Applying for a business name

If you are looking to run the business under a name that is not your own, you must apply for and register the business name. [e.g. If your name is Joe Bloggs, but you want to call your business ‘Joe Bloggs’s Kitchens’.]

1. Before you set up the company or business and start incurring costs, it is important that you check name availability. You can do this via a name search online here.

2. Before registration can take place, the chosen name must then be approved. You can do this here.

3. You must choose a name that is unique, distinctive and not too similar to that of another company or business.

4. No check is made of Trade Mark or business registers in other jurisdictions. Therefore, you should be confident that your chosen Business Name does not lead to conflict with a name that has already been established elsewhere. You should also check online to see if any other business is already using the name. If it is, you could face legal difficulties.

Registering a business name

Once you have approval of your business name, and have

commenced business, you should apply for registration of the business name within one month.

There are 3 types of applications to register a business name:

· BN1 Application by an individual

· BN1a Application by a partnership of two or more individuals or companies

· BN1b Application by a corporate body

The relevant form should be completed and sent to the Companies Registry along with the registration fee of £50.00. At present, there is no annual fee to keep the company registered; just the one-off registration payment applies.

Once processed, a Certificate of Registration will be issued by post showing the Business Name, place of business and date of registration.

More information on registering a business name.

If you are just starting out it may be worth holding off registering your company at this stage. You are permitted to run your business as a self employed individual without registering it as a company, but you must be aware that you are personally liable for the debts incurred by the business.

However, you may wish to register your business to limit some of your personal liability and form a company structure to support your business to grow and develop. In the Isle of Man there are two types of company act which you can incorporate your company under:

A. 1931 Act Company

B. 2006 Act Company

If your business has a physical presence in the Isle of Man and is competent with basic administration then a 1931 Act Company is probably best suited for you. Often businesses incorporating under this Act are part of the domestic trading sector.

The 2006 Act Company legislation was initially designed for investment structures and is most suited to businesses with an international presence that are looking to reduce their statutory filing administration, and employ a Registered Agent (Corporate Service Provider) to do this on their behalf.

The key difference between the two is that you can incorporate a 1931 Act Company yourself, however if you wish to incorporate a 2006 Act Company you must employ a registered agent who is regulated by the Isle of Man Financial Services Authority (FSA), to submit the incorporation papers. There will be additional costs associated with this, which varies dependent on the risk of the company and the Corporate Service Provider (CSP)’s rates.

There is usually an initial cost for the incorporation service and then annual fees for filing documents and changes with Isle of Man Companies Registry. You can find a licensed, Registered Agent on the FSA website here. [In the search box - select ‘current entity’, and then under business type select ‘corporate services’.]

You could also use a Lawyer or an Accountant to help you set up your company.

1. Choose the type of company you would like to incorporate:

(a) a company limited by shares; (this is the most common type of company registration)

A company that has the liability of the members limited by such an amount that is unpaid on their respectively held shares.

(b) a company limited by guarantee; (this is used mostly by not for profits and charities)

A company limited by guarantee does not have any shares or shareholders but is owned by guarantors who agree to pay a set amount of money towards company debts. No profits will be distributed to the guarantors as they will instead be re-invested to help promote the non-profit objectives of the company.

(c) a company limited by shares and by guarantee;

(d) an unlimited company with shares;

An unlimited company is very much like a regular private company limited by shares. The main difference arises when insolvency occurs and the company is unable to pay off its debts, the creditors will be able to use the personal assets of the directors and shareholders in order to pay off the liability.

(e) an unlimited company without shares; or

(f) a company limited by shares incorporated as a protected cell company

A PCC is limited by shares and is regarded as a single legal entity in its own right. However a PCC is distinct from a normal company limited by shares in that it has the ability to segregate and protect its assets in separate cells.

2. Decide if you would like a public or private company

3. Choose your company name – you’ll also need a registered office address in the Island for your Company

4. Choose your directors and a company secretary – you’ll need addresses and other personal details for each person

5. Prepare your Memorandum and Articles of Association. You can find a guide to contents/template here

6. Check what records you’ll need to keep

7. Register your company by filling in and filing Form 1 and send this to Companies Registry, Registries Building, Deemsters Walk, Bucks Road, Douglas IM1 3AR along with your memorandum and articles and the correct fee*

8. Once all documents have been checked and processed you will then receive a Certificate of Incorporation for your new Company

* 2020 Companies Registry Fees

· Standard incorporation of a company occurs within 48 hours of receipt of documents, and costs £100

· A 2 hour incorporation of a company costs £250* **

· A 'while you wait' service is available, and costs £500* ***

More information & Practice notes

More information in relation to a 1931 Act Company can be found here

Practice Notes for a 1931 Act Company can be found here

Application Forms

All application forms for 1931 and 2006 Act companies are available here

Once your company has been formed, you might want to register for your business’s chosen domain name so you can create a website for the business, if you decide that this is a good channel to reach your target customers.

A domain name is effectively the online address for your website.

