Isle of Man Finance

The Aim Market and Isle of Man Companies

The last twelve months have seen a steady stream of new admissions to the AIM Market. A growing number of new applicants have been Isle of Man companies, which suggests that an increasing number of businesses are realising the advantages of using an Isle of Man vehicle to access the AIM Market.

The Isle of Man now holds just under 5% of all AIM listings. The principal reasons behind the selection of Isle of Man incorporations to access the AIM market are listed below. In total there are 1,549 companies admitted to trade on AIM (as of Sept 2006) of which approx 5% are Isle of Man incorporations. Total market cap of all AIM companies is 73.6 billion (as of Sept 2006).

Some recent examples of Isle of Man incorporations are:

Speymill Deutsche Immobilien Company Plc

• Isle of Man incorporated Public Company
• Investing in German real estate
• Floated on AIM, March 2006
• Capital raised: 170m

Nikanor

• Isle of Man incorporated Company
• Investing in Cobalt / Copper mining
• Largest valued ($400m) AIM floatation in 2006

Clean Energy Brazil

• Isle of Man incorporated company
• Investing in integrated sugar and bioethanol production in Brazil
• Floated on AIM December 2006
• Capital raised: 100 million

Success Factors for the Isle of Man with AIM Market

• 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 as a result of the certainty that surrounds it's high quality legal, fiscal and regulatory environment.
• 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.
• Zero rate corporate tax from 2006. 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. With effect from 6 April 2006, the general rate of corporate income tax in the Isle of Man is 0% (with the general exception of some regulation sectors and income derived from land and property in the Isle of Man). This new regime removes the 'ring-fencing' associated with tax exempt regimes and thus meets the expectations of the international community as regards tax competition.
• There is no capital gains or stamp taxes in the Isle of Man.
• 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 IOM 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-Commerce Businesses

• The Island is keen to attract e-commerce businesses to relocate
• Inward investment incentives available
• Flexible regulatory framework