For the Savvy Nigerian entrepreneur looking to start up or invest in an existing business in the UK and its environs, the rapidly-growing Isle of Man offers a more business-friendly option to establish a thriving business.
Located right in the middle of the Irish sea, roughly equidistant from England, Ireland, Scotland and Wales, the Isle of Man has never been a part of the UK, EU or the EEA. The island with only approximately 85,000 residents exists as a self-governing British Crown Dependencywith its own political and economic affairs, while still under British sovereignty and having easy access to the UK.
From an easier migration process to a potentially wider range of business opportunities, Kinley Legal gives you the top 7 reasons why you should consider setting up your business in the Isle of Man instead of the UK.
Top 7 Reasons to set up on the Isle of Man
A Rapidly growing Economy with Potential For Diverse Businesses
Unlike the UK’s economy which has witnessed stagnation in recent decades and a decline in productivity, the Isle of Man is well into its 4th decade of continuous economic growth.
The strength of this Island’s Economy is its diversity and ability to adapt to and embrace a wide range of business sectors.
The economy has seen a rapid growth in the tech and e-commerce sectors with e-gaming taking up a 21% share.
Examples of businesses you can set up are given here but this is not an exhaustive list of potential businesses:
1.Software and IT projects;
2.Light manufacturing of original consumer products;
3.Processing of lightweight goods new to the British market;
4.Professional consulting services not generally available in the British market;
5.New healthand beauty products and services;
6.Original food/agricultural products (but not restaurant, café or catering business)
A Straightforward Endorsement Process
Unlike in the UK, there is only one endorsing body on the Isle of Man, the government department responsible for encouraging business.There is no government fee for endorsement; on the contrary, the government has a range of grants and financial incentives to new businesses arriving in the island. This means that it is easier to get your business plan endorsed and acquire a business migrant visa in the Isle of Man via the innovator or start up immigration routes than in the equivalent routes in the UK.
In contrast, in the UK’s innovator and start up routes, you would be required to persuade any of the various registered endorsing bodies such as a university or tech incubator to endorse your business plan, after which you may well be required to pay ongoing business support and mentoring fees to the endorsing body.
No NHS Surcharge
Unlike the UK, the Isle of Man does not chargeup-front NHS surcharge fees in its visa application requirements which gives you visa fee savings of £624 per year per adult. You can still use the health services just as a local would.
Access To Business Training, Grants And Support
The Isle of Man Government offers grants to both newly established and existing businesses .
In 2016, the government invested over GBP4.5m in local businesses, across a range of sectors.
Lower Tax Rates For Businesses And Individuals.
The Isle of Man is considered a low-tax jurisdiction. The island does not have any corporate tax, capital gains tax, wealth tax, stamp duty, or inheritance tax and has a lower personal income tax of 10% to 20% which is more favourable than in the UK. For most corporateorganisations on the Island, the standard rate is 0%. In the UK,organisations are subject to 19% corporate tax paid on their profit, as well as higher personal income taxes, all of which makes for better business profitability on the Isle of Man .
Superb Network Interconnectivity
The Isle of Man is served by several airlines which provide regular flights to major UK gateway airports like London Heathrow, London Gatwick and Manchester, with flight times of approximately one hour.
The Island’s shipping company sails to Englandat least twice a day and runs seasonal ferries to Ireland.
This is convenient for light industrial entrepreneurs who might wish to import raw materials from outside the Isle of Man and export finished goods out of the island. The Isle of Man is part of the UK’s VAT area, meaning that there are no tariffs and few formalities for passengers or freight.
The island boasts strong internet connectivity. with as much as 97% of the island’s residents having access to 4Mbps+, which is a must for any business that wants to stay connected
Comparable Quality of Life to the UK
In 2019, the island was ranked the best place to live in the British Isles, with over 74% of residents saying their quality of life improved on moving to the island .The isle of Man also boasts its fair share of wealthy residents and is home to a number of celebrities.
What Are The Requirements For Migrating To The Isle of Man via the Innovator or start up routes
- applicants applying for the business migrant route must be at least 18years old
- Must have an original, viable and scaleablebusiness idea(a business or service not currently existing on the island)
- Must be citizens of a country other than Britain or Ireland
- Must have at least NGN40,000,000 (for the Innovator route) or NGN15,000,000 (for the Start Up route).
For more details on what is required to migrate to the isle of Man as a Nigerian entrepreneur through the business migrant routes you can contact us at kinleylegal.com/nigeria.
At Kinley Legal, our team of dedicated lawyers have years of solid experience in handling migration and set up for entrepreneurs relocating to the Isle of Man from Nigeria.