Isle of Man: Business Environment
This page was last updated on 24 January 2020.
The Isle of Man is a well-regulated offshore jurisdiction that has a sophisticated professional infrastructure and benefits from an open-door immigration policy. This means that Manx enterprises can recruit good people - something which has become increasingly difficult in the Channel Islands.
The legal market is dominated by the two largest firms and one large London practice has a local office. Its main attraction as an offshore jurisdiction is its highly developed system of client protection, ranging from mandatory professional indemnity insurance for law and accountancy firms to the depositor compensation scheme for bank depositors; the Collective Investment Schemes (Compensation) Regulations 1988 provide for the establishment of a compensation fund for investors.
Furthermore, the Isle of Man has ‘designated territory’ status under the UK Financial Services Act 1986. New legislation is also envisaged for the licensing of 'corporate service providers'. Such a level of client protection and regulation has made the island an attractive jurisdiction for the investor by attracting top of the range professional firms.
Lawyers are not permitted to work on a contingency fee basis. Partners' time is usually charged at GB£225-275 per hour. Other fee earners are charged at from £50-£150 dependent on the type of work.
The business community in the Isle of Man is strongly supported by approximately 80 chartered accountancy practices, ranging from the sole practitioner to representatives of the 'big five' accountancy firms. The Isle of Man Society of Chartered Accountants represents the interests of approximately 350 members and acts as a voice for the profession in liaison with government.