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Overview
Although, Isle of Man is under British dependency, it is self-governing and not bound by the laws of the UK. The Island is famous as a low tax economy with zero capital gains tax, wealth tax, stamp duty, or inheritance tax. Also, the island is extremely favorable for business as it has 0% Corporate Income Tax. It is considered as a banking and financial services hub with tourism also making a significant contribution to the economy.
Incorporation & obtaining license: 3 months after application submission
Overview
OGRA License covers all games where:
- ▪they use telecommunications (phones, internet, servers, etc.);
- ▪they involve players betting money (or money’s worth);
- ▪the games incorporate any element of randomness or chance.
The full gambling license in The Isle of Man is valid for 5 years.
A network services license must be obtained if the operator wishes to allow one or more foreign registered players on to its Isle of Man server without reregistering the player details.
All of the benefits of a full OGRA license are available to the holder of a network services license.
A ‘License for Economic and Political DR’ is similar to an OGRA License except that the license holder is not required to start operations in Isle of Man until it desires and hence is not liable to pay any duties until it decides to start operations on the island.
Comprehensive Guide to Company Incorporation
General information
Company structure
- ▪At least two local directors (must be individuals, not corporate entities)
- ▪At least one resident Designated Official (DO)
- ▪Operations Manager (OM) if Designated Official cannot reside in the Isle of Man
- ▪Gambling and trading accounts should be located in a bank in the Isle of Man
Taxation
- ▪Online gambling duty on a sliding scale from 1.5% down to 0.1%
- ▪For pool betting the duty is equal to the UK duty rate (15% at the time of writing)
- ▪Currently no levy is charged on operators
- ▪Corporate tax on gaming companies is 0%
- ▪No capital gains tax or inheritance tax
- ▪Income tax payable per year capped at £120,000 for individuals
- ▪Simple and competitive tax regime with top personal tax rate of 20%
Other benefits
- ▪High credibility
- ▪One license for different kinds of gambling
- ▪A chance to get the Sublicense – small casinos can work under famous gambling brands and obtain the full license in future
- ▪European guaranties and security, firm economic and political environment
- ▪British whitelist
Registered Agent – Required
Registered office – Required
Company name
- ▪Language: English
- ▪Letters: Any
N.B.
- ▪Registrar may reject any name which it considers undesirable or contrary to the public interest.
- ▪Company name is restricted to be identical or similar that of an existing company.
- ▪In case when foreign language is used for company name the translation must be provided to Registrar which will ensure conformity to above listed restrictions.
In order to obtain a license, the following steps will be carried out:
- ▪Assistance in company formation (if necessary)
- ▪Assistance in bank account opening (if necessary)
- ▪Data Processing for License application with the Regulator
- ▪Preparation of the application (if necessary assistance with notarization and apostilling of the documents)
- ▪Submission of the application and documents to the Registry
- ▪Assisting in post- application process
N.B.
Just before the license is approved, a hearing is conducted where all key officials, operations manager and on island directors have to attend.
In order to obtain license, Offshorelicense will fill all necessary application forms and also acquire apostilled corporate documents.
For that reason, please provide us with the following documents.
- ▪Certificate of no criminal record of the owners of the company (not older than 3 months)
- ▪A notarized copy of valid passport
- ▪A notarized copy of Letter of Reference form Bank of the owners (not older than 3 months)
- ▪A copy of proof of residential address (ex. utility bill that is not older than 3 months)
- ▪Detailed description of the games offered
- ▪Detailed business plan
- ▪Details about the software utilized and TST (or similar) report if available
- ▪Geographic/target market
- ▪Declaration of owners that they have blocked access to the services for minors and information of problem gambling in the website
- ▪Servers need to be collocated in the Isle of Man
- ▪A list of key officials in the group where the application is from a publicly listed company
A simplified personal declaration form (SPDF) for any of the following appointments:
- ▪All other shareholders of the applicant company, ultimate parent company and any companies in between and other stakeholders
- ▪Money Laundering Reporting Officers
- ▪Senior managers
N.B.
- ▪If documents are not in English language or language of particular country, then they must be accompanied by a notarized translation.
- ▪The company may have to submit additional documentation requested by the local authority.