Certain countries allow for the registration of shipping companies that can operate without any local income tax liability. Furthermore, such countries try to offer competitive terms as far as ship registration, overseas maritime services and general ship-management matters are concerned. Apart from tax advantages, shipping companies are concerned with issues such as labour regulations and manning scales.

Ownership, registration, administration and operation of ships are four different types of activities, and are often situated in two or more different jurisdictions in order to achieve an optimum result. Thus, an owner in a high-tax, non-maritime country might register his ships in a low-tax jurisdiction and operate them from there.

It is common to incorporate a company in a low-tax jurisdiction for each ship, in order to provide insulation in the event of financial problems. Cyprus and Malta offer very advantageous tax regimes for shipping and ship-management operations. Companies conducting this kind of operations in these countries may qualify for full tax exemption over their income and may only have to pay a relatively mild tonnage tax in relation to their activities.

Consulco has gained significant experience in servicing many (large and mid-sized) clients in the field of shipping and ship-management. Consulco has unique expertise in the rendering of fiscal-, corporate advisory-, accounting- and audit services to companies active in this field and its people are more than happy to share their knowledge with and for the benefit of businesses interested in the use of Cypriot or Maltese companies for shipping- and/or ship-management operations.