Company Services > The 2006 Company

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
This modern vehicle for business incorporation has been specifically designed for today's fast-moving and sophisticated global market. It was created by the Isle of Man Treasury working in close cooperation with the private sector.

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.

2006 Company - Key Elements
The 2006 Company is based on, but is more streamlined than the International Business Company (IBC) model, which was previously adopted in other international jurisdictions such as Bahamas, Barbados and the BVI, and is fully in line with recognised benchmarks. It is introduced alongside the Companies Acts 1931-2004. Companies formed under the 1931 Act are permitted to convert to a 2006 Company.

The key elements of this streamlined corporate vehicle are:

• Greater flexibility of use
• Simplified reporting
• Cost effective
• No requirement for authorised share capital
• No capital maintenance requirements (subject to satisfaction of a solvency test)
• Use of regulated corporate directors/one director individual or corporate
• Use of registered agents, in place of company secretary (a role performed by licensed corporate service providers)
• Unlimited corporate capacity but restricted objects permissible
• No preclusion of financial assistance
• Pre-incorporation contracts can be adopted
• Simple merger and consolidation procedures
• Introduction of protected cell companies for general business use
• Simple corporate re-domiciliation from other jurisdictions

Click here to download our 2006 Company brochure (PDF 2.2mb)

The 2006 Company has been designed for a range of corporate transactions. It is particularly useful for public offerings, securitisations, asset and project finance. It will extend the already significant number of Isle of Man Incorporations made directly by corporate service providers, both directly and on behalf of international lawyers and brokers, in particular in connection with AIM admissions and the establishment of open and closed-ended investment funds.