The Isle of Man Companies Acts 1931 to 2004, also known as the 1931 Act, is the law under which most Isle of Man Companies are established. It replaced the existing 1865 Isle of Man Companies Act and closely follows a template based on the English Companies Act 1929.
Although the original 1931 Act still contains the majority of the operative provisions, it has been amended and supplemented by various additional Companies Acts and other relevant legislation over the years.
Companies in the Isle of Man can also be formed under the Isle of Man Companies Act 2006 and the Isle of Man Limited Liability Companies Act 1996.
Introduction
As a result of its close relationship to the English Companies Act 1929, the Isle of Man Companies Act 1931-2004 follows the traditional English corporate framework for establishing companies. Companies formed under the 1931 Act can be limited by shares, limited by guarantee, be limited by guarantee and have share capital and have share capital with unlimited liability.
Background
Despite the enactment of the Limited Liability Companies Act 1996 and the Isle of Man Companies Act 2006 - which is both more modern and flexible, the 1931 Act remains the Act of choice for most locally incorporated businesses in the Isle of Man. The principal reason for this is one of cost as unlike the other Manx companies acts the 1931 Act does not require the appointment of a professional Registered Agent who must be licensed by the Isle of Man Financial Services Authority.
Incorporation
In order to incorporate a 1931 Act Company, it is necessary to file an Isle of Man Registry Form 1, a Memorandum of association and Articles of association at the Isle of Man Companies Registry together with the prescribed fee