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  Isle of Man Vehicles are a Popular Choice for AIM listing
Indian companies are turning their attention to the Isle of Man (IOM) as they find the jurisdiction a suitable place to set up subsidiaries to carry out global buyouts.
In 2006 merger and acquisition deals involving Indian firms were valued at $30 billion, of these $5 billion were domestic, $15 billion were cross over deals and $10 billion were outbound.
Companies have also started using the Isle of Man to get listed on the Alternative Investment Market (AIM). Out of the 18 India-related entities on AIM nine can be traced back to the IOM.
ILS is currently working on a few potential AIM listings and would be delighted to help clients with any such plans.
Over 250 companies incorporated outside the UK are quoted on AIM, which, as the world’s most successful growth market, enables international businesses to tap into the capital liquidity and profile of the London capital markets. It is an ideal environment for international companies looking to use a public market to fund further expansion and raise global profiles.
In 2005 there were 519 admissions to AIM, which included 335 initial public offerings (IPOs), of which 76 were international. The total raised was £8.9 billion and the market value of overseas companies on AIM has leapt by 181.6 per cent in the last 12 months alone.
AIM advantages include:
- Quick and cost-effective
- A quotation on one of the world’s most liquid capital markets for trading in shares of small and growing international companies
- Higher profile among London’s investment analysts specialising in sectors and regions worldwide
- International promotion of the company’s image and brand
- A flexible and responsive system of regulation
Why the Isle of Man?
- It has a high quality and stable political, legal, fiscal and regulatory environment.
- Closed-ended investment companies are not classed as funds under IOM law and are not subject to the IOM funds regulatory regime.
- The quality of the Island’s professional infrastructure as local lawyers, accountants, administrators and banks have the expertise and experience to deal with AIM listings.
- The IOM Companies Act 2006 has introduced a new simplified corporate vehicle with far more flexibility of capital restructuring and returning capital to its members. The general rate of corporate income tax is zero per cent.
- The provision of company administration services is a regulated activity in the Isle of Man. All Corporate Service Providers must be licensed by the IOM Financial Supervision Commission.
- With a common law legal system, the IOM has very similar laws to those in England.
- It is only an hour long flight from London and is in the same time zone.
The Isle of Man will continue to be an attractive proposition for businesses wishing to benefit from the advantages of AIM due to its zero rate tax, new company legislation and quality professional infrastructure.
For further information on AIM listings please contact Stephen Colderwood.
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