The lure of favourable tax laws on the Isle of Man is bring increasing numbers of funds, investors and businesses to domicle in the jurisdiction. Ita McArdle, a director at law firm Simcocks Advocates, on why increasing numbers of AIM-listed companies are choosing…
Ita McArdle, a director at law firm Simcocks Advocates, on why increasing numbers of AIM-listed companies are choosing to domicile on the Isle of Man.
The Isle of Man, like the Channel Islands, is a low tax jurisdiction with a legal structure similar to the UK. The Isle of Man differs from the Channel Islands in that a company here does not require any form of regulatory approval to raise capital.
The Isle of Man Financial Supervision Commission does not become involved in the flotation of an Isle of Man-based company other than in its normal regulatory capacity and this boosts the speed and efficiency of a flotation.
The Isle of Man has attracted business because of this ability to move more quickly. Firms can face delays of six to eight weeks on top of the usual time it takes to float in other off-shore centres such as Guernsey – this is unheard of in the Isle of Man.
Traditionally, the market has seen a lot of property investors and investment funds set up on the Island.
Trading UK companies tend not be attracted to the Isle of Man for the purpose of a listing but start-ups domicile on the Island because they are drawn to it by its tax neutrality.
In the past year, we have seen opportunities from investments firms in the UK, Europe, India and Russia.