What Financial Assistance is Available Through the Isle of Man Enterprise Development Scheme?

Entrepreneur Government Funding

The Isle of Man has long been known as the home of entrepreneurs and innovators. This has been achieved over the years by playing to its strengths; strong communication with the private sector, supporting new ideas and ways of thinking, changing legislation quickly, and because it has wanted to lead not follow.

E-business has found a home in the Isle of Man with many companies becoming significant on-island employers.

The Isle of Man Government has launched an innovative Enterprise Development Scheme (EDS). The EDS is designed to allow the Isle of Man Government to provide new companies with a mix of loans and equity. The EDS involvement with the companies gives a large amount of support to new businesses and provides not just funding, but ongoing guidance.

The ideal EDS targeted business would be likely to be exporting their services from the Isle of Man and are, for example, E-business, Fintech, Media, Manufacturing, and, Bio Medical related. Eligible businesses include existing on-island businesses, early projects in their commercialisation phase, or simply businesses relocating to the Isle of Man to grow. Proposals that would be excluded from the EDS programme are companies that are exclusively trading on the island and have no exports.

The investment mix (debt/equity) is be based on a number of factors, not just the likelihood of complete success (profitable business and a financial return for the IOM Government) but also the employment opportunities for the island, the connectivity to other related industries on the island, the technology, and strategic economic nature of the investment (new sectors). Assessment and management of the investment is made by an independent manager, and an application can be supported by Dixcart.

How to Apply

All applications require an online enquiry form submission and an Isle of Man relevant business plan to be submitted to the Department of Economic Development. Dixcart can assist with this submission and can provide on-going support to a new company to the island, including:

  • Accounting
  • Company formation
  • International advice and support
  • On-going management and support
  • Premises
  • Recruitment
  • Tax, VAT, and payroll support

The EDS funding comes in a range of forms as mentioned above either as a loan or equity investment. In addition, the Isle of Man also has a very generous grant assistance programme and Dixcart can provide further information on request.

The Three Main EDS Offerings Are:

Accelerator Scheme Loan

  • Locally based business
  • Ideally +5 employees
  • Up to £100,000 loan on commercial terms
  • Repayment term of between 1 to 5 years
  • Purpose: loan to support capital, plant, equipment, premises and other tangible assets.

Accelerator Scheme Equity

  • Locally based businesses and businesses relocating to the IOM
  • Trading in export driven economic sectors
  • Minimum of +5 employees
  • Up to £250,000 equity investment as a minority shareholder
  • Investment exit strategy anticipated to be within 3 to 5 years

Relocator Scheme

  • New businesses setting up in the IOM
  • Businesses relocating full or portions of existing businesses to the IOM
  • Up to £1,000,000 as a minority shareholder
  • Investment exit strategy anticipated to be within 3 to 5 years
  • Minimum of 20+ employees

Additional Information

If you would like further information regarding the advantages offered by the Isle of Man, please speak to David Walsh at the Dixcart office in the Isle of Man: advice.iom@dixcart.com or to your usual Dixcart contact.

Dixcart Management (IOM) Limited is Licensed by the Isle of Man Financial Services Authority.

The Advantages and Relevant Procedures to Migrate a Company or Foundation to Guernsey

Why is Guernsey an Attractive Jurisdiction for Companies?

There are a number of reasons why an individual may wish to migrate a company or foundation from its current jurisdiction of registration to the Bailiwick of Guernsey.

Guernsey is a well-regulated and internationally respected international jurisdiction.  It is also a politically stable jurisdiction with its own autonomous government but with close links to the UK.

Another advantage that Guernsey offers is a more flexible regulatory regime compared to those in other jurisdictions; for example:

  • The Companies (Guernsey) Law, 2008 enables a company to convert from a non-cellular company into a protected cell company or an incorporated cell company.
  • The Foundations (Guernsey) Law, 2012 provides a number of unique options compared to the laws of other jurisdictions. Additional details can be found in Dixcart Article: Guernsey Foundations.

Guernsey is also a leading jurisdiction in which to conduct investment fund business and has expertise and experience in dealing with a variety of asset classes, investment strategies and legal structures.

Corporation Tax in Guernsey: The Benefits Available

Non-resident corporations are subject to Guernsey tax on their Guernsey source income. Companies, however, pay income tax at the current standard rate of 0% on taxable income. The only exceptions are income derived from banking business, insurance business or custody services business, and licensed fund administration business, which are all taxable at 10%.

Conditions and Procedures: A Company or Foundation Migrating to Guernsey

Certain criteria must be met before a company or foundation is able to migrate to Guernsey:

  • An entity must be permitted to migrate to another jurisdiction, according to the law of the jurisdiction under which the entity currently operates. Without this permission the entity will not be entitled to relocate.
  • The members (shareholders) of the company, or officers of the foundation, must have passed a special resolution under the terms of the current foreign law under which the entity operates, consenting to the migration of the entity.
  • The entity may not be in liquidation or any other insolvency process during relocation.
  • The entity must satisfy the statutory ‘solvency test’ immediately after it is placed on the Guernsey Registry.
  • A company’s memorandum (and/or articles of association) or the foundations charter must not differ on entry to the Guernsey Registry, compared to what was previously in place before the registration. If any changes are required, they must be approved by a resolution of the company/foundation as prescribed under the foreign law under which it currently operates.
  • The company must not be able to issue bearer shares.
  • If a company is intending to perform any activities (even if regulated by the Guernsey Financial Services Commission (GFSC)) which may result in the company becoming classified as a ‘supervised company’, then the company must obtain consent from the GFSC prior to commencing the migration process.

Status on Migrating to Guernsey

On registration as a Guernsey company or foundation:

  • all property, and rights to which the entity was entitled immediately before the registration, remain its property and rights;
  • the entity remains subject to all criminal and civil liabilities, all contracts, debts and other obligations to which it was subject immediately before the registration or removal;
  • all actions and other legal proceedings which could have been instituted or continued by or against the entity immediately before the registration or removal may be instituted or continued by, or against it, after the registration or removal has occurred; and
  • any conviction, ruling, order or judgment which is in favour of, or against the entity before the registration or removal, may be enforced by or against it after the registration or removal has occurred.

Registration as a Guernsey company or foundation does not:

  • create a new legal person; or
  • prejudice or affect the identity or continuity of the legal person, constituted by the company or foundation.

Solvency Test

To protect creditors who could be affected by a company’s migration in to or out of Guernsey, a test of solvency must be applied to the company. A company is considered to pass this solvency test if:

  • the company is able to pay its debts as and when they are due; and
  • the value of the company’s assets is greater than the value of its liabilities.

Provided that all of the information required in connection with an application is available, migration into Guernsey can generally be carried out quickly and is similar in terms of provisions, costs and timescale to the formation of a new entity. It must, however, be taken into consideration that there may be time constraints regarding outward migration from the country where the company or foundation was previously domiciled.

How Can Dixcart Help?

The Dixcart office in Guernsey has an extensive knowledge and expertise regarding redomiciling companies and foundations to Guernsey.

Dixcart managers can provide:

  • Comprehensive advice and assistance throughout the process.
  • Assistance in registering a company or foundation in Guernsey.
  • Assistance in meeting the criteria and regulations before and after migration.
  • A comprehensive range of individual and professional commercial services once relocation has taken place, including ongoing advice and compliance guidance.

Additional Information:

If you require additional information on this topic, please speak to John Nelson at the Dixcart office in Guernsey: advice.guernsey@dixcart.com or to your usual Dixcart contact.