REGISTRATION
COMMONWEALTH OF DOMINICA CONSULATE GREECE Commonwealth of Dominica Consulate Greece is proud to offer yacht owners commercial and private, the opportunity to join an international yacht registry. No tonnage tax and no size restrictions are some of the privileges. The length of registration periods can be customised and special registration offers exist for three or five years registrations. Registering a vessel under the Commonwealth of Dominica is efficient, straightforward and cost effective. The Dominica Consulate in Athens, established since 2010, provides guidance and assistance to the local and the international yacht community with regards to vessel registration, mortgage recordation, forming Dominica business entities and the renowned Dominica Citizenship by Investment Program. For more details Tel: +30 6932 488888 or visit
www.dominicaconsulategreece.com
At St Kitts & Nevis there is no specific ownership restriction but the registry does checks to make sure yachts/owners are not subject to financial sanctions and are eligible to be owners of a yacht under St Kitts & Nevis. “If the owners are already known to the Flag, or company register, the KYC procedures are not as extensive,” explains Ryan. Madeira does not have any particular restrictions.
Like most registries, the Cayman Islands operates an open registry which, subject to certain fiscal and legal controls, do allow non-domiciled/non-nationals to register vessels.
Says Moore-Gothar, “The majority of reputable registries will only accept registration from foreign entities located in a jurisdiction that operates under equivalent robust fiscal regulations as the country in which the registry is located. This is essential to avoid the potential for money laundering and other possibly unwanted activities associated with the vessel.”
With the Virgin Island registry, “there are nationality requirements for ownership and registration of a Virgin Islands vessel,” says Samuel, although he points out, “there are no domicile requirements. Most common maritime nationalities can own BVI vessels, and those that cannot do so directly can utilise a BVI company structure for ownership.”
WOOPS! So, how easy is it to get it wrong? How often do yacht owners sign up to a registry and realise it does not offer the services they were hoping for? Liam Ryan at St Kitts & Nevis wouldn’t say owners make ‘mistakes’ exactly but; “Yachts are significantly different to commercial ships so there can be a gap between a yacht owner’s knowledge and flag requirements. In situations like this, we would guide the owner where required and assist with compliance matters.”
Mistakes are definitely made when it comes to flag state choices suggests Chays. Which is why an owner should pick his lawyers/ shipping agents wisely, those who have his interests at heart over and above their own..
Schoolboy errors include: choosing a flag in order to obtain quick or low-cost registration to the detriment of safety and reputation; choosing a flag because someone else they know chose it without having taken into consideration what other registries can offer; not contacting a flag because they presume
that they would not be eligible for; choosing a flag because they like the flag colours!
Raffray adds that owners need to check if the yacht is suitable for commercial use (if they want to charter) and often buy yachts without considering what the nationality and/or crew qualification requirements are. He says, “Unaware of the rules for registering the vessel and employing the crew, they unknowingly opt for open flags on the grounds of administrative ease and lower crew costs. This often results in prohibitive management costs, administrative procedures and often a lack of social security cover for crews. This can lead to costly transactions in the event of conflicts between the shipowner and the seafarer(s).”He adds, “A poor definition of the vessel’s activity before the project is launched can also have a significant financial impact on the construction of the vessel.”
John Samuel adds, “Registration or entry fees should also be examined as some fee structures are layered and not readily transparent. Hidden fees can become an issue later in the process.” Ramos frequently witnesses poorly advised yacht owners: “We often notice owners getting into legal or other types of problem because they’ve been poorly advised about registration with a ‘classic’ i.e. anglo-saxon or off-shore registry.”
It’s never wise to consider cost alone without considering quality of service and support warns Toby Brooks at the Isle of Man Ship Registry.
ON OR OFF? According to Moore-Gothar at the Cayman Registry, there are no real fiscal benefits of choosing a Flag today, so onshore vs offshore is not a major factor to consider.
But Brooks suggests that the difference between on and offshore registries are favourable tax regimes. Raffray adds, “Offshore registries allow for some dual use of the vessel (private and/or commercial), which in some cases allows sailing in waters where
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