment
Limited Liability Company (LLC).
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 Liability Company or LLC.
Disclosure
of Beneficial Ownership to Government Authorities
No.
Taxation
LLC's are fiscally transparent and taxed as a partnership, thus an International
LLC with no resident members or business in the Isle of Man is not taxed
in the Isle of Man. Such LLC's are classed as 'International LLC's'
and pay a fixed annual fee to the Government.
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
LLC Companies pay £450 per year.
Managers
Minimum is one. Managers may be natural persons or bodies corporate
from any nationality and need not be IOM resident.
Company
Secretary
A company secretary is not a requirement under the Act.
Members
Minimum is two.
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