Sovereign Trust (Isle of Man) Limited

 

About the Isle of Man

The Isle of Man is an English-speaking low tax country located in the Irish Sea, almost equidistant from England, Scotland, Ireland and Wales. It is 30 miles long and 9 miles wide. The Island has long been regarded as one of the best regulated offshore centres which has made the most of its low cost base and ability to expand compared with many other offshore centres.

The Island is an internally self-governing dependent territory of the Crown. It is not and never has been part of the U.K. The virtual absence of party politics has helped Tynwald, the local parliament, become the oldest continuous legislature in the world - it reached its millennium in 1979. The British Crown, however, is ultimately responsible for the good government of the common concern, such as defence, immigration and nationality. However, by convention the U.K. Government does not legislate for the Island without consent in matters of domestic concern.

Taxation, in particular, is a matter on which the Island remains completely separate. As quoted by former Chief Minister and now ambassador for the Treasury, Sir Miles Walker:

"Taxation is not a piece of our autonomy that the Isle of Man is prepared to surrender. It is not something which we propose to be dictated to by the OECD, E.U. or even our friends in the U.K. The Island will not amend its tax regime in ways which disadvantage the economy. If it ever becomes desirable for us to make changes to our tax regime, then it will be the Manx parliament, Tynwald, which will make those changes. We will not do it ourselves, for our own reasons and in accordance with our own interests."

The Isle of Man has a ministerial system of government headed by the Chief Minister selected by the MHKs from their midst. The Chief Minister selects nine other MHKs to act as ministers with responsibilities for the major government departments and together these ten form the Council of Ministers, the equivalent of a Cabinet, who meet on a weekly basis.

Like most commonwealth countries, the Island's legal system is based on English common law. The Island has its own legal profession, judiciary and laws, many of which originate from the period of Viking rule updated since by centuries of English influence. In certain areas, however, such as taxation, company law and financial supervision, Manx law has been developed to meet the special circumstances of the Island. Manx lawyers are known as advocates and they have an exclusive right of audience in Manx courts, although in special circumstances, English barristers may be licensed to be heard. Legal practitioners qualified in other jurisdictions may be registered to advise on certain legal matters but they do not have the right to appear in court.

The administration of justice is conducted by an independent court system, which follows the English structure.

The Island is a member of the Organisation for Economic Cooperation and Development (OECD) so the OECD convention applies.

The Island prides itself as being a leader in development of regulation and legislation - in 1983 it was the first offshore centre to institute a Financial Supervision Commission, it was the first to introduce a depositor protection scheme in 1991, the first centre to regulate investment businesses and the first to get U.K. designated territory status in 1998. The Island has also led the way with legislation and enforcement powers to combat financial crimes and money laundering.

The Island has sixteen consecutive years of economic growth. There is full employment, no public debt and an inflation rate of around 2.6%.

In the International Money Marketing awards for 2000, the Isle of Man was voted for the fifth consecutive year "Best Offshore Financial Services Centre". At the end of 1999 the Island was awarded the OFFEX awards for "Best Offshore Location for Life Assurance Business" and "Best Offshore Location for Investment Business".

The Isle of Man ranks in the top division in both the FATF (OECD) and the G7 Financial Stability Forum's reports on international financial centres, published in June 2000, winning accolades for the quality of its infrastructure and regulation.

There are no exchange control restrictions in force, nor is there any legislation in place whereby they could be introduced.

The local currency is Pounds Sterling, although the Manx Government issues its own notes and coins.

Communication standards are excellent with state of the art digital technology available.

Time

The Island follows U.K. time on Greenwich Mean Time (GMT) and British Summer Time (BST).

 

About Sovereign Trust (Isle of Man) Limited

Sovereign Trust (Isle of Man) Limited is the Isle of Man member company of The Sovereign Group. Apart from supplying the full range of offshore company and trust incorporation and management services which are available from all other Group offices, the Isle of Man office specialises in the following additional areas of work:-

1. Corporate Services
   We provide ready made or customised incorporation of all types of Isle of Man companies and all related services, including the provision of company secretarial, registered office and nominee shareholder services or full management services from our own licensed directors. To qualify for Exempt status a company must be owned by non-residents of the Isle of Man and must not transact business with other Isle of Man resident companies or individuals. However, it may have locally appointed directors and may maintain bank accounts and earn bank interest within the Isle of Man. For full details of the types of company available visit our Jurisdictions page.
2. VAT Registration
   Many offshore companies that trade in the EU in some circumstances find it impossible to trade because their offshore company is not registered for VAT in the EU. The Isle of Man is one of the few offshore centres where it is possible to register for VAT. An Isle of Man company is therefore the ideal vehicle when services are provided or trade takes place in the EU.
3. The Isle of Man as an Offshore Administrative Base
   The Isle of Man is a suitable base from which to administer an offshore company with minimal tax consequences provided that the company does not do business with Isle of Man resident entities. Offshore companies can conveniently have Isle of Man based directors, an Isle of Man bank account and an Isle of Man office address without (apart from payment of minimal fixed annual duty) being brought into the Isle of Man tax net. Most other countries of the world operate a residency based tax system and care therefore needs to be taken to ensure that the offshore company does not establish a permanent place of business within those countries or is managed and controlled from those countries. For example, an offshore company which had U.K. based directors or which established a place of business within the U.K. may become liable to U.K. tax on its worldwide income.
4. Stock Exchange Listing
   The Isle of Man is one of the few offshore areas which allows for the incorporation of a suitable public company which has the ability to list on a foreign exchange, such as NASDAQ. Listing a company can be an extremely attractive and prestigious option for a number of reasons - as a way of raising money for future expansion, by raising the profile of the company in the eyes of the general public or as a convenient exit route for someone wanting to release all or part of their equity.
   
   The Isle of Man is especially suitable as this jurisdiction is particularly well received in the U.S. and has a better reputation in the eyes of the American public than many of the other offshore jurisdictions closer to the U.S. Where appropriate it will therefore be possible to incorporate a holing company within the Isle of Man and it is this company which would provide the vehicle for listing the U.S.
5. Yacht Registration
   Yachts registered in the Isle of Man are registered as British ships under the Merchant Shipping Registration Act 1991 and once registered are entitled to fly the British Red Ensign with all of its attendant advantages. Although the Isle of Man Marine Administration will only register yachts which are owned by the Isle of Man or EU nationals or nationals of U.K. dependent territories, foreign nationals may obtain the advantages of Isle of Man registration by having their vessels owned by an Isle of Man company. We are able to assist with transfer of ownership to an Isle of Man company and all registration formalities.
6. Second Nationalities & Permanent Residencies
   We are also frequently asked to advise clients on how to take out a second nationality or obtain a right of residence in another country. As a result, in common with other Group offices, we advise upon immigration programmes run out of Belize, Dominica, Ireland, U.K. Canada, U.S.A., Turks & Caicos Islands, etc. Some of the available schemes allow the applicant to obtain an immediate second citizenship and passport for a relatively modest investment of around £35,000. Others require greater levels of investment and a substantive period of residence before nationality can be applied for.