The Isle of Man

The Isle of Man is an island of 560 square kilometres located in the Irish Sea and has a population of 70,000. It is a British crown dependency with its own parliament called the Tynwald. The legal system is based on the English system and the currency used is the British pound.

Isle of Man companies can currently be formed and regulated under two separate Acts.

The first Act is the Isle of Man Companies Act of 1931 (as amended), while alternatively companies formed and regulated in the Isle of Man can be governed by the Isle of Man Companies Act of 2006.

The main features of companies formed under the Isle of Man Companies Act 1931 (as amended) are detailed below:

• Incorporation can be effected within three days of receipt of the instructions.


• A company may be incorporated with a single shareholder. This shareholder need only apply for a single share whose par value can be as low as one pence. There are no thin capitalisation rules.


• Companies can be incorporated with only one shareholder. Shareholders need to be recorded at the registered office of the company and at the Companies Registry.


• Nominee shareholders are permitted and can be provided by Dixcart.


• The minimum number of directors is two. Directors do not need to be resident in the Isle of Man.


• A company secretary is required. The secretary does not need to be resident in the Isle of Man.


• The registered office must be situated in the Isle of Man at a licensed agent.


• There is a requirement to file an annual return.


• Accounts must be prepared and filed. These do not need to be filed with the Companies Registry.


• 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% and banks are taxed on their banking business at a rate of 10%.


• The Isle of Man has a Customs and Excise agreement with the UK. This means that for VAT, Customs, and most Excise duties, the two territories are treated as one.

The main features of companies formed under the Isle of Man Companies Act 2006 are detailed below:

• Incorporation can be effected within three days of company name approval.


• A company may be incorporated with a single shareholder. This shareholder need only apply for a single share whose par value can be zero.


• Companies can be incorporated with only one shareholder. Shareholders need to be recorded at the registered agent of the company.


• Nominee shareholders are permitted and can be provided by Dixcart.


• The minimum number of directors is one. Directors do not need to be resident in the Isle of Man.


• There is no requirement for a company secretary.


• A registered agent is required and can be an Isle of Man licensed corporate service provider.


• There is a requirement 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.


• There is no requirement to hold an annual general meeting.


• Accounts need not be prepared. However accounting records must be maintained at the address of the Isle of Man registered agent.


• 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% and banks are taxed on their banking business at a rate of 10%.


• The Isle of Man has a Customs and Excise agreement with the UK. This means that for VAT, Customs, and most Excise duties, the two territories are treated as one.

For more detailed information on this jurisdiction, click on the links below.

Isle of Man Jurisdiction Note 1931 (as amended)
Isle of Man Jurisdiction Note 2006