Yacht registration is one of the best options for foreign nationals to get started with an offshore business. Buying a yacht can be a crucial international investment. Also, you must be aware of the best jurisdictions that'll give you the best returns on your investment. Deciding a suitable country for offshore yacht registration is a decision that requires professional advice to avoid unnecessary taxes and liabilities.
As with other offshore strategies, the country where you register your yacht can have an immense effect on your investments, as well as your financial freedom, once, you have decided a jurisdiction; the next step is to know more about the different options associated with yacht registration. In this article, we will focus on different types of yacht registration and also various other aspects regarding the offshore yacht.
Types of Yacht Registration
There are basically three types of yacht registration for individuals and business owners. The following are the types of yacht registration:
In this type of yacht registration, the vessel is registered under territorial registries. There are many countries that offer this type of yacht registration. However, these registries have strict regulations and criteria for ownership. It is limited to only citizens and companies that are incorporated in the registered country.
An open registry is a service that serves the international shipping community. Unlike territorial registries, they are open to being registered in other countries. Most of the countries have open registries that can help you with yacht registration. However, there are challenges such as higher tax rates and requirements that can prove to be difficult for many individuals and companies. As a result, investors and business owners prefer Offshore Registries over any other registries.
Offshore or International Registries
International Registries or better known as offshore registries are set up by the traditional registries. It helps in stemming out vessels from their original registries to an offshore jurisdiction that can offer various advantages. These are specifically designed to reduce the operational costs and attract foreigners to invest in the offshore jurisdiction.
Benefits of Offshore Yacht Registration
The benefits of yacht registration depend on the jurisdiction in which the vessel is registered. However, there are some primary advantages that most of the top jurisdictions offer as a part of their offshore policies. The following are some of the general advantages of offshore yacht registration:
- Yacht protection and assistance
- Favorable tax regimes and legal environment
- Lower VAT rates
- Limited personal liabilities and risks offshore company formation
- Low registration costs
- Flexible crew requirements
- Registration of an offshore yacht can be done anonymously
What is the best jurisdiction to register for a Yacht?
It is difficult to determine whether a jurisdiction is better than others. There are several top jurisdictions such as BVI, Cyprus, Panama, Hong Kong, Mauritius, and St Lucia. Each jurisdiction provides various advantages and limitations. The offshore country comes with its own unique set of benefits for the offshore yacht and its ownership. It depends on you to decide which jurisdiction is more suitable according to your business requirements.
Some jurisdictions do provide additional benefits. The British Virgin Islands provides additional benefits that may be helpful for your business at specific periods. While offshore company formation in BVI will bring you various advantages of the registration as the country is a member of the Commonwealth. Also, the vessels in the jurisdiction are entitled to the support of the Royal Naval protection and the British Consular.
How to register an offshore yacht?
The following is the step-by-step procedure to register an offshore yacht:
Survey of the Yacht
Before the registration process, the yacht should be surveyed and measured accordingly to obtain details such as the size shape and other specific particulars required for the registration. It is important to note that the surveyor should be registered or authorized by a registry. Also, a simplified survey procedure can be applied to the vessel, given that it is 24 meters in length. There may be additional requirements for the registration of commercial vessels.
The first step would involve preparing and filing the application, along with the required documents. Upon submission, you would have to provide the name of the yacht. Once the name gets approved, the next step would be to provide the other supporting documents related to yacht specifications.
Once the formalities are done, you will receive an official registration number. The next step is to make the payment which includes all government fees. After making the payment, the registration process will be taken further to the registry. Also, in this process, you will have to include a license regarding the radio equipment of the ship.
Offshore yacht registration can be a confusing concept for people who are unaware of the process. It is thereby necessary to avail services from professional experts to make the entire registration process hassle-free. You can contact us today to learn more about our yacht services.