Other Entities

Limited Partnerships, Partnerships and Sole Proprietorships

Ordinary partnerships (and sole proprietorships) may be formed whereby all partners are (or the sole owner is) liable without limit for the debts of the partnership (or business) not satisfied by the partnership (or business) assets. There is a trend away from this for professional firms in the Island.

Limited partnerships may also be formed. A limited partnership consists of at least one general partner whose liabilities for the debts is unlimited and other, limited, partners whose liability is limited to their agreed capital contribution.

Limited Liability Company

The limited liability company has a corporate personality distinct from that of its members, but its articles of organisation may provide that it shall have much of the flexibility of a partnership.

The liability of its members, as such, is limited to the extent of their agreed contribution. In many respects it can operate as an incorporated partnership.

Trusts

Trusts have a centuries-long history in the Isle of Man. The law in this area embodies the main principles of English trust law supplemented or varied by legislation. It is most unusual for a trust to engage directly in business; however, a company engaged in business may be owned by a trust. A purpose trust may be used for asset-holding activities.

Business Registration

A business (other than an individual or a company carrying on business in the individual’s or the company’s name, as the case may be) carrying on business in the Island must register its business name.