An example domain name and the terms allocated to each part is shown below.

To register your domain name under the .im National Top Level Domain (TLD), visit www.nic.im which is the Isle of Man Domain Registry. But you can also register .im addresses through many global domain name providers.

In addition to this, you may wish to register your domain name under other popular global TLDs such as:

.com, .net, .edu, .biz, .info, .org, .co.uk, .org.uk, .net.uk, .plc.uk and .ltd.uk

It is advised you check availability of your domain under Isle of Man National TDL and other popular global TLDs to ensure it is available under both before purchasing your domain name. Typically you will purchase a domain for at least 1 year, and this will cost you around £40 per domain.

Following this, you will be able to go ahead and host your domain online through a website hosting service (incurs a fee), and build the website with your chosen developer or create your own through free website providers such as Wordpress.

Ensure that expiry of domains is maintained; these will usually need to be renewed annually unless you tick to auto-renew. It can be difficult to retrieve your domain if it is not renewed.

Intellectual Property (IP) refers to inventions; literary and artistic works; and symbols, names and images used in commerce. This is something you may want to consider in your business planning.

Why protect IP?

Your IP rights are important because they can:

• set your business apart from competitors
• be sold or licensed, providing an important revenue stream
• offer customers something new and different
• form an essential part of your marketing or branding
• be used as security for loans

IP creates exclusive rights in a wide range of things including but not limited to, novels, music, art, films, television broadcasts and performances through to computer programs, dress designs, pharmaceuticals, databases, and logos.

A good way to learn more about IP is to undertake the UK Intellectual Property Office’s online training tool here.

IP in the Isle of Man

In the Isle of Man the Department for Enterprise is responsible for IP policy and legislation. In this jurisdiction, IP underpins areas such as e-gaming, manufacturing and engineering and clean technology and is therefore of economic benefit to the Island.

There are several distinct categories of IP and more information on the distinct categories of IP can be found here.

How to register

The Isle of Man follows the UK very closely on the matter and therefore does NOT have its own design right, patent or trade mark registry office.

Isle of Man Businesses looking to protect their Design Right, register for a Patent, or Register for a Trade Mark must do so via the UK Government’s Intellectual Property Office.

It doesn't matter if you work from home, in a busy office, sell products online or offer your services face-to-face, there are risks associated with every type of business. Mistakes can happen, equipment might get damaged or break down and clients can accuse you of negligence. Small businesses often aren't prepared for large, unexpected expenses due to a claim, so it's important to have the right insurance in place.

Similarly, if you’re self-employed and something goes wrong, you’ll be the one responsible for footing the bill. So insurance for the self-employed is crucial.

You may want to consider the following types of insurance for your business:

Public and Product Liability

Covers you if you cause injury to a member of the public or accidentally damage someone’s property.

Professional indemnity

Is useful if your business offers a service or requires you to give advice to clients. It covers any legal and compensation costs you are required to pay. Clients will often ask to see proof of professional indemnity insurance before agreeing to work with a new contractor.

Buildings Cover

Essential for businesses that supply goods or rely on specific equipment to run their business. Insure your business contents so that if they're damaged by an insured event, such as fire or theft, your business keeps going.

Contents and stock

If there is an insured event such as flood or fire at your work premises, buildings insurance will cover the costs of repairing the damage, helping you get back up and running. Equipment breakdown cover (for items forming part of the building) is included as standard.

Business Interruption

If your working premises became unusable due to an insured event like a fire or flood, this will cover the costs of relocating until it’s fixed. It can also cover you for any lost turnover during this time if you’ve insured your premises or business property.

Theft of Takings

If your business handles cash and cheques, this policy will cover you in case of theft from you, your premises or anyone working for you.

Cyber Cover

Particularly important for businesses that trade online or handle customer data. If you are the victim of online cyber-crime, or a malicious hacking attempt, this cover will pay for the resulting costs to your business. It may cover compensation and defence costs resulting from a data breach or unintentional transmission of a virus. It may also cover loss of income in the aftermath of a cyber-attack and the cost of investigating a ransom demand.

Legal Expenses

Covers the legal costs of providing specialist lawyers and taking action against many common legal problems, for instance disputes with suppliers or clients.

Corporate - suitable for purchase by companies, LLPs, most forms of charities and trusts, to protect all directors and certain qualifying senior employees on a blanket basis.

Individual – suitable for purchase by individuals, providing a final layer of protection and necessary if your company is unable to fund a defence or if the action is brought by the employer itself.

If you are interested in purchasing any type of business insurance in the Isle of Man, a list of local insurance brokers for you to choose from can be found here.

Employment Law

If your business already has employees, or you are looking to hire new employees, it is important to understand Employment Legislation and maintain good industrial relations.

You will need to provide a written statement of terms and conditions if the employment relationship is to last for longer than a month. You may also want to consider preparing a more comprehensive employment contract and fully understanding your rights and obligations as an employer as well as the rights and obligations of the employee.

The Manx Industrial Relations Service (MIRS) is an independent, Government funded organisation whose job is to promote good industrial relations in the Isle of Man. MIRS offers impartial and free advice to employers.

Visit the MIRS website to download factsheets, guides and templates which can help guide you with employment-related issues. There is also a list of FAQs and Myths around Employment law which are useful to read and consider

Contact the team:

Manx Industrial Relations Services

Ground Floor

Imperial Buildings

Bath Place

Isle of Man

Telephone Number - +44 1624 672942

Email address: iro@mirs.org.im

Employment Law

If your business already has employees, or you are looking to hire new employees, it is important to understand Employment Legislation and maintain good industrial relations.

You will need to provide a written statement of terms and conditions if the employment relationship is to last for longer than a month. You may also want to consider preparing a more comprehensive employment contract and fully understanding your rights and obligations as an employer as well as the rights and obligations of the employee.

The Manx Industrial Relations Service (MIRS) is an independent, Government funded organisation whose job is to promote good industrial relations in the Isle of Man. MIRS offers impartial and free advice to employers.

Visit the MIRS website to download factsheets, guides and templates which can help guide you with employment-related issues. There is also a list of FAQs and Myths around Employment law which are useful to read and consider

Contact the team:

Manx Industrial Relations Services

Ground Floor

Imperial Buildings

Bath Place

Isle of Man

Telephone Number - +44 1624 672942

Email address: iro@mirs.org.im

Equality Act 2017

The Isle of Man Equality Act 2017 came into full effect from 1st January 2017 and

seeks to provide a unified legal framework to protect individuals from

discrimination in both the workplace and the provision of goods and services.

Compliance with the Equality Act 2017 is a legal obligation, but it also makes good business sense.

Organisations that:

· are able to provide services that meet the diverse needs of its users generally run more efficiently;

· have a culture of a supportive working environment and draw on a wider range of talent, representing a diverse community are generally more productive;

· embody a diverse workforce result in better informed decision-making and policy development.

Find out more about the Equality Act and how it could affect your business here.

MIRS also covers any queries or questions around the Equality Act and fairness in the workplace. Read more about the Act from MIRS, and obtain further guidance here.

When you run a business there may be regulations to comply with imposed by government to ensure that the regulatory environment is fair and effective.

Your business as a whole may need regulating, certain products you produce and sell may be exposed to product safety regulation, and if you are exporting goods, you may need an export licence.

Regulated sectors and their respective authorities are listed in the table below.

Other Licences and Legislation

It may not be a requirement, but you may also wish to licence your operations or obtain a quality accreditation from an industry body to support your value proposition.

As the Isle of Man closely follows UK regulation, to find out whether you need a licence for business activity use this Licence Finder.

To check what applications apply to your product, use this product safety search

The UK’s withdrawal from the European Union (EU) and the resultant Free Trade Agreement with the EU has brought about some changes for business in the

Isle of Man, but unlike the UK the Isle of Man was not previously an EU Member but enjoyed a special relationship with the Union.

This provided for rights of access to the EU market for our goods and the Isle of Man has since been included in the UK - EU Trade and Co- Operation Agreement in a way which ensures manufactured and agricultural goods can continue to be traded freely with the EU while also preserving the Isle of Man’s fishing rights. 

However, while the Isle of Man and UK are together in a common customs arrangement with each other, (so that there are no borders between the two), both the UK and Isle of Man left the customs territory of the European Union.

In that sense, Isle of Man companies which move goods in and out of the EU, will be required to align with the new regime for the cross - border movement of goods, including complying with the new customs and VAT arrangements and regulatory conformity, just as these apply to the UK.

Meanwhile, for services (including digital and financial), the Isle of Man has always been and remains a ‘third country’ in respect of trade with the EU and so these business sectors have not been affected in the Isle of Man in the same way that they have in the UK.

For businesses trading in goods and looking at global markets, the Isle of Man is already party to most of the other free trade agreements which the UK has and

furthermore intends to create additional new market opportunities in both goods and services in tandem with the UK in regard to new trade agreements negotiated.

Businesses planning to serve global markets in goods and services can therefore be confident that they can operate from the Isle of Man with similar rights of access to overseas markets.

Getting a business bank account in the Isle of Man can take anything from a couple of weeks to a few months, depending on the bank and the type of business you are setting up.

Each bank has its own requirements and processes and will conduct security and anti-money laundering checks. You can expect to be asked for some or all of the following:

·Certified copy of your passport and proof of address for each key account party

·Tax reference number

·Business plan

·Certificate of incorporation

·Memorandum & articles of association

·Register of directors and shareholders

·Estimated turnover

·Latest audited financial statements (if you have any)

You will find that the banks require the registered business address to be in the Isle of Man and the business should be registered for tax purposes in the Isle of Man.

Whether you’re looking to buy, rent, find a shared or co-working space in the Isle of Man, it is important to find a suitable premises to work from which suits your business needs.

Local Estate Agents

Property Developers