Other Users
Large Companies
Other major corporate users of IFSC's are multinational companies.
For many years, multinational companies have used centres to establish companies for their international business activities. The main areas that these companies utilise International Financial Services Centres are shown here:
- Establishing holding companies
- Structuring foreign direct investment
- Owning intellectual property rights
- Setting up headquarters companies
- Establishing physical operations
- Capital raising exercises
- Obtaining stock market listings
- Managing treasury operations
- As domiciles for captive insurance companies
Specialist Corporate Users
Examples of Specialist Corporate Users include shipping and aviation companies. Since the 1920s, shipping companies have been using offshore shipping centres for ship ownership, registration and management. Open registries, are one of the oldest features of this industry. There are three types of open register:
- Independent Registers
- Dependency Registers
- Offshore Register
An "independent register" is one run by sovereign states. The Panamanian Register is an example of an independent register and since the 1920s, Panama has been one of the most popular locations for the registration of US owned vessels.
Liberia is another well-known independent register since the establishment of its registry in 1949.
The Cayman Islands and other British ports of registry are examples of dependency registries as their basic law and standards are based on those of the United Kingdom.
Countries that wish to provide a special register offering a more liberal operating environment establish offshore registers, such as the Norwegian International Register.
Over the last decade, there has been a dramatic recovery in the worldwide shipping industry and several offshore centres have been offering attractive incentives to secure this lucrative business.
There is an active offshore market for offshore aircraft registration. The most active centres include Aruba and the Seychelles.
Owner-Managed Businesses
Much of what has been said about multinational users of international financial services centres applies equally to owner-managed businesses. The profiles of these users incorporate every aspect of international business, including manufacturing, distribution and the service industries.
As owner-managed businesses become increasingly involved with international business, they are responsible for the establishment of a growing number of offshore structures, in both treaty and non-treaty jurisdictions.
This trend will continue and owner-managed businesses will continue to account for the majority of new offshore structures.