Cayman Islands Yacht Registration

Cayman Islands Yacht Registration

• The Cayman Islands Yacht Registration system operates within the western Caribbean Sea, while the islands themselves comprise the idyllic trio of Grand Cayman, Cayman Brac, and Little Cayman. Spanning a combined area of 264 square kilometers, these islands lie south of Cuba and northeast of Honduras, positioned between Jamaica and the Yucatán Peninsula.

• Since 1903, the Cayman Islands have boasted a robust shipping registry, managed by the Maritime Authority of the Cayman Islands. Renowned as a Category 1 British Register of Ships, the Cayman Islands Shipping Registry holds a prestigious position as the leading offshore registry for super yachts globally. Upon acquiring a yacht registration becomes imperative for navigating waters and accessing ports. As emphasized by the Cayman Islands Shipping Registry (CISR), a registered ship is conferred with a nationality, essential for international legal protection. Offshore registration, facilitated through a company based in an offshore financial center (OFC), ensures both corporate and vessel compliance with legal requirements.

• With an impressive 15% share of the world fleet for yachts over 30 meters and a staggering 20% for those surpassing 40 meters, it remains a beacon of excellence in maritime registration. Tetra Consultants provides expert assistance for Yacht Registration, ensuring a smooth and efficient process for clients seeking to navigate the intricacies of maritime registration in this prestigious jurisdiction. Our services include:

• Cayman Islands Yacht Registration

• Register company in Cayman Islands

• Offshore company incorporation

• Corporate bank account opening

• Accounting and tax obligations

Advantages of Cayman Islands Yacht Registration

Tax benefits

• Opting for Yacht Registration in the Cayman Islands presents considerable advantages, primarily due to its tax-neutral jurisdiction. Yacht owners stand to gain substantial tax savings on fees related to taxes, registration, and VAT. This tax-neutral status alleviates financial strains associated with yacht ownership and operation, rendering the Cayman Islands an appealing destination for maximizing financial returns in the maritime sector.

Legal protection

• Cayman Islands Yacht Registration affords legal protection by classifying registered yachts as British vessels, thus granting them the shield of the British Royal Navy. This classification, operating within the prestigious Category 1 British Registry under the Red Ensign Group, ensures top-tier flag status worldwide, reinforcing the security and prestige of vessels under its jurisdiction.

International recognition

• Cayman Islands Yacht Registration offers unparalleled international recognition, granting registered vessels whitelist and low-risk status at major ports globally. This prestigious status streamlines operations and reduces the frequency of inspections, ensuring smoother sailing for yacht owners. Additionally, registered owners gain access to round-the-clock support services in 15 key global locations, enhancing peace of mind and operational efficiency no matter where their journeys take them. Such benefits solidify the Cayman Islands as a premier choice for Yacht Registration, catering to the needs of discerning owners seeking seamless international navigation.

Comprehensive ownership structure

• Cayman Islands Yacht Registration offers extensive ownership options, allowing yacht owners to select from a range of structures such as individual, joint, company, or shipping entity registrations. This flexibility accommodates diverse preferences and needs, empowering owners to tailor their ownership arrangements to align perfectly with their specific requirements and objectives.

Global reach and support

• The Cayman Islands Shipping Registry extends its global reach and support to yacht owners through representative offices in multiple countries, including the Cayman Islands. This extensive network guarantees comprehensive assistance and services regardless of location, improving the overall registration and operational experience. With representative offices in various countries, transactions, communication, and support for yacht owners are streamlined, ensuring a seamless and efficient process.

Can a foreigner proceed for Cayman Islands Yacht Registration?

• Yes, foreign individuals and entities are eligible to register yachts in the Cayman Islands, with 100% ownership structured around forming a company or shipping entity within the Cayman Islands, European Union (EU) or European Economic Area (EEA) nations, or countries listed in the Third Schedule of Cayman Islands Money Laundering Regulations. Tetra Consultants specializes in facilitating Cayman Islands Yacht Registration for foreigners, providing expert guidance on selecting the optimal ownership structure. Tetra consultants assist foreign entities in establishing compliant business operations in the Cayman Islands, ensuring eligibility to register and own Cayman-flagged vessels, thereby streamlining the registration process for seamless international navigation.

How long does it take for Cayman Islands Yacht Registration?

• At Tetra Consultants, we streamline the Yacht Registration process in Cayman Islands, typically completing it within 1 week upon receipt of all necessary documentation. For clients seeking immediate registration, we offer an over-the-counter service for an additional fee, contingent upon the submission of complete documentation. Our efficient handling of all required paperwork expedites the process, ensuring swift and efficient Yacht Registration for our clients.

• You can also expect to register company in Cayman Islands in 2 weeks. Additionally, we can also provide corporate bank account opening services through which you will have your business bank account in 4 weeks for maintaining financial aspects of your yacht.

• Thus, you can expect to have a fully operational Yacht registration within 7 weeks including company registration and corporate bank account opening.

Types of Cayman Islands Yacht Registration

There are various types of registrations which are as follows:

Full registration

• Full registration in Cayman Islands Yachts Registration entails completing all necessary registration forms, submitting supporting documentation, and paying applicable fees. This process culminates in the issuance of a Certificate of British Registry (COBR), officially recognizing the vessel’s registration under Cayman Islands jurisdiction.

Interim registration

• Interim registration is an option provided during the transfer of ownership for a foreign-owned and flagged ship to an owner eligible to own a Cayman vessel. This temporary registration allows the vessel to operate under Cayman Islands jurisdiction while the formal registration process is completed. It is typically utilized when transitioning ownership to a party intending to register the vessel permanently in the Cayman Islands.

