Everything You Need To Know About Isle Of Man Company Formation

December 21, 2015

Offshore Company Formation

The Isle of Man is an established international business and finance centre, with a secure base built on a reputation for political stability, low taxation and a firmly established fiscal and regulatory environment.

The Isle of Man is an internally self-governing dependent territory of the British Crown and whilst it is situated within the British Isles, it is independent of the UK. The Isle of Man is technically a Crown Dependency of the UK but is independent in all matters except in relation to foreign affairs and defence, both of which are the responsibility of the United Kingdom Government.

Why is the formation of an Isle of Man Company the way forward?

One of the main advantages of an Isle of Man company is paying zero tax on trading and investment income in the Isle of Man. The Isle of Man has a customs and excise agreement with the UK. This means that for Value Added Tax, 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 UK or EU. The Isle of Man is therefore a very good jurisdiction to incorporate a trading company if you wish to import and export goods into and out of the EU.

Some of the other common uses of the Isle of Man offshore company formation are:

  • holding investment, e.g. portfolios, UK commercial property and other company 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.

The formation of an Isle of Man company can be as quick as one hour (additional charge) once the company name approval has been applied for and received from the Companies Registry.

An Isle of Man Companies Act 2006 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.isle of man company

Services we can provide for your Company Formation:

  • Annual accounting and support for the offshore Company 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;
  • 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%;
  • Provision of Officers to the Company;
  • Provision of a Registered Office and Registered Agent facility;
  • Assistance with opening a Company bank account.


At Sanctuary Trust Limited we pride ourselves on offering a bespoke service tailored to our client’s requirements. We focus on our client’s needs without the red tape of a larger, more bureaucratic organisation.

We deliver a personal service at a realistic cost without compromising on our full Corporate and Fiduciary service solutions we provide.

We look forward to hearing from you.


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