AIM and Isle of Man Companies
The last twelve months have seen a steady stream of new admissions to the Alternative Investment Market (AIM). Research conducted by Hemscott at the end of October 2011 has shown the sle of Man to have a market share of 18.6%, up from 16% in 2010.The current market capital of non-UK AIM 100 companies registered in the Isle of Man stands at £1147 million (£1.14 bn).
Isle of Man success factors for the AIM Market
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The Isle of Man has been in the vanguard of moves towards transparency and regulation in international business and is recognised as one of the best regulated offshore financial centres.
- The Isle of Man is an English-speaking jurisdiction in the same time zone as London. The City of London is only a one hour flight from the Isle of Man.
- The Isle of Man has traditionally offered a tax neutral jurisdiction from which to base efficient international tax planning. This offering has now been simplified and enhanced. The general rate of corporate income tax in the Isle of Man is 0% (with the general exception of banking and income derived from land and property in the Isle of Man).
- No capital gains tax or stamp duty.
- An Isle of Man public limited company listed on AIM is not a regulated entity in the Isle of Man and the administration of such a company is not regulated as fund administration. Therefore no fund regulation of closed ended investment companies.
- Familiar corporate structures. The Isle of Man shares its company law heritage with England and other common law jurisdictions. City lawyers and advisers are comfortable dealing with Isle of Man companies. As a result deal costs can be minimised.
- The Isle of Man has a well-established and well-regulated infrastructure for the provision of corporate administration services.
- Common law legal system. The laws of the Isle of Man in most areas are very similar to those of the UK. In particular, credit security concepts are the same, so London-based banks and their lawyers are comfortable dealing with Isle of Man companies, minimising financing costs.
- The Isle of Man Government offers inward investment incentives to certain businesses looking to establish substantive operations in the Isle of Man.
- The Isle of Man is investment graded and perceived as a viable alternative to Caribbean and Channel Island jurisdictions.
- Isle of Man cost base represents excellent value for money.
What is the Isle of Man AIM opportunity?
International Business
- Take advantage of increasing popularity of AIM to raise capital
- International businesses with international shareholder base may benefit from using an offshore vehicle
Closed-ended Investment Companies
- Alternative funds expertise on-Island makes it a good base for closed-ended investment companies
- Not subject to fund regulation
E-Businesses
- The Island is keen to attract e-businesses to relocate
- Inward investment incentives available
- Flexible regulatory framework
