Other Equity Markets for Shipping

Abstract

The Norwegian Market proves to be an attractive source of equity for the international shipping industry, mobilizing substantial amounts of equity. The most common Norwegian private equity investment structures are: Limited partnership (Kommandittselskap, “KS”), Silent partnership (Indre selskap, “IS”), Limited liability company (Aksjeselskaper, “AS”), General partnership (Anvarlig selskap, “ANS”). Recently the Silent partnerships, generally known as ISs, have become the most popular investment vehicle replacing the formerly widely used KSs as ISs are very flexible and tax efficient. A Norwegian Silent partnership is not liable to pay taxes. The silent partners are taxable to their relevant share of a calculated taxable income/loss and net worth according to the tax rules of their domicile. This makes the silent partnership structure attractive for non-Norwegian investors as they are not taxed in Norway whereas Norwegian investors are taxed according to ordinary Norwegian taxation.