Introduction

OCM is based in the Isle of Man. The Isle of Man lies in the Irish Sea, at the center of the British Isles. It is roughly 33 miles long and 13 miles wide and it has a population of around 72,000. Tynwald, the Manx parliament, is among the oldest in the World. The Isle of Man is not part of the United Kingdom, it is a self governing territory.

Doing business in the Isle of Man is very much like doing business in the United Kingdom. Postal, courier and telecommunications services are all excellent. There are no exchange controls of any nature on the statute book. Full VAT registration services are available for all companies allowing for international trade with other member countries of the European Union if desired. Isle of Man law is closely modeled on English common law. English is the exclusive language of business within the Island. Translation services into other languages are available.

Ronaldsway airport, which is 9 miles from Douglas, the capital, is 50 minutes flying time from London, Gatwick. British Airways operates 3 return flights daily. International travelers can also reach the Island through Glasgow, Manchester or Dublin as well as various regional airports. There is a daily ferry service to Liverpool or Heysham in Lancashire.

The Isle of Man is one of the cheapest financial centers in Europe. Government fees may change from time to time and therefore the level of government fees may be higher than those quoted here.

Quoted rates for supplying a company vary from around £415 upwards. £500 should be sufficient to get a decent service. Before accepting a quote to form a company it is wise to ensure that the quote includes Government charges.

Many international banks are represented on the Island. There is the determination that bank failures should not be allowed to happen. Currently a Financial Supervision Commission (‘FSC’) which is appointed by the Treasury regulates banks and investment businesses. Most of the British clearing banks and building societies are represented in the Isle of Man, e.g. Barclays Bank, Lloyds TSB, Midland/HSBC Bank, Royal Bank of Scotland and so on.

No US bank has a banking operation in the Isle of Man. The major banks in each of Canada and Bermuda have active subsidiaries on the island.

Bank employees are restricted by civil law from disclosing customer details, thus affording anonymity to clients. Recent regulations intended to prevent ‘money laundering’ on behalf of narcotics dealers, insider trading and finance of terrorism oblige bankers to value the possible apprehension of miscreants over the preservation of their clients confidentiality.

Manx based banks must have a net worth of at least £5 million and they are subject to restrictions on the extent and nature of their activities which are more onerous than in most other jurisdictions.