A little island in the Irish Sea is becoming a popular tax haven for a growing number of Indian companies taking part in international mergers and acquisitions.
Companies are being drawn to the Isle of Man as a place to set up subsidiaries to carry out global buyouts.
The Isle of Man, known for its flexible corporate laws, offers tax benefits such as no corporation tax.
Law firms on the Isle are also benefiting, according to a report in the Business Standard.
“In M&A deals, companies’ needs are sometimes specific. Companies are allowed a great deal of tailoring to the particular requirements of the proposed transaction,” said Mike Edwards, of Cains law firm in Douglas. Legal firms on the Isle of Man are also advising several private equity funds planning to invest in India, Edwards said.
The island is also proving to be a convenient stepping-stone to listing on London’s Alternative Investment Market (AIM), which is linked to the London Stock Exchange. Out of 18 India-related entities on the AIM, which have mopped up a combined US$3.9 billion, nine can be traced to the Isle of Man.
