Corporate Structuring in the Isle of Man

30 December 2025

Authored by Isle of Man Wealth & Funds Services Association Member, Abacus Trust Group

An Isle of Man company can be incorporated as a 1931 Act Company or a 2006 Act Company.

The Isle of Man is a well-established international finance centre making its own laws, setting its own taxes and which benefits from a skilled workforce, political stability and a dynamic business ecosystem.

The government has worked hard to create an environment for commerce to flourish by supporting a diversified economy that includes financial services, manufacturing, niche industries such as eGaming and emerging sectors such as BioMed.

Advantages:

Simple and advantageous tax regime (0 per cent standard rate of corporate income tax for most types of income)
No stamp duty
No withholding tax on dividends
No inheritance tax
No capital gains tax
No transfer pricing arrangements
A standard rate of income tax for employees of 10 per cent, with a higher rate of 21 per cent
Tax incentives and grants for businesses relocating to the Island
Isle of Man companies are able to register for VAT and businesses in the Isle of Man fall under the UKs VAT regime.

There are two incorporation options, a company can be incorporated as a 1931 Act Company or a 2006 Act Company:

1931 Act Company	2006 Act Company
At least two directors required, corporate directors not allowed	Only one director required, can be a corporate director
Must have a Company Secretary, can be a director	No company secretary required
Must have authorised share capital	No authorised share capital
Distinction between special and ordinary resolutions	No distinction between special and ordinary resolutions
Registered Agent not required	Must have a Registered Agent
Prescribed filing requirements	Less stringent filing requirements.

Which Act a company is incorporated under will be determined by the nature of the business and the availability and capacity of the director and members.

A 2006 Act Company is more flexible with less rigorous procedures but a registered agent is obligatory and services will generate fees. This is beneficial for those not resident on the Isle of Man and who would prefer administrative procedures are carried out routinely by another entity, which could also provide a registered office and directors.

Smaller businesses with members and directors who are Island residents may prefer a 1931 Act Company they could administer themselves.

Both incorporation options trigger obligations under beneficial ownership and economic substance legislation.

No action should be taken on the basis of this note, nor should it be construed as amounting to tax, legal or VAT advice. Suitable, specific and professional advice should always be obtained in respect on any particular issue.