PHARAOHS MARINE CONSULTANTS
Trading company:
Most non-resident companies operating in the international market are trading companies. The definition of “trade” does not necessarily restrict the company to buying and selling goods. In the event that a customer is engaged in production, carries goods, organizes tours or gives advice, he is engaged in commercial activities in the broad sense of the term and his company will have the status of a trading company.
Holding company:
A holding company is an entity that owns shares in other businesses, cash or other assets such as patents, trademarks or copyrights. A holding company does not carry out direct production or commercial activities independently.
Insurance companies:
Frequently large entrepreneurs encounter the following difficulties in obtaining insurance:
- insurance against all general, property and personal risks with third-party insurance companies entails significant premiums;
- in the event that the entrepreneur saves on insurance premiums and establishes his own reserve instead, frequently this does not qualify for tax relief.
Accordingly, it may be more advantageous for a large business to establish a wholly owned insurance subsidiary that may accumulate the premiums paid in its accounts as a reserve should insured events occur. Frequently, a certain period of time elapses between the receipt of premiums and the payment of insurance claims during which the insurance subsidiary accumulates a considerable amount of working capital that may be used, inter alia, for low-interest financing of the core business.
Trust companies:
A trust provides for the transfer of assets by one person known as the settlor to another person known as the trustee, where the trustee is guided by the trust agreement in his actions regarding the assets. Generally, income from the asset management is intended to be paid out to third parties known as the beneficiaries.
The concept of the trust dates back to the English legislation of the middle ages. In the cases where the wealthy English began thinking about the distribution of their assets such as factories or banks among their heirs and came to the conclusion that the heirs would not be able to cope with the management of the empire they had built, the wealthy English entrusted their assets to trusts managed by their friends who were professional financiers. It was nevertheless stipulated that the income from the trust fund would be distributed among the heirs.
Nowadays, these traditions have acquired much more varied forms. An international trust is now relatively popular. This is an agreement between non-residents of the country where the trust is established in respect of non-resident assets and in favor of beneficiaries who are non-residents of such a country. Frequently, international trusts established in offshore centers are liable to reduced or zero taxation.
Shipping companies:
Shipping companies are incorporated for the purpose of operating as a ship owner or ship operator, it helps protect ship-owner other vessels or assets from damage might arise from claims on his ship(s)