New Act offers new style corporate vehicle in Europe

The Isle of Man treasury has announced that the Isle of Man Companies Act 2006 has become Law.

The Act updates and modernises the Islands Company Law, by introducing a new simplified corporate vehicle into Isle of Man Law.

It is a development of the international business company (IBC) model, available in a number of other international business centres and is fully in line with recognised benchmarks.

The initiative was led by Isle of Man Treasury and involved extensive consultation with the Isle of Mans finance sector. The Act provides a streamlined process for setting up and running a company in the Isle of Man and complements the zero rate company tax strategy introduced in April this year.

This �corporate package oflegislation has been tailored for business, and has the flexibility to enable new application of the corporate vehicle in line with future market developments.

John Aspden, Chief Executive of the Financial Supervision Commission, said: �The new Companies Act offers a simplified regime, including speed of incorporation, flexibility and ease of administration, whilst at the same time meeting key expectations in terms of disclosure and corporate governance.�

The Act has been designed for a range of corporate transactions. It is likely to be particularly useful for public offerings, securitisations, asset and project finance.

Allan Bell MHK, Treasury Minister of the Isle of Man, said: �When combined with the Isle of Mans zero tax strategy and the existing benefits which the Island offers through our strong professional infrastructure, the new Act places the Island at the forefront of European domiciles for company structures and servicing.�

The Act, which marks the biggest change in Isle of Man Company Law for 75 years, was approved by the Islands Parliament, Tynwald, during the summer and Royal Assent was received on 14 October 2006.