Registration is the main test of a vessel’s nationality and is her licence to sail freely from country to country. Due to complex international regulations careful consideration should be given to the most suitable Port of Registry.
The TCS Group has the relevant experience and knowledge enabling us to arrange for the most appropriate registration, in various jurisdictions, for a variety of yachts. We work with the client to determine the most appropriate flag state for their requirements, based on reputation, efficiency, flexibility, lender and charterer preference, as well as Port State Control administration. We can also advise and assist with Yacht insurance; Finance; Administration; Crew Employment and Payroll.
Some advantages of corporate ownership:-
With a company as owner of the vessel, your name will not appear on any documents. We can recommend specific jurisdictions, depending on your domicile, residence and tax position.
Avoidance of Transfer Taxes
Selling your vessel is simply a matter of transferring the shareholding of the company to the new owner, avoiding unnecessary transfer taxes, and no changes necessary to the certificates of ownership.
Avoidance of Inheritance tax
Careful corporate structuring can enable you to avoid costly inheritance tax issues.
Having the assets of your company transferred to a discretionary trust can give inheritance tax benefits, asset protection advantages, as well as providing continuity in accordance with the wishes of the settlor.
Ease of Registration
To register under the British Red Ensign, if you are not an EU citizen, the use of an EU company can give you all the same benefits.
Ease of Sale
Transferring the vessel on sale by a transfer of the shares in the Company avoids expensive and protracted procedures which are necessary to change the ownership of the vessel at the ship’s registry and therefore corporate ownership allows the sale to be effected much more cost effectively and quickly.
Use of a tax exempt company in a favourable jurisdiction to provide charter services, should allowing chartering income to be free of any local taxes.
Should an errant Master cause damage to another vessel or personal injury to a third party, having the boat registered in the name of a Company whose sole asset is the boat, will normally limit any claim.
Our experienced staff will be pleased to provide further information on request.
TCS Group on Linkedin
TCS Group on Twitter
TCS Group on Facebook