As of November the 1st 2006 the Isle of Man has become the most competitive jurisdiction in Europe for the formation and operation of international business companies because the jurisdiction has exacted significant and far reaching changes to company law within The Isle of Man Companies Act 2006.
The changes to Isle of Man offshore company structure and management operations were given Royal Assent in October and came about after an extensive period of consultation and research by the Isle of Man Treasury which was determined to make the IOM the most attractive European jurisdiction for the formation of IBCs and offshore companies.
The Isle of Man Companies Act 2006 is also known in the industry as the New Manx Vehicle or NMV and it was enacted to bring the Isle of Man company law up to date and to allow for a significant simplification of the process to structure, incorporate and manage an offshore company or IBC in the Isle of Man.
Most companies already in place in the Isle of Man which were incorporated under the previously operational Isle of Man Company Legislation or the Companies Acts 1931-2004 can now convert to become IBCs governed by the rules of the New Manx Vehicle - and according to experts within the financial services industry more and more companies will be seeking to change because the new legislation is just so conducive to the smooth and simplified running of an IBC.
Under the new act companies can be incorporated far more quickly, there is far greater flexibility of use and protected cell companies are permitted, reporting requirements and merger or consolidation procedures are simplified and registered agents can take the place of company secretaries. Furthermore, The Isle of Man Companies Act 2006 has been specifically designed to be effective and flexible when it comes to companies listing for public offerings or seeking asset or project finance for example.
Finally, not only does the NMV allow for the simplification and smooth running of IBCs but the new act maintains the Isle of Man’s strict policies of adhering fully to international standards and guidelines relating to disclosure and corporate governance making the New Manx Vehicle an exciting and well structured development in the world of offshore company incorporation.
