Registration under the flag of yachts and merchant fleet
Registration under the flag is one of the most important issues faced by the owner of a ship or yacht. Our company offers a full range of legal and consulting services in this area. We will provide professional legal assistance with the registration of a yacht or vessel under both the Ukrainian flag and the convenient flag of a foreign country.
Registration of yachts (vessels) under the flag of Ukraine
Vessel registration in the State Shipping Register of Ukraine depends on the type of vessel, the power of the main engine and the gross capacity of the vessel.
For those who value their time and nerves, we offer our services:
- registration period up to 2 weeks;
- checking the legality of the registration history;
- deregistration of the vessel in the State Shipping Register of Ukraine;
- passing the annual technical inspection of the vessel;
- authorization of controversial situations.
Registration under a convenient flag
Advantages of registration under the flag of certain states:
1. Marshall Islands
The advantage of the Marshall Islands for the registration of yachts and marine vessels is that the islands have membership in the United Nations and partnerships with all major maritime powers. Vessels registered in the Marshall Islands enjoy the most-favored regime when entering the territorial waters of the EU and the USA. This jurisdiction provides its clients with a high level of service and confidentiality, extremely favorable tax conditions, fast preparation and legalization of documents necessary for servicing companies that own ships, as well as a wide list of vessels allowed for registration: yachts, passenger ships, sea tugs, fishing vessels , tank and cargo containers.
Vessels less than 20 years of age are permitted to be registered in the Marshall Islands, unless they have been proven fit and in satisfactory condition during the assessment. The owner of a vessel registered in this jurisdiction can be a resident of the islands or a company registered under local law (ideally – an offshore company such as an IBC that does not pay tax on profits and dividends).
International Registries, Inc. and subsidiaries (IRI) provide administrative and nbsp; technical assistance to the maritime registry and registry of commercial organizations of the Republic of the Marshall Islands. IRI administers maritime and economic programs and has been involved in flag state management since 1948. IRI – a network of 27 representative offices in maritime and financial centers around the world, with the headquarters in Washington, DC/Reston.
The Republic of the Marshall Islands allows, in accordance with current legislation and the Marshall Islands Yacht Code, the registration of private yachts, fixed-term charter yachts, commercial yachts and passenger yachts. Marshall Islands-flagged yachts are eligible for charter in the waters of France and Monaco without the need for commercial registration with a request for a temporary certificate of registration for a yacht used for commercial purposes.
Yacht owners can choose a home port in either Bikini or Jaluit. Yachts can have a common name if they are registered in different home ports.
2. Cook Islands
This state is a member of the Royal Yacht Club and is considered the best country for registering yachts (vessels), as it has an "open registry" that registers yachts (vessels) regardless of the nationality of their owner.
Advantages of this registry:
- moderate registration fee;
- absentof taxes during the sale of yachts (ships);
- absence of duty on profits from foreign maritime commercial activities;
- no restrictions on the ownership or age of yachts (vessels), which can be registered by any person regardless of citizenship or place of residence;
- confidentiality of private information about ship owner;
- registration and issuance of documents is carried out within 1-2 days;
- a registration program for three-year and five-year periods has been developed.
- no need to provide a Surveyor's Certificate on the technical condition of the yacht (Certificate of Survey).
3. O. Jersey
Registration under the flag in this region has a number of advantages. First – membership in the Red Ensign Group – The British Maritime Registers Group, which includes the UK Register, British Crown Lands and British Overseas Territories registers. A vessel registered under the flag of the island of Jersey acquires the status of a "British vessel". and the right to sail under the British merchant flag.
Unlike the member countries of the British Commonwealth, which offer the "British flag" purely as a matter of historical and cultural heritage, the Isle of Jersey entitles a vessel registered on its register to the protection of the British Flag. For example, while abroad, the owner of a yacht has the right to turn to the British Consulate at any time for support and assistance in case of any difficulties.
Secondly, Fr. Jersey is whitelisted by the Organization for Economic Co-operation and Development (OECD) as a transparent and well-regulated offshore centre.
Thirdly, if the owner of the yacht is a non-resident of the European Union, there is no obligation to pay VAT, the rate of which in the EU is 25%, during entry into the EU customs territory and registration of the temporary import regime.
Fourthly, the Register of Fr. Jersey offers both temporary registration (valid for 3 months) and permanent registration valid for 10 years. With permanent registration there is no need to pay any annual fees and charges to maintain the yacht's status on the Jersey Register. The next payment, equal to the price of the initial registration, will need to be entered into the Register only after the 10-year period.
What's convenient in Jersey – this is a temporary registration option. We emphasize what exactly is "possibility". Unlike, for example, Panama, where yacht registration goes through two mandatory stages of temporary and only then permanent registration, in Jersey "temporary registration" - This is an additional service. In practice, in order to obtain a temporary Certificate of Registration, it is necessary to provide the Registry with a minimum of information and pay quite adequate money. Within 1 working week, you will be able to get a temporary and maximally "convenient" flag. The temporary registration can be extended for the same 3-month period or the registration of permanent documents can be initiated.
4. Panama
The Republic of Panama has the largest court registry in the world. Panama – one of the most active members of the International Maritime Organization (IMO). This country boasts the Colona Free Trade Zone, which is known around the world as a center for tax-free wholesale transactions. Right here, in Panama, is the Panama Canal, an important commercial and transport artery of the entire planet. Panama's economy is aimed at supporting international shipping. Panama – one of the leading offshore jurisdictions in the world and a major financial center. The legislation of the country guarantees the strictest observance of banking and financial secrecy.
- Panama is on the "white" list according to the international maritime organizations Paris MOU and Tokyo MOU;
- an open register, which means that any natural or legal person can be the owner of a yacht (vessel);
- There are no restrictions on the age and tonnage of the registered yacht (vessel);
- there are no requirements for the classification and certification of recreational vessels, i.e. providing a certificate from one of the classification societies and carrying out surveyor inspections is not necessary;
- Zero taxation in case of profit from the use of a yacht (vessel);
- Zero taxation in case of sale of a yacht (vessel);
- When using the nominal services of the company, a high level of confidentiality is guaranteed;
- Political and economic stability;
- Radio license and navigation license are issued for a period of 2 years.
5. Gibraltar
Since Gibraltar is an overseas territory of Great Britain, yachts (vessels) registered on the peninsulathey can walk under the flag of this country. Using various schemes, a yacht (vessel) can be registered by citizens of any country, it can be registered both for a private person and for a company. When registering a Gibraltar company, owners have a number of advantages:
- Possibility of registration under the flag of Great Britain or Gibraltar
- Compared to other European countries – liberal tax legislation
- When registering a yacht (vessel), its owner can legally avoid paying VAT
- Absence of import duty during registration
- No income tax when selling a yacht (vessel)
- No property tax
- When handing over the yacht (vessel), the charter – no income tax
- Shareholders and directors of the company do not have to be residents of Gibraltar
- A yacht (vessel) does not have to undergo an annual registration
- If the displacement of the yacht (vessel) does not exceed 80 tons, the captain does not have to have any certificate confirming his qualifications
- Privacy for the real owners of the yacht (vessel)
- The sale of a yacht (vessel) can be carried out through the sale of company shares
- The home port can be any port in Great Britain
- Gibraltar – one of the cheapest yacht parking in Europe
- Established mechanism for company and yacht (vessel) registration
Vessels of all sizes and types can be registered in Gibraltar, with the exception of fishing vessels and nuclear powered ships. Membership in the European Union and a special tax regime make the country attractive for ship owners. The vessel, registered in Gibraltar, will fly the British flag and enjoy the cabotage privileges of the EEC.
6. Belize
Registering a ship under the flag of Belize allows you to take advantage of the following advantages:
— no restrictions on the class, type and size of the registered vessel;
— availability of double registration, temporary and permanent;
— no requirement for the presence of a local team;
— absence of a requirement to provide a tonnage certificate during the registration of the yacht itself;
— simplified registration process;
— relatively low cost of registration and annual fee;
— high standards of maritime safety (Belize has a number of international agreements).
In Belize, both a resident and a non-resident company can act as a ship owner.
7. Virgin Islands
The British Virgin Islands is rightfully considered one of the world leaders not only in terms of the number of offshore company registrations, but also in the number of yachts and vessels sailing under the BVI flag. Every year, the number of yachts and vessels flying the Red English Ensign, provided by the British Virgin Islands, continues to increase. This is due to the following factors:
- The British Virgin Islands are under the sovereignty of Great Britain, which provides the BVI with economic and political stability;
- Yachts (vessels) registered under the BVI flag belong to the British Merchant Navy. This means that they automatically receive the diplomatic and consular protection of Great Britain, as well as the support of the Royal Navy;
- Zero taxation in case of profit from the use of a yacht (vessel);
- Zero taxation in case of sale of a yacht (vessel);
- When using the nominal service in the company, a high degree of confidentiality and much more is guaranteed.
8. Cayman Islands
Registering a vessel in the Cayman Islands gives you the following benefits:
- Membership in the Red Ensign Group – The British Maritime Registers Group, which includes the UK Register, British Crown Lands and British Overseas Territories registers. A ship registered under the flag of the Cayman Islands acquires the status of a "British ship"; and the right to sail under the British merchant flag.
- The possibility of registering a vessel of any size and characteristics.
- Convenient and relatively low-cost maintenance of the maritime registry, as its offices are located in Great Britain, the USA, Greece, Monaco, Italy, Japan, Hong Kong and Singapore.
9. Liberia
More than 1,600 ships ply the world ocean under the flag of Liberia. more than under the flag of any other country. This is explained as follows:
- the cheapness of customs duties for the use of the flag introduced in this African country;
- registration of a vessel chartered under a bareboat charter contract.
10. Canary Islands
Maritime Register of the Canary Islands – The 2nd register of Spain, operating under the flag of the European Union, has the following advantages:
- no restrictions on the ownership and maintenance of the vessel,
- 90% exemption from company income tax
- registration of any commercial, passenger ships with a displacement of more than 100 tons.
Contact us for detailed information and an offer. The "Marine voyage" company, having extensive experience in this field, will help you not only to make the right choice, but also to process the entire package of documents quickly and professionally!
