Types of Isle of Man Companies
The Isle of Man has been at the forefront of innovative financial and corporate legislation for a number of years. In order to retain its pre-eminent position, the Isle of Man Government introduced new corporate legislation in 2006, to complement the existing Company Legislation.
1931 Act and 2006 Act Companies
1931 Act companies are governed by the Companies Acts 1931 - 2004 and are subject to many rigid operational and filing requirements.
The 2006 Act company has been specifically designed to be more flexible for today's fast moving and sophisticated global market.
Under both the 1931 and 2006 Companies Acts there are a variety of companies available:
Company Limited by Shares
This is probably the most commonly used company where the liability of its members is limited to the amount unpaid on shares they hold.
Protected Cell Company
A form of company limited by shares, a protected cell company is a single legal entity in form but has the ability to segregate and protect its assets in separate cells.
Guarantee Company
Pure guarantee companies have no predetermined capital and thus no shares; the members' liability being limited to the amount they
have agreed to contribute, if the company is wound up. A hybrid company combines both the features of a guarantee company and a company limited by shares. A hybrid company is often used as an alternative to a trust; a Manx Family Foundation is a type of hybrid company.
Unlimited Company
This company is similar to a civil law partnership and its use is usually limited to situations where a corporate personality only is required.
The company has a share capital, but there is no limit to the liability of the members.
Public Company (PLC)
A 1931 Act company can be established as a public company, the difference being that a public company may offer its shares or debentures for sale to the general public. It must also have its annual financial statements audited.
The 2006 Act does not distinguish between private and public companies and any type of 2006 Act company can offer its shares to the general public.
Limited Liability Company (LLC)
Originally conceived in the USA, a limited liability company (LLC) basically represents an ‘association with limited liability'. It is a vehicle with a corporate personality and limited liability but taxed as if it was a partnership, with each member of the LLC paying tax on their share of the profits.
MORE INFORMATION
2006 Company
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The 2006 Company - "The New Manx Vehicle"The Isle of Man Companies Act 2006 introduced what is now known as the "2006 Company", also known as the "New Manx Vehicle" or the "New Manx Company". In order to maintain its pre-eminent position in innovative financial and corporate legislation the Isle of Man Government undertook in 2006 the most radical reform of company law for more than seventy five years. One of the results of this reform was the 2006 Company. Simple, Streamlined and Flexible Coupled with other innovatory legislation, including zero tax for companies and the capping of personal income tax, the 2006 Company further enhances the Island's status as a leading, "AAA" rated (Standard & Poors' and Moody's) centre for international business. This simple, streamlined, flexible and cost effective corporate vehicle is available through Equiom Trust's corporate services division. More information on the 2006 Company>>>
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