In 2006 the Isle of Man introduced a new form of company which was more suited to its international clientele. This form of company exists in parallel with the more traditional companies which can be formed, similar to UK or Irish law, giving business a choice regarding how their corporate vehicle may be governed.
The primary benefit of the modern Isle of Man company is to allow ease of administration, flexibility and speed in corporate transactions while retaining high standards of regulation and governance. Below are some of the principle features of a company incorporated under the Isle of Man Companies Act 2006:
- The company may have a single shareholder
- Sole directors are permitted and this may be a corporate directors.
- Company secretaries are not required although a company must have a registered agent and registered office in the Isle of Man. These must provided by a licenced a Corporate Service Provider on the island which is licenced by the FSA.
- Annual general meetings are not required and members meetings can be held at such times and in such places within or outside the Isle of Man as appropriate.
- The company may declare and pay dividends, distribute assets, reduce share capital and purchase its own shares by means of a directors resolution, providing it is able to satisfy a test of solvency.
- Shares do not need to have, a par value and, therefore, there is no concept of authorised share capital.
- Companies have unlimited capacity to undertake any business or activity.
- A company is not required to file details of its members, or directors at the Companies Registry unless it elects to, although directors details will be included in the company’s annual return.
- An Isle of Man company’s registers of members is not open to the public, however the Isle of Man Government maintains a database of Beneficial Ownership. This database is not currently accessible to the general public.
- There is no requirement to file annual accounts at the companies registry although it must keep adequate financial records should accounts be required.
If you would like further information on the benefits and features of Isle of Man companies or would like to discuss incorporating a company, please contact Phil Hardisty at phil@icmwealth.com
