Population
The population of the Isle of Man is approximately 70,000 resulting in a population density of roughly 120 people per sq. km. A third of the population live in Douglas, the island's capital, and its suburbs.

Political Structure
The Isle of Man is a British Crown dependency. It has its own Parliament (Tynwald) which legislates on all domestic matters including taxation. Tynwald consists of two houses, namely the Legislative Council and the House of Keys. The Legislative Council consists of eight Members, elected by the lower house, the House of Keys, and the Bishop and Attorney General, neither of whom has voting rights.
The House of Keys has twenty-four Members who are elected and serve a five-year term. HM Queen Elizabeth II holds the title Lord of Man, and is ultimately responsible for the government of the Island , and all legislation passed by Tynwald has to have Royal Assent before being enacted.
The Isle of Man is not a Member of the European Union, but enjoys a special associate status by virtue of Protocol 3 of the Treaty of Accession of the United Kingdom to the Treaty of Rome. In addition, by virtue of a Customs Union with the UK , the Isle of Man has an identical VAT system to the UK and is thus treated as being a part of the EU trading system.

Infrastructure and Economy
The Isle of Man , confronted with a decline in its two principal sources of income, agriculture and tourism, now places greater reliance upon industrial investment and its financial centre activities.
The island has quickly become one of the world's key offshore players over the last ten years, a highly regulated, financial center with a highly educated work force. Over 45 per cent of the IoM's GDP is earned from offshore financial services, surpassing its tourism industry as the main revenue earner.
The Isle of Man is served by Ronaldsway Airport in the South of the Island , some 8 miles from Douglas . There are regular daily air and ferry services to the UK and Ireland , but there are no direct international links.

Language
The official and spoken language is English.

Currency
The Manx Pound, which is on par with the UK Pound. The Island issues its own notes and currency, which are interchangeable with UK currency on the Island.

Exchange Control
The Isle of Man has no exchange controls.

Type of Law
Common Law based on English Common Law.

Principal Corporate Legislation
The Companies Acts 1931 to 1993, the International Business Act 1994 and the
Limited Liability Companies Act 1996.

Type of Company

• Exempt Company, although the exemption will require annual renewal.
• Non-Resident Companies.
• International Companies.
• Limited Liability Companies.

Restrictions on Trading
Exempt companies cannot trade within the Isle of Man , undertake banking or insurance activities, undertake investment business other than the investment of the company's own assets, or solicit funds from the public nor offer their shares or membership to the public.

Language of Legislation and Corporate Documents
English.

Registered Office
Exempt companies must maintain a registered office in the Isle of Man.

Shelf Companies
Available , but application for exemption must be made after acquisition.

Time to Incorporate
Companies can be incorporated within 10-14 days, but a list of ready made companies are available for immediate purchase.

Taxation on Foreign Profits
Exempt companies pay no income tax, but pay a fixed annual fee of £430 to the Government.

Name Restrictions
The following names are not permitted: a name that is similar to or identical to an existing company, or that is known to exist elsewhere, or that implies illegal activities, or implies royal or government patronage.
Many names require justification or high capitalisation to allow use. Words such as "International", "European" or other words indicating an international presence will only be approved if the Company is incorporated with an authorised capital of £100,000, which must be paid up.
Use of the words "Trust", "Trustees" or "Fiduciary" will only be approved if the company is incorporated with an Authorised Capital of £250,000, which must be paid up.
Use of the word "Holdings" will only be approved if the Company can provide documentary evidence that it holds 51% or more of an underlying company.
Use of the word "Group" will only be approved if the company can provide documentary evidence that the company owns a group of companies.

Language of Name
Names can be expressed in any language using the Latin alphabet, if the Registrar of Companies is in receipt of an English translation and the name is not considered undesirable.

Names Requiring Consent or License
The following names or their derivatives: bank, building society, savings, loans, insurance, assurance, reinsurance, co-operative, council, Chamber of Commerce, trust, municipal and finance or their foreign-language equivalents.

Suffixes to Denote Limited Liability
Exempt Companies must utilise Limited or Ltd as a suffix.

Disclosure of Beneficial Ownership
Beneficial ownership need not be declared.

Bearer Shares
Exempt Companies may have bearer shares but they cannot be allotted directly to the bearer. They have to be allotted in registered form, and then transferred. It is a requirement of the Isle of Man legislation that the Register of Members must state the name and residential address of the holder of bearer warrants.

Authorized and Issued Share Capital
Exempt Companies have a normal authorised share capital of 2000, or its foreign currency equivalent, this being the maximum for the minimum capital duty payable upon incorporation.
The minimum issued capital is one share of par value.

Currency of Capital
Share capital can be expressed in any currency.

Shareholders
The minimum number of shareholders for Exempt Companies is one.

Directors
The minimum number of directors is two and must be natural persons only, i.e. corporate bodies may not be appointed as directors. Exempt Companies are required to appoint at least one resident director.

Company Secretary
A company secretary is required and must be a natural person, resident in the Isle of Man , and must hold a professional qualification.

Company Seal
Required to be kept at the company's registered address.

Public Record of Shareholders
Details of the shareholders must be filed on the public file but anonymity can be preserved by the use of nominee shareholders.

Public Record of Directors
The names and addresses of the directors are lodged with the Registrar of Companies and this information is available to the public but anonymity can be preserved through the use of third party professional directors.

Shareholders and Directors' Meetings
Shareholders Annual General Meeting must be held at which financial statements are to be presented.

Double Taxation Treaties
Apart from a limited treaty with the UK , the Island is not party to any double taxation treaties.

Licence Fees
An Isle of Man Exempt Company pays 400 per year, which is due on 6 th April.
The exempt fee payable to the Isle of Man Government is £430 per annum, payable in the first year upon application and annually thereafter before 30th June.
To make a first-time application for exemption a company is required to complete forms TEC1 (signed by a director of the company) and TEC1(u), signed by a Manx-resident director of the company. The completed forms should be submitted to the Income Tax Division together with the appropriate fee: £400 if the application is received not later than 30th June in the year of assessment; £1200 if the application is received after 30th June but not later than 30th September. If unpaid by October 1, the company will be subject to Isle of Man tax (20%). 
From 6 April 2001 the annual duty payable by a Manx exempt company increased by £30 to £430.

Annual Filing Requirements
Annual audited accounts are not required for filing, only an annual return which carries a £50 fee. However, non-resident companies have to pay £800 with the filing of their annual return.
There is a late filing penalty of £100, and companies are struck off after non-filing of two annual returns.

Financial Statement Requirements
Whilst there is no requirement to file audited accounts with the authorities, a company is required to keep financial records which reflect the financial position of a company. The Assessor of Income Tax reserves the right to call in the accounts.

Change in Domicile
Not permitted.

Advantages
For the international investor, The Isle of Man 's advantages include:

• Low taxation for companies and individuals. Excellent financial supervision and regulation. 
• Government committed to supporting international financial activities. 
• Strong economy. 
• Long-term stability and independence. 
• Trust and company law based on principles of English Common Law. 
• Excellent world-wide communications. 
• Low costs.
• Financial services of the highest caliber.
• No Isle of Man or UK estate or gift taxes.
• No Isle of Man or UK capital gains taxes.
• No Isle of Man or UK income tax for non-resident individuals and companies.

Disadvantages
Can be expensive for non-trading operations.