Hybrid Companies

Hybrid companies combine two standard types of limited company: a company having a share capital and a company limited by guarantee. That means that in the event of insolvency or liquidation of the company, the members of the company limited by guarantee will undertake the obligation to contribute capital to the company while the members of the company having a share capital contribute capital to become a shareholder.

A reason of significant importance for choosing to establish a Hybrid Company instead of a Private Limited Company is that economic interest can be separate from control by using the proper structure. Hence the strict CFC (Costs of Facilities capitals) rules for certain residence of certain countries can be avoided. A Hybrid Company offers flowing mechanisms of tax planning which are related to the jurisdictions that the entity is based.