Many companies utilize low tax companies for the employment of staff working on overseas assignments. This may provide for tax- and social security benefits for the these employees.

Low tax companies can also be a useful tool for employee profit participation schemes. For high executives or other personnel, low tax companies can be set up for the ownership of shares and/or options of shares in companies with which these employees are employed. In that way, income upon the shares and/or options can be realised with low or no taxation payable, although it should of course in every specific case be investigated whether the State of Residence of the employees will not deem the employees in question to receive such income individually, in the form of employment income, yet leading to (high) taxation over the income in question.

Suitable jurisdictions for the establishment of employment companies are Cyprus and Malta.