Hybrid Companies

Whilst not strictly a new development we include this topic as we are finding that there is a renewal of interest in this form of structure.

A hybrid company, a company limited by guarantee but which also has a share capital, is a potential alternative offshore structure to a discretionary or personal interest settlement. It is possible, under the hybrid structure, to separate the legal ownership of the assets from the beneficial interest in them.

The main use envisaged for such an entity is as a quasi trust.

By forming the hybrid with shareholders as professional administrators and non-shareholding members as the beneficial owners, the distinction between legal and beneficial ownership emerges. A hybrid can, therefore, be used where trust as is too restrictive - for example: