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Isle of Man

Limited Liability Company

The Isle of Man is a high-reputable international finance and international business center due to its political stability, business-friendly policies and an attractive fiscal and regulatory environment.

Limited liability companies are incorporated under the Limited Liability Company (LLC) Act 1996, which was adopted from the Wyoming (US) LLC legislation.

An Isle of Man LLC is a hybrid of both partnership and corporate structures, protecting LLC members from the debts incurred by the entity and separating the rights of its members and that of the LLC.

An LLC requires minimal corporate formation requirements and a fast registration procedure. There are no company structure requirements for its management, nor are there provisions for company meetings, directors, secretary, or capital. Its operating agreement may be arranged by its members according to their needs.

LLCs are fiscal transparent entities, all profit received by the LLC is considered to be transferred to its members and taxed at the personal level. Members pay personal income taxes in their country of residence on LLC profits proportionally to their share of participation in the LLC company, whether distributed or not.

It is important to note that certain countries do not recognize the pass-through status of an LLC, if the LLC is deemed to be tax resident in one of such countries, it may be subject to corporate income tax.

An LLC may a minimum of two members up to an unlimited number of members and is therefore useful as a tax transparent investment vehicle.

LLC’s tax transparency allows residents of certain jurisdiction to not be penalized under controlled foreign company rules.

The Isle of Man is part of the customs territory of the EU under Protocol 3. Therefore, Manx incorporated entities benefit from free trade with the EU and EU VAT registration.

However, the recent BREXIT has created uncertainties on the Isle of Man’s future relationship with the EU and companies holding EU assets and trading with the EU.

The country is also a signatory to the Paris Convention on Patents and Trademarks, making the Isle of Man limited company an interesting vehicle to hold intellectual property.

Companies conducting relevant activities such as fund management, banking, insurance, finance and leasing, distribution and service center business, headquarters business, intellectual property business, shipping, and holding company business - are required to meet economic substance requirements:

  • conduct its core income-generating activities in Isle of Man (which are defined in the law).
  • be directed and managed from within the Isle of Man.
  • have an adequate amount of operating expenditures incurred in or from within the Isle of Man.
  • have an adequate physical presence (including maintaining a place of business or plant, property, and equipment) in the Islands.
  • have an adequate number of full-time employees or other personnel with appropriate qualifications in the Islands.

Holding companies which only hold equity participations in other entities and only earn dividends and capital gains will be subject to a reduced economic substance test – it must have complied with all applicable filing requirements and must have adequate human resources and adequate premises in the Islands for holding and managing equity participations.

With respect to IP holding companies – companies that are exploiting IP rights and:

  • have not created such IP
  • have acquired the IP from a company of the same group structure or from a third-party that has conducted research and development out of Isle of Man and licenses the IP to a company(s) of the same group

or does not carry out research and development, branding or distribution as part of its Isle of Man core income generating activities – are considered high-risk intellectual property businesses and may be subject to an enhanced substance requirements test.

The Isle of Man has started to undertake the first OECD automatic exchange of information (AEoI) through Common Reporting Standard (CRS) in 2017 and has signed over 50 tax information exchange treaties (TIEa) and 11 double taxation agreements (DTA).

All in all, an Isle of Man LLC is an excellent entity for movable and immovable assets holding, tax transparent investment vehicles, and in combination with a trust for asset protection purposes and estate planning.

Taxes

Corporate Income Tax – An Isle of Man LLC is a tax transparent entity, which means that any profits are passed through to the members to be reported as personal income. If LLC owners are non-Isle of Man residents, an LLC is free from taxes originating outside of Isle of Man.

Personal income tax – An individual is tax resident in the Isle of Man if is physically present in the island for at least 183 days or more in a tax year, or an average of 91 days of more over 4 consecutive years.

Residents are taxed on worldwide income, while non-residents pay tax on their income derived from the Isle of Man. Income tax is levied at 10% on annual income up to GBP 8,500 and 20% on the excess. Capital gains are not subject to taxation. Investment income is taxed as ordinary income.

For non-residents, income sourced from the island is taxed at a flat 20% rate. Non-residents don’t pay tax on dividends, bank interest and building society interest are tax-exempt.

Other taxes – For V.A.T. and Customs duties purposes the Isle of Man and UK forms a single territory. V.A.T. standard rate is 20%.

There are no additional property taxes more than the 20% income tax payable from rental or development of land and property.

In the Isle of Man, there are no transfer, stamp, inheritance and wealth taxes.

  • Tax transparent entity
  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 0% Offshore Income Tax Rate
  • 0% Corporate Tax Rate
  • 0% Capital Gains Tax Rate
  • 0% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 0% Royalties Withholding Tax Rate
  • 1 Losses carryback (years)
  • Indefinitely Losses carryforward (years)
  • 11.00% Social Security Employee
  • 12.00% Social Security Employer
  • 20% Personal Income Tax Rate
  • 20% VAT Rate
  • 0 Tax Treaties

Country details

Isle of Man
GBP
Douglas
Europe
e n , g v
75049

The Isle of Man is a British Crown Dependency formed by the main island and some islets located in the sea of Ireland, between Ireland and Great Britain. The sovereign is the British monarch, as lord of Man, who is represented by the governor-general. Its international representation and defense are the responsibility of the Government of the United Kingdom.

Like all other dependencies, it is not part of the United Kingdom, neither the European Union nor the European Economic Area. Although it does belong to the customs union of the European Union, thus benefiting from the free movement of industrial and agricultural goods.

As a member of the Common Travel Area, the free movement of citizens of the European Economic Area is also permitted.

The island is 572 sq. km. in extent and low elevation above sea level, with 621 meters of maximum altitude on Snaefell mountain. Around the main island, there are a few small islands such as Calf of Man, St Patrick, and St Michael.

The Isle of Man has about 80,000 inhabitants, of whom 26,000 reside in the island's capital, Douglas.

The English language is spoken by almost the entire population of the island and is also the official language. Manx Gaelic is the historical language and was traditionally spoken, but today there are few who speak fluently or on a daily basis.

The Isle of Man Pound is the official currency, which is not an independent monetary unit but is a special pound sterling (GBP) issued for the island.

The Isle of Man has a completely independent government, parliament elected by universal suffrage (Tynwald) and judicial system. The executive power of the island is in charge of the General Minister and his or her Council of Ministers. The General Minister is nominated by Tynwald after each general election.

Financial services are the main economic sector. Banking, insurance, financial and offshore business services alone constitute more than a third of the island's GDP. Recently, it has been opened an office of the International Stock Exchange to boost the financial industry of the island.

Manufacturing, tourism, and more recently gambling are other key sectors of its economy. Agriculture and fisheries, traditionally the major sectors, are currently relatively small in the Manx economy.

Services

We can help you incorporate a Limited Liability Company in Isle of Man for $4,600.


Description


Isle Of Man Company Formation – USD 4,600.00 (All included)


We pride ourselves in providing the best possible professional service which includes our honest hassle-free “No Hidden Fee” policy. Your incorporation package includes:



  • All Applicable Registration and Government Fees

  • Certificate of Incorporation

  • Memorandum & Articles of Association

  • Appointment of Company Director(s)

  • Director(s) Acceptance Letter

  • First Board Resolution

  • Register of Members

  • Register of Directors

  • Share Certificate(s)

  • Corporate Documents’ Courier Delivery


Time to form: 2 weeks.


All our incorporation services include a yearly consulting session, a dedicated account manager and access to our global network of trusted business services, including introductions to accountants, financial, tax and legal advisors at no cost.


Bank Account Opening Support Services (Optional)


Bank Account Options*:



  • Isle of Man Bank Account (Remotely) – USD 700.00

  • Mauritius Bank Account (Remotely) – USD 600.00

  • Labuan (Malaysia) Bank Account (Remotely) – USD 500.00

  • Bahamas Bank Account (Remotely) – USD 500.00

  • Curaçao Bank Account (Remotely) – USD 500.00

  • Offshore Bank Account** (Remotely) – USD 300.00

  • Singapore Bank Account (In-person) – USD 900.00

  • Hong Kong Bank Account (In-person) – USD 1,200.00

  • Switzerland Bank Account (Remotely) – USD 1,200.00

  • Lithuania Bank Account (In-person) – USD 1,200.00

  • Latvia Bank Account (In-person) – USD 1,200.00

  • Poland Bank Account (Remotely) – USD 1,200.00

  • Liechtenstein Bank Account (Remotely) – USD 1,200.00

  • Luxembourg Bank Account (Remotely) – USD 1,200.00

  • Cayman Islands Bank Account (Remotely) – USD 900.00

  • Cyprus Bank Account (In-person) – USD 1,200.00

  • Armenia Bank Account (Remotely) – USD 1,200.00

  • New York (US) Bank Account (Remotely/In-person) – USD 2,000.00

  • Czech Republic Bank Account (Remotely) – USD 1,200.00


For Private Wealth Structures, we have further options available in large financial centers. Please contact us for more information.


*This accounts’ schedule of fees are for trading, service and holding companies whose activities are not regulated and are considered low-risk by financial industry standards. If you conduct regulated activities such as financial services or gaming, or you operate in a high-risk industry such as cryptocurrencies, precious metals, adult, dating. Please also contact us for more information relating to these industries.


**Offshore Bank Accounts: Belize, Puerto Rico, Nevis, Antigua, Saint Lucia.  Other bank account options may be available depending on business profile and turnover.


Our Bank Account Opening Support Service includes:



  • Introduction to the Bank Manager

  • Bank Account Opening Process Management

  • Assistance and advice in filling out Business Questionnaires, KYC Forms and Bank Account Application Forms.

  • Certified Copies of Constitutional Documents

  • Corporate Seal

  • Introductions to Payment Processing and Merchant Account Providers


Our banking service is not just a mere introduction to the bank. We assist you in filling out the business plan forms appropriately and help you understand and provide business details, commercial information and purpose/use of the bank account that a given bank wants to know in order to approve your account application.


Banks want certainty and clarity on how the account will be used. Everything must be watertight. We will work with you to make sure there is minimal ‘back and forth’ and a smooth account opening process


We include introductions to payment processors or merchant accounts with all of our bank account opening support services. Whether you just need standard credit card processing or specialized services for high-risk processing, we are happy to help you with introductions that can empower your business


Annual Fees – USD 3,900.00


Including:



  • Government Fees

  • Registered Agent Service Fees

  • Registered Office Fee

  • Annual Return Filing Fee


Directorship Services (Optional)



  • Local Professional Director (1 year) – USD 5,900.00 p.a.





Click here to incorporate your Isle of Man LLC.

Incorporate now

Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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