BVI Yacht Registration

• BVI yacht registration, a vital step for yacht owners seeking luxury and leisure, particularly those with high net worth or representing multinational corporations. Understanding the essentials of this process is crucial, especially in the context of the British Virgin Islands. Establishing a BVI offshore company can significantly simplify yacht registration procedures. The British Virgin Islands is renowned for its appeal in offshore company incorporation, especially within the maritime sector. The British Registry Port oversees the registration process, ensuring compliance with international standards. Tetra Consultants specialize in aiding clients with BVI yacht registration, offering expertise and guidance for a smooth and efficient process. Various services provided by us encompasses:

• Offshore company incorporation

• Register company in BVI

• Corporate bank account opening

• Assigning BVI shipping agent

• Nominee director and shareholder services

• Accounting and tax obligations services

Advantages of BVI Yacht Registration

Access to technical expertise:

• Leveraging membership in the Red Ensign Group, BVI gains access to the technical resources of the UK Maritime and Coastguard Agency, ensuring rigorous survey and certification processes.

Broad ownership eligibility:

• BVI welcomes ownership from various jurisdictions, including citizens of BVI, UK, and EU countries, offering inclusivity and flexibility for yacht owners worldwide.

Cost-effective registration:

• With low initial and annual fees, BVI registration presents an economical option for yacht owners, optimizing financial resources for other aspects of yacht ownership and operation.

Global recognition:

• BVI’s specialized yacht registration ensures worldwide acknowledgment of certificates, facilitating smooth sailing across international waters and ports of call.

Efficient registration services:

• BVI streamlines registration processes for ships, mortgages, and ownership changes, providing a seamless experience for yacht owners, with assurance in documentation and legal compliance.

Comprehensive support services:

• BVI offers a spectrum of corporate, legal, and logistical services, enriching the yachting experience with convenience and reliability in administrative tasks.

Stability and judicial system:

• Political and social stability, coupled with the British judicial system, instill confidence and certainty in legal matters, ensuring a robust framework for yacht ownership and operation.

Yachting infrastructure:

• With modern facilities and services, BVI serves as the Caribbean’s premier yachting destination, offering a vibrant maritime environment for yacht owners and enthusiasts alike.

Can a foreigner proceed for BVI Yacht Registration?

• Yes, foreigners are eligible for BVI Yacht Registration, available through full or provisional registration categories. Requirements mandate ownership by a BVI offshore company, BVI citizen, or qualifying foreign entity. As a member of the Red Ensign Group, BVI provides access to UK Maritime and Coastguard Agency resources, bolstering safety measures.

• Eligibility under the BVI Shipping Act extends to individuals and entities from various jurisdictions, including the citizens and companies registered in the BVI, UK, European Economic Area (EEA) or European Union (EU), and Caribbean Community. Tetra Consultants offer expert assistance, ensuring compliance with BVI regulations for smooth registration processes.

• The yacht’s owner must be either a BVI offshore company registration, a BVI citizen, or a foreign entity that qualifies for registration. Foreign entities are required to meet vessel eligibility criteria, encompassing a range of vessel types, including yachts weighing up to 3000 gross tons, recreational sailboats and yachts up to 400 gross tons, and commercial and cargo vessels up to 150 gross tons.

How much time does it take for BVI Yacht Registration?

• The duration for BVI Yacht Registration varies, generally spanning 1 week. This process entails multiple steps, including documentation submission and approval. Once registered, the validity extends for one year, necessitating yearly renewal. Tetra Consultants offer expert guidance and support throughout the registration process, ensuring efficiency and compliance with BVI regulations for a smooth and timely registration experience.

• Moreover, we specialize in expediting the company registration process in the British Virgin Islands (BVI), ensuring completion within just 1 week. Additionally, our services extend to facilitating the corporate bank account opening, which will be available within 4 weeks following the incorporation of your company.

• With our dedicated assistance, you can efficiently establish your company in the BVI and access essential banking services in a timely manner. Our streamlined approach ensures a smooth and hassle-free experience, allowing you to focus on your business goals with confidence.

• Thus, aggregate duration will come up to 6 weeks which will include 5 weeks of company registration and bank account opening for your Yacht Registration.

Types of BVI yacht registration

• The British Virgin Islands (BVI) offer two categories of yacht registration:

Full Registration

• Full Registration in the British Virgin Islands (BVI) permits a yacht to fly the BVI flag and constitutes a permanent registration. To proceed with Full Registration, the yacht owner must either establish a BVI offshore company, be a BVI citizen, or qualify as a foreign entity eligible for registration. The registration procedure encompasses engaging a BVI shipping agent, submitting necessary documentation, securing approval for the yacht’s name, obtaining an official number, and fulfilling the registration fee.

Provisional Registration

• Provisional Registration in the BVI offers a temporary validity of 90 days and provides an avenue for eventual upgrade to Full Registration upon submission of required documentation. Ideal for individuals requiring immediate use of the yacht while awaiting Full Registration approval, or for those seeking short-term usage, this option offers flexibility. Provisional Registration serves as a convenient interim solution, allowing yacht owners to navigate the waters while finalizing the registration process for long-term compliance and usage.

Different types of yacht allowed in BVI

Different types of Yacht Registration allowed under BVI Shipping Act are as follows:

• Luxury yacht

• Motor yachts

• Sailing yachts

• Charter yachts

• Custom yachts

• Cruising yachts

• Explorer yachts

• Liveaboard yachts

• Day charter yachts

• Commercial yachts

• Sports fishing yachts

How to proceed for BVI yacht registration?

Step 1: Company registration

• While you proceed to register yacht in BVI you will be required to register company in BVI. A business entity eligible for BVI yacht registration includes a BVI offshore company registration, a BVI citizen, or a foreign entity that qualifies for registration under the BVI Shipping Act. Tetra Consultants provide offshore company incorporation services through which you can have a seamless journey of registering an offshore company in BVI.

• Various statutory requirements includes:

• A minimum of 1 director without residency requirements.

• A minimum of 1 shareholder without residency requirements.

• A BVI offshore company must have a registered office in the BVI, which is the official address for legal purposes.

• Appointing a company secretary is not necessary for a BVI offshore company, but it is commonly done to handle signing obligations.

• Nominee shareholders are allowed in BVI offshore companies, which can provide enhanced privacy for the actual owners of the company.

• The amount of the authorized capital equals to US$50,000

• Compliance of these statutory requirements can be done with various business services provided by Tetra Consultants including nominee director and shareholder services.

Step 2: Comply with the eligibility criteria

• The initial requirement under the BVI Shipping Act stipulates that the owner of the yacht must be either a registered BVI offshore company, a citizen of the British Virgin Islands, or a foreign entity meeting the criteria for registration. If you consider to, register company in BVI we can help you with that seamlessly as it is a mandatory requirement for proceeding with yacht registration.

• Tetra Consultants can assist our clients with this crucial step in BVI Yacht Registration by providing comprehensive guidance on the eligibility criteria outlined in the BVI Shipping Act. We ensure that our clients understand the options available to them and help them navigate the process of establishing a BVI offshore company incorporation. Our expertise ensures that clients meet the necessary qualifications for yacht ownership in compliance with the regulations, facilitating a smooth and legally sound registration process.

Step 3: Select the yacht registration category

• The first step involves understanding the two categories of yacht registration available in the BVI:

• Full Registration: This entails registering the yacht in the BVI, allowing it to fly the BVI flag.

• Provisional Registration: Valid for 90 days, this registration provides temporary validity. If desired, the owner can subsequently apply for Full Registration by furnishing the requisite documentation.

• Tetra Consultants can guide our clients through this initial stage of BVI Yacht Registration, explaining the distinctions between Full and Provisional Registration. We assist clients in determining the most suitable registration option based on their needs and preferences.

Step 4: Assign a BVI shipping agent

• Tetra Consultants play a pivotal role in supporting our clients during the BVI Yacht Registration process by facilitating providing you with the BVI shipping agent. We ensure that our clients receive comprehensive guidance and assistance throughout the registration procedure. Our team works closely with the shipping agent to navigate through the intricacies of registration and to provide any essential information our clients may need.

Step 5: Submit the required documents

• Further, we will proceed to oversee the submission of the application and necessary documents to the designated BVI Shipping Agent. Subsequently, we ensure that the agent submits these materials to the Registrar of Shipping for the registration of the yacht. Our role encompasses meticulous oversight of this process, ensuring that all paperwork is accurately completed and promptly delivered to the appropriate authorities. By managing this step on behalf of our clients, we aim to streamline the registration process and alleviate any potential administrative burdens, enabling a smoother and more efficient experience.

Step 6: Get the name of the yacht approved

• To officially approve the yacht’s name, utilize Form SR101-01, ensuring the chosen name is both new and suitable. The yacht registration process offers flexibility, with registration possible at any of the following three ports:

• Road harbour,

• Gorda sound, or

• White bay.

Step 7: Obtain the official number

• Upon submission of the documents as per requirements, they undergo thorough scrutiny and are then allocated a vessel number and an official number.

• Tetra Consultants offer streamlined services to facilitate the acquisition of an official number efficiently. Additionally, we extend our expertise to assist clients in obtaining offshore financial licenses, catering to the needs of companies requiring such permits.

Step 8: Carving and marking note

• After the official number is granted, the registrar will issue a carving and marking note containing essential details such as the vessel’s name, port of registry, official number, and registered tonnage.

Step 9: Process the payment

• Submit payment for yacht registration to the British registrar, with fees varying based on the type and size of the yacht. Upon approval of payment and meeting requirements, you will receive a Certification of Registry, confirming the completion of the registration process.

Step 10: Opening a corporate bank account for the company

• Once your company has obtained the registered agent, you will proceed to open a business bank account. Our corporate bank account opening service will facilitate this process, ensuring that you have a bank account within 4 weeks. Additionally, employers must register for their social security payments before proceeding with filing the necessary documents with the Authority.

Documents required for BVI Yacht Registration

Documents required for individual beneficial owners, directors and shareholders:

• Application Form

• Declaration of Eligibility

• Passport and Visa (Individuals)

• Appointment of Respective Person

• Ownership Proof (Bill or certificate)

• Appointment of Authorized Officer (SR 101-03)

• Certificate of Incorporation (Corporate Entities)

• Proof of Deletion from Previous Registry (if applicable)

• Undertaking to Act as Representative Person (RP) form

Documents required for corporate shareholder

• Certificate of incorporation

• Company ownership declaration

• Memorandum of Association

• Articles of Association

• Latest financial statements

Regulatory requirements of BVI company registration for Yacht Registration in BVI

• A company must maintain a minimum of one director who can be an individual or a corporate entity without residency requirements.

• Company must maintain at least one Shareholder who can be an individual and a corporate body without residency requirements.

• Every company registration applicant must also appoint a Company Secretary for itself who can be shareholder or director.

• The Company can avail of a registered address for running business operations in the British Virgin Islands.

• The amount of the authorized capital equals to US$50,000.

Accounting and tax obligations for yacht registration in BVI

• BVI Yacht Registration entails companies encountering accounting and tax obligations akin to those of standard businesses. Tetra Consultants offer comprehensive services ensuring compliance with all accounting and tax requirements. The outsourcing of these services not only guarantees adherence to regulations but also aids in minimizing overhead costs for companies. By entrusting Tetra Consultants with their accounting and tax obligations, companies can focus on their core operations while maintaining regulatory compliance effectively.

Accounting obligations

Annual financial return

• Starting from January 1, 2023, shipping companies in BVI, like any other standard company subject to changes in the laws, are obligated to submit an annual brief financial return to their registered agent under Article 98A of the BVI Business Companies Act, 2004. This return includes a balance sheet and an income statement, excluding directors’ or auditors’ reports. Exceptions apply to listed companies, entities regulated by financial services laws, those filing tax returns with the Inland Revenue Department, and companies in liquidation. Filing deadlines vary based on the company’s financial year-end, with the first annual return due by September 30, 2024, for companies following a calendar year.

Keeping accounting records

• Under Article 98 of the BVI BC Act, 2004, like any other BVI companies, shipping companies are mandated to maintain comprehensive financial records, including invoices, contracts, and bank statements, for at least five years. These records should detail all transactions, sales, purchases, assets, and liabilities, facilitating accurate financial position assessments. Records can be kept in written or electronic form, adhering to the BVI Electronic Transactions Act. Failure to comply incurs a fine of US$50,000.

Financial statements and audit

• Like BVI companies, shipping companies, excluding regulated entities, are not obligated to prepare and submit annual financial statements. However, they often opt for audited financial statements for various reasons like corporate policies, negotiations, or due diligence requests. Additionally, controlling persons may require them for tax compliance. If audited, financial statements must adhere to International Financial Reporting Standards or local GAAP and be audited according to International Standards on Auditing. Filing an annual return with the registered agent remains mandatory regardless.

Tax obligations

• Governed by the BVI Companies Act of 2004, shipping companies in BVI enjoy extensive tax exemptions. Dividends, interests, rents, royalties, and other payments are exempt, including capital gains from shares and securities.

• BVI boasts a highly favorable tax regime, with no corporate tax, capital gains tax, or investment income tax, effectively establishing it as a tax-free jurisdiction. While all business entities are tax-exempt, they are subject to an annual license fee.

• Non-residents receive favorable treatment, with no withholding tax imposed on dividends, interest, or royalty payments.

• Business entities also engaged in Yacht Registration in BVI remain tax-free regardless of income source, except for a 10% payroll tax applicable to businesses employing local staff. The initial US$ 10,000 is exempt from taxation.

• BVI lacks double taxation agreements with any nation, ensuring confidentiality regarding income, profits, and transactions of BVI entities.

• To enhance tax compliance, BVI has entered into a Model 1B Inter-Governmental Agreement with the United States, known as the US FATCA Agreement. This facilitates the reporting of financial accounts held by US taxpayers or foreign entities with substantial US ownership interest by BVI Financial Institutions.

Looking for BVI Yacht Registration

• BVI Yacht Registration, whether opting for Full or Provisional Registration, is a meticulous process requiring adherence to regulatory standards. Tetra Consultants offer comprehensive support, ensuring seamless navigation through each step of the registration journey. Beyond yacht registration, our services extend to various comprehensive services, such as corporate bank account opening, legal document drafting, nominee director and shareholder services, and legal representation. With Tetra Consultants, clients receive not only expert guidance in yacht registration but also a full suite of solutions to meet their broader corporate requirements with efficiency and precision.

• Contact us to know more about BVI Yacht Registration and our team will revert back in 24 hours.