This guide is for creating an Isle of Man company as an Isle of Man resident.
There are a few ways you can set up your Isle of Man company.
Sole Trader
You can operate as a sole trader where your finances and the companies are taxed as one, this is normally easier to set up and can be the right option for a lot of businesses. Have a look at our how-to article for more info. How to Setup as as Self-Employed
Limited Liability Company 2006 Act
2006 act companies normally need to be managed by a corporate service provider on the island. They will walk you through the setup process as part of the service. This can be easier but can also cost at least £1,000 per year for the service.
Limited Liability Company 1931 Act
1931 act companies are set up for Manx residents to create a limited company with shareholders. This can be done yourself or you can pay an accountant to help. As the name implies this provides some protection from the companies liabilities, it does this by setting up a separate legal entity for the company. So it is then the company that takes on any loans and makes money, not the person running it. This can be a little more complicated so let’s break it down into steps.
Step 1, check if your company name is available. This can be done from the government website by following this link. Check Company Name if your name is available you can request a name approval letter.
Step 2, fill out the first directors Form 1 this can be found on the gov website under Company Forms. This is where you can set the company address and add the beneficial owners and company directors.
Step 3, fill out the memorandum of association. This is where you set the rules that the company operates under. An example can be found on the gov website Company Forms under Memorandum forms.
Step 4, send in the two forms along with a cover letter quoting the company name confirmation code, the two forms, and the details of the filing fee payment, £100 at the time of writing, to the companies registry.
All being well, after a little while they will send you a Certificate of Incorporation, and you’re all done!
