Five reasons why people set up SPVs in the Isle of Man
The Isle of Man, a self-governing British Crown dependency located in the Irish Sea, has long been recognised as a small but premier international business centre.
Its robust financial services industry, political stability, attractive tax regime and favourable regulatory environment make it an appealing destination for setting up a SPV in a reputable jurisdiction.
Here are five compelling reasons to choose the Isle of Man:
1. Tax regime: The benefit of a completely separate tax system is that the Isle of Man can enjoy low-income tax rates for individuals and a 0% rate of tax for companies on most income. The Isle of Man does not have capital gains tax and there is no requirement to deduct withholding tax from most dividend and interest payments.
2. Value Added Tax: The Isle of Man, by virtue of its unique Customs and Excise Agreement with the United Kingdom, is treated as part of the UK for Customs, Excise and Value Added Tax (VAT) purposes. VAT registration may be desired in order to reclaim input VAT. Registration can be arranged within a matter of days in the Isle of Man, and repayments are usually made within a couple of weeks of returns being submitted, creating immediate cashflow benefits.
3. Flexible corporate laws: The Isle of Man has flexible corporate laws that allow businesses to choose the most suitable structure for their needs. The law, also known as the 2006 Act, follows the international business company model that is available in a number of offshore jurisdictions and offers significant flexibility in terms of company administration. There is no mandate to audit or file annual accounts under the 2006 Act and companies can reduce their share capital by a directors’ resolution, subject to satisfying a statutory solvency test, which simplifies and reduces costs.
4. Trusted, secure legal system: Whether for administrative, tax, confidentiality, substance or other reasons, the ability to re-domicile a company in, or out, of the Isle of Man is a useful feature of Isle of Man Companies legislation. The Isle of Man is regarded as a safe, well-regulated and respected offshore jurisdiction and an Isle of Man company is often deemed a more acceptable vehicle for banks to lend to or to be listed on international stock exchanges.
5. Expertise: A highly skilled workforce of fiduciary, accounting and legal professionals reside in the Isle of Man. Their expertise ensures efficient SPV administration, compliance and governance. Whether establishing a small or large company, there is a comprehensive knowledge base to support the entity throughout its lifecycle.
Why engage a third-party provider in the Isle of Man?
For foreign entities without local operations, engaging a regulated service provider is essential, though many local businesses also prefer outsourcing to manage their secretarial needs effectively.
Choosing Ocorian as your partner in the Isle of Man
Ocorian boasts a dedicated corporate services team in the Isle of Mann adept at serving a diverse clientele, including funds and global corporations. We offer flexible service options, from minimal involvement to comprehensive corporate solutions encompassing incorporation, administration, reporting, and more. Our senior management team, with an average tenure of fifteen years, ensures stability and experienced oversight.
We’ll work alongside your legal and tax advisors and combine industry credentials with international and local knowledge, a network of contacts and, essentially, boots on the ground. Ocorian makes SPVs easier to set up, manage and dissolve and is with you every step throughout the lifecycle.
Contact Gary and the Isle of Man team for more information and to get the support you need.