Term registration

• Term registration in Cayman Islands Yachts Registration serves as a temporary solution when full vessel registration is impractical due to the unavailability of the Certificate of Survey and commercial time constraints. This Term Certificate of British Registry is valid for up to 90 days, without extension provisions. The vessel owner must commit to providing the Certificate of Survey within this timeframe to finalize the registration process.

Under construction registration

• Under construction registration in Cayman Islands Yachts Registration allows vessels that are currently being constructed, along with any associated mortgages, to be registered. This registration status acknowledges the ongoing construction process and provides legal recognition for the vessel and its financing arrangements during this phase. Once construction is completed, the registration can be updated to reflect the vessel’s final status.

Demise (bareboat) charter registration

• Demise (Bareboat) Charter registration in Cayman Islands Yachts Registration encompasses both Demise Charter-Out and Demise Charter-In vessel registration options. Demise Charter-Out involves registering a vessel under a bareboat charter agreement where the charterer assumes full control and responsibility for the vessel. Conversely, Demise Charter-In entails registering a vessel under a bareboat charter agreement where the vessel is chartered from a third party. These registration options cater to varying needs and arrangements within the maritime industry.

How to obtain Cayman Islands Yacht Registration?

Step 1: Register a Cayman Islands Exempt Company

• While you proceed to register yacht in Cayman Island you will be required to register company in Cayman Islands. The most suitable type of business entity for Cayman Islands Yacht Registration is an exempt company. This type of company has the same incorporation requirements as an ordinary company but may not conduct business in the Islands except those related to the operation of the yacht. The Cayman Islands Exempt Company is a popular choice for yacht registration due to its tax-neutral status and the ability to operate under the recognized British flag.

• The statutory requirements for this business entity includes:

• A minimum of one director is required, with no residency requirement.

• The minimum number of shareholders is one, and there are no residency requirements for them.

• An exempted company must have a registered office in the Cayman Islands provided by a service provider licensed for such purpose in the Cayman Islands.

• There is no requirement for a company secretary.

• The standard share capital is US$ 50,000.00 divided into 50,000 shares of US$ 1.00 each

• An exempted company must file an annual return with the Registrar of Companies at the start of each year together with an annual fee.

• An exempted company must maintain the following registers at its registered office: Register of Directors and Officers, Register of Members, and Register of Mortgages and Charges.

Step 2: Choose a registered agent

• When embarking on the journey to register your yacht in the Cayman Islands, the initial crucial step is to designate a local representative who will serve as your trusted agent within the Cayman Islands. This appointed representative, entrusted with handling all administrative tasks, ensures seamless compliance with local regulations throughout the registration process. At Tetra Consultants, we offer comprehensive local representative services tailored specifically for Cayman Islands Yacht Registration. Leveraging our expertise by engaging with Tetra Consultants, a reputable service provider who guarantee efficient and reliable handling of your Yacht Registration needs.

Step 3: Choose a name for your yacht

• Following the appointment of your local representative, the subsequent step involves selecting a distinct name for your yacht, ensuring it does not duplicate any other vessel registered with the Cayman Islands Shipping Registry. At Tetra Consultants, our dedicated team can swiftly verify the availability of your desired name across all three ports of registration. With our efficient service, we commit to providing confirmation, facilitating the smooth progress of your Yacht Registration process.

Step 4: Collate the necessary documents

• Prior to initiating the Yacht Registration process, it is essential to collect requisite documentation. These crucial documents comprise the builder’s certificate, bill of sale, insurance certificate, certificate of survey, certificate of tonnage, and deletion certificate. At Tetra Consultants, we offer comprehensive support by providing legal drafting services for the preparation of these necessary documents. With our expertise, we ensure that all documentation is meticulously prepared and in compliance with regulatory requirements, expediting the registration process for your yacht seamlessly.

Step 5: Complete the application forms

• Proceeding further, the subsequent step involves filling out the application forms for Yacht Registration to Cayman Islands Shipping Registry (CISR). These forms, along with guidance for completion, are available through Tetra Consultants. Essential information such as the yacht’s name, ownership particulars, and technical specifications will be required for completion. With our assistance, we ensure thorough guidance throughout the form completion process, facilitating the smooth progression of your Yacht Registration journey.

Step 6: Pay the registration fees

• Upon completion of the application form, it becomes necessary to settle the applicable registration and local agent fees. These fees are contingent upon the yacht’s tonnage and can be conveniently processed through Tetra Consultants. Our streamlined payment process ensures efficiency and convenience, allowing for seamless transaction of fees essential for the Yacht Registration process.

Step 7: Await approval

• Following the submission of the application form and the payment of registration fees, you will need to await approval from the Cayman Islands Shipping Registry. Typically, this process is finalized within a few days, ensuring swift progress in your Yacht Registration journey.

Step 8: Receive your registration certificate

• Upon approval of your yacht for registration, you will be issued a registration certificate by the Cayman Islands Shipping Registry. This certificate will be dispatched to you via international courier, and it is imperative to retain the original copy onboard your yacht as confirmation of its registration in the Cayman Islands.

Step 9: Renew your registration annually

• It is crucial to remember that both tonnage fees and local agent fees must be paid on an annual basis. Registry tonnage fees should be settled by February 28th, and failure to do so may lead to penalties. Given the legal obligation to have a Cayman representative person, non-payment of fees could potentially lead to the revocation of your registration. At Tetra Consultants, we ensure timely payment of all required fees, safeguarding the integrity of your Yacht Registration.

Step 10: Open corporate bank account

• Following completion of your yacht registration in the Cayman Islands, the next step involves opening a business bank account. Our service for corporate bank account opening streamlines