Isle of Man Partnerships and Limited Liability Companies (LLCs)

The Isle of Man offers three partnership options: a General Partnership (GP); a Limited Partnership (LP); and a Limited Liability Company (LLC). For a discussion on the different types of partnerships and their strengths and weaknesses see our main page on partnerships and LLCs in the products section.

Limited Partnerships (LPs)
Isle of Man Limited Partnerships may have between two and twenty members and must be incorporated to benefit from limited liability protection. If they are not incorporated they will be treated as general partnerships and all partners will be jointly and severally liable (for a discussion on the different types of partnership see our main page on partnerships and LLCs in the products section). Of these members at least one must be a general partner who does not benefit from limited liability, as do the limited partners. Isle of Man Limited Partnerships are not subject to tax in the Isle of Man (which in any case is 0%) and the taxable benefit is deemed to arise on the members directly. The timescale for formation is about the same as for companies (around one week if everything is in order). The information to be provided on formation includes the proposed names of the LP, the address in the Isle of Man (though local providers offer use of their address), the names of each partners and who is general partners, the length of time (if restricted) for which the company may trade.  Accounts must be filed but are not public record and subject to the threshold requirements for Isle of Man private companies these do not need to be audited. Isle of Man LPs may also be VAT registered, for more information on VAT registration in the Isle of Man see our main article on Isle of Man Private Companies.

Limited Liability Companies (LLCs)
The Isle of Man also allows for the incorporation of LLCs which are like companies but with slightly fewer formalityies and which are taxed like a partnership.

General Partnerships
Isle of Man general partnerships are unlikely to be relevant in an international context except if an Isle of Man limited partnership (see above) were to fail to be properly registered. For a discussion on the different types of partnerships and their strengths and weaknesses see our main page on partnerships and LLCs in the products section.