The Isle of Man is one of three Crown Dependencies of the United Kingdom, the other two being Jersey and Guernsey. The legislation of all three Islands now allow for companies incorporated in one jurisdiction to discontinue and continue in one of the others.
The Isle of Man can offer substantial advantages over the Channel Islands. In Jersey, office space costs, on average, three times more than in the Isle of Man. The costs for staffing is also twice as expensive in Jersey. It is not surprising then, that fees for Jersey incorporated companies are around three times higher than the Isle of Man equivalent. This has led many shareholders to question whether the advantages offered by a Jersey corporate structure is worth the increased cost of maintaining that structure.
In recent years there has been an increased movement of UK and foreign property holding companies from Jersey into the Isle of Man. The absence of inheritance tax in Jersey means that it is more beneficial to hold shares in a Jersey company, rather than directly owning the property itself. However, many investors are now questioning how much they have to pay for these benefits and many companies are leaving the warmth of the Channel Islands to take up home in the middle of the Irish Sea. The inheritance tax benefits are the same but the costs are not.
In addition a company re-locating to the Isle of Man will usually continue as a company constituted under the Isle of Man Companies Act 2006. These companies have the following benefits:
Structure: only one director (individual or corporate) need be appointed Administration: there are less onerous reporting requirements Capacity: unlimited corporate capacity however restricted objects are permissible
Charterhouse Lombard Limited, using our in-house computer system from Microgen, has streamlined the administration costs of moving companies from other jurisdictions to the Isle of Man. Consequently, despite the high level of Registry fees and other disbursements, we are able to move a company from Jersey to the Isle of Man for an all in fee of only £4,000.
Therefore, a company moving its registered office from Jersey to the Isle of Man with Charterhouse Lombard Limited can quickly recover the cost of the move. Thereafter the company will realise substantial savings from the move and continue to reap the benefits of its new jurisdiction.