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Isle of Man

Company Legislation

The current Isle of Man Companies Act is based on the UK 1929 Act and is thus readily understood by many. It has been recognised, however, that this is not suitable for all types of international business and Government have issued a Companies Act 2005 for comment by industry.

This Act envisages introducing an IBC type company, hopefully with effect from the 6th April 2006 to coincide with the introduction of the zero rate tax regime for companies. The Act is modelled on the BVI 2005 Act and the new type of company will differ significantly from the existing forms that will continue alongside the new ones.

The new companies will introduce the possibility of many optional features such as one director, no secretary, no authorised share capital, no par value shares, capital repayments, merging, and existing companies will be able to convert to the new type.

The Island will be the only jurisdiction in Europe to have this type of company available and this, coupled with the introduction of zero tax on companies, gives the Island a considerable competitive edge.