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National Energy Transportation S.A.

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National Energy Transportation SA is incorporated in the Marshall Islands. A Marshal Islands company and its business must be domiciled in a friendly jurisdiction in order to operate and conduct its activities. The traditional maritime centers are Cyprus, Hong Kong, Singapore, Greece, Switzerland and Vancouver.

Greece is an ideal domiciliation choice and one of the least expensive jurisdictions that the law allows free movement of capital and the market has emerged experienced personnel available to conduct this type of business. For this particular reason the Greek Government as adopted Article 25 of Law 27/1975, as replaced by article 28 of Law 814/78, permits the establishment in Greece of the offices or branch offices of foreign shipping companies of any type or form, provided they engage in the following activities:

  • Ship Management
  • Ship Operation
  • Chartering
  • Insurance
  • Average adjustment.
  • Brokerage services (sales and purchases, ship-building, freight and insurance) involving vessels of over 500 GRT under Greek or foreign flag (with the exception of coastline passenger vessels).
  • Representation of companies engaging in the above activities.

The aforementioned shipping companies are also subject to the provisions of Law 89/1967 and Law 378/1968 as well as of articles 30 and 37 of Law 814/78.

Facilities and Tax Exemptions

  • Foreign companies owning vessels under foreign flag, managed or operated by a Greek or foreign company, as well as the Greek offices or Greek branch offices of foreign companies, are exempt from paying taxes, duties, levies or withholding taxes to the Greek State on the income earned from the activities or services listed above.
  • The same exemption also applies to the shareholders or partners, with regard to dividend income or the distribution of profits, whether directly or through portfolio investment companies.
  • Foreign personnel of such companies is granted work permits for a period up to two years, which may subsequently be renewed upon expiry of each, such as a two-year period.

The following are required in order for foreign shipping companies to qualify for the exemptions and facilities:

  • A permit has to be granted by joint decision from the Ministers of National Economy, of Finance and from Merchant Marine, which is valid for five years commencing as of the date of its publication in the Government Gazette.
  • The import of the amount of USD 10,000 in foreign exchange, which does not have to be deposited with the Bank of Greece, to cover the operating expenses of the office of the Branch in Greece.
  • The import in Greece of foreign exchange (which does not have to be deposited with the Bank of Greece) for payments on behalf of the said companies or on behalf of third parties.
  • The deposit of a guarantee of at least USD 10,000 in favour of the Greek State, to secure compliance on behalf of the Greek Branch with the terms of the Permit for establishment of the Branch in Greece.