Info about IOM companies

[DeutschSamoaner]

Hello friends,

Hoping that everyone is doing alright. I have looked into the possibilities of the company registration in the Isle of Man. It seems pretty favourable, as the corporate income tax is 0%. Now, as we all know, all those jurisdictions are full of "magical fees", so I would like to ask some of you who own a company there to tell me your experience. Moreover, their pension and social contribution system is somehow unclear to me, so if somebody could explain it how it works in practice, I would be much obliged.

I appreciate any advice I get and all the best to the community.

 

[JohnnyDoe]

The IOM is pretty useless except for some specific sectors. It has already been discussed here, use the search function and you will find useful information on the aberrations of that place.

 

[DeutschSamoaner]

Thanks a lot, mate, I will do it.

 

[Sols]

Isle of Man has its uses and purposes. I've never had any significant problems with hidden fees in Isle of Man when working with locally licensed CSPs/trustees. The regulations around transparency of pricing are strict and generally complied with. Avoid resellers, though.

Banking options are pretty decent, if your business fits the appetite of any of the local banks.

I don't understand what you're asking about regarding pension and social contribution. If you hire someone locally, there is somewhere around 15-20% total in various payroll taxes, IIRC. There are tiers and caps that affect the effective rate you pay as an employer.

 

[DeutschSamoaner]

Thanks a lot for your reply. I meant to ask about pension and social contribution obligations for me. As I am planning to start a limited company there, what are my obligations in regards to pension and social contribution? I realised I forgot to mention that it would be a resident company, as I have the right of residence there. I've heard some of these jurisdictions have weird hidden fees in that regards. Also, any banks you would propose for that kind of company? I will try with Wise first, if it doesn't work, I can try some local bank.

 

[Sols]

I meant to ask about pension and social contribution obligations for me. As I am planning to start a limited company there, what are my obligations in regards to pension and social contribution? I realised I forgot to mention that it would be a resident company, as I have the right of residence there. I've heard some of these jurisdictions have weird hidden fees in that regards.

It depends on how you pay yourself and how much you pay yourself. Dividends are treated differently from salary, for example, and because of the different tiers and caps, it's hard to say with much certainty.

Would recommend speaking with a tax adviser. The tax code is a bit convoluted a few hours of a good tax adviser's time can save you a lot of time and money.

Also, any banks you would propose for that kind of company? I will try with Wise first, if it doesn't work, I can try some local bank.

Wise is good. Of the local banks, I've had good experiences with for example Capital International, Standard Bank, and HSBC for business banking. It depends on what your company does.

 

[DeutschSamoaner]

Thank you for clarifying that. I will consult a tax adviser, to see what they say about it. If anyone else has any "on-site" info to share about resident companies and its taxation and leadership, feel free to write them.

 

[daniels27]

If you are resident, you can do pretty much all yourself. Also the company registrations will cost you considerably less for resident than offshore. It should be like 500 vs. 5000 to 10000 and without hidden fees in you case. I think you can get a nominal salary and the rest as dividends. Not that you will pay the regular 20% tax on dividends and salary.

For the social, just get the registration company to handle it at least the first year. The whole bookkeeping will cost you 1500 for the year. You can turn still decide to do it yourself the subsequent years.

As far as I know you only need an agent to register you company. From there on you can do all yourself without hidden fees.