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Company Limited By Shares

This is probably the most popular form of Isle of Man company, and means that the company has at least one shareholder. It permits the liability of the shareholders to creditors of the company to be limited to the amount unpaid on shares.

For Isle of Man companies, the standard authorised capital on formation is usually £2,000 divided into 2,000 shares of £1.00 each which attracts the minimum amount of Capital Duty payable on formation of £125. Companies having a higher nominal capital will pay an additional £15 duty per £1,000, or part thereof, up to a maximum company duty payment of £5,000 applicable for a share capital of £307,000 and above. An Isle of Man company does not have to comply with any minimum capital requirement.

Capital duty is only payable on 1931-2004 Act companies and not applicable for 2006 Act companies. Therefore should an Isle of Man company look to issue a larger than normal share capital, the 2006 Act company would save considerable expense.