Manx Limited Liability Company In October 1996 The Limited Liability Companies Act 1996 passed into Isle of Man law introducing the Manx Limited Liability Company onto the statute.
Based on the Wyoming model of the LLC, this corporate entity is a hybrid of a company and a partnership. It retains the company properties of both limited liability and separate legal personality but is treated fiscally as a partnership and is therefore transparent for taxation purposes. It is sometimes used by those involved in international joint ventures as well as trading and private investment companies, particularly those involving nationals of the United States or other countries whose tax regime frequently precludes them from tax efficient participation in foreign corporations or investments.
Manx LLCs are exempt from Isle of Man taxation on their world-wide income provided that they transact no business within the Isle of Man and that the members of the company are non-residents of the Isle of Man. The management of the company is carried out either by the members or alternatively their appointed Operating Manager under the terms of an Operating Agreement that is approved by the members of the company.
Upon their organisation Manx LLCÆs must file their Articles of Organisation with the Isle of Man Registrar of companies.
This document is a matter of public record and must include various details about the company including: (i) The name of the Limited Liability Company (ii) Details of the membership of the company. (iii) The period of the duration of the company (usually 30 years). (iii) The name and address of the Registered Agent of the company.
The Company is also required to file an annual return with the registrar of companies. This document must disclose changes in the membership of the company as well as the details of any operating manager appointed by the members.
No financial accounts are needed to be filed with the registrar of companies. An Isle of Man LLC is not subject to the Isle of Man corporate charge.