United Kingdom vs Isle of Man
The United Kingdom is £1,510 cheaper in year 1 and £930 a year cheaper after that.
| United KingdomPrivate limited company (Ltd) | Isle of Man1931 Act or 2006 Act company | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £170 | £1,680 |
| Minimum, per year after | £50 | £980 |
| Typical year 1 | £1,510 | £3,580 |
| Government fee | £100£100 online | £100About £100 |
| Indirect setup | £20–300 | £600–1,500 |
| Running per year | £50–2,600 | £980–3,880 |
| Share capital | £1 | £1 |
| Rules | ||
| Directors | No local director | No local directorYou need a licensed registered agent. |
| Remote setup | Fully remoteDirectors must verify their ID with Companies House. | Through a providerRemote through a licensed corporate service provider. |
| Audit | No audit for small companies | No audit for small companies |
| Time to form | 1 to 2 days | 1 to 3 days |
| Ease for foreign owners | 5/5 | 3/5 |
| Tax and banking | ||
| Corporation tax | 19% / 25%25%, or 19% on profit under £50k. | 0%0% for most companies. Banking and large retail pay 10%, Isle of Man property 20%. |
| Dividend withholding | None | None |
| VAT / GST | 20% | 20%VAT 20%, as in the UK. |
| Banking | 3/5High street banks often refuse non-residents. Wise, Revolut, Airwallex and Tide usually work. | 3/5Isle of Man and UK banks. Easier than most offshore centres. |
| All company setup fees in the United Kingdom | All company setup fees in the Isle of Man | |
Questions
Is the United Kingdom cheaper than the Isle of Man for company setup?
Yes. The United Kingdom costs at least £170 in year 1, against £1,680 for the Isle of Man.
Which is cheaper to run each year?
The United Kingdom, at least £50 a year against £980 for the Isle of Man.
Which needs a local director?
Neither. You can run a company in either without a local director.
Which is faster to set up?
The United Kingdom, in 1 to 2 days. The Isle of Man takes 1 to 3 days.
How does corporation tax compare?
The United Kingdom: 25%, or 19% on profit under £50k. The Isle of Man: 0% for most companies. Banking and large retail pay 10%, Isle of Man property 20%.
Sources: Companies House · PwC · Isle of Man Government