Many business people recognise the advantages of setting up their companies offshore and these days, thanks to the assistance of specialist corporate service providers like Coddan Ltd, it is easier than ever to manage an overseas incorporation.
One of the most popular jurisdictions for this practice is the Isle of Man, which offers a business-friendly environment and a streamlined, effective method of incorporation through the facility to set up what is known as a 2006 Act Company.
A 2006 Act Company offers many benefits. It isn't required to submit regular financial statements, is only obliged to file a simplified annual return, and benefits from the island's zero-rate corporation tax.
However, although there are considerable advantages to setting up a 2006 Act Company in the Isle of Man, there are also certain legal requirements associated with such a formation. All 2006 Act Company formations must be registered with the Isle of Man Companies Register through the filing of a memorandum of association.
All such companies must also have a named, registered Isle of Man agent, who holds a licence from the Isle of Man Financial Supervision Commission, and they must have a registered Isle of Man office.