There are several advantages for using corporate structures, especially those registered in financial hubs such as the Isle of Man.
They can be used to help mitigate taxes, hold luxury assets, hold investment portfolios, or as part of appropriate succession planning (something Covid-19 has been a particular catalyst of).
Isle of Man companies benefit from a 0% standard rate of corporate income tax, 0% stamp duty, 0% capital gains tax and no annual filing of accounts for private companies.
What can you do with an Isle of Man Corporate Structure?
- Own assets such as ships, aircraft and works of art.
- Hold UK or foreign property.
- Hold investment portfolios and participations in other companies. This is due to the zero rate of tax on such activities and where withholding taxes on dividend income from such companies may not apply.
- Hold intellectual property.
- Act as an employer for international workers.
- Receive international income, commissions, and royalties.
- Be part of business structuring and re-structuring.
- Convert immovable assets, such as land, into movable assets, such as shares.
- Incorporate as part of succession planning and asset protection.
- Incorporate as part of tax planning.
- Isle of Man companies wishing to borrow money from banks benefit from being in a well-regulated jurisdiction with a public register of mortgages and other charges.
Formation of Companies in the Isle of Man
Dixcart in the Isle of Man can provide full management and control of companies, as well as offering advice regarding the statutory obligations for companies incorporated in the Isle of Man and compliance with substance rules requirements.
The Isle of Man is home to businesses operating in a wide variety of sectors. The Manx Government has actively encouraged the financial sector. Consequently, the island is extremely well served by international service providers, fully licensed and regulated banks, and insurance companies.
Originally published 22 February 2021
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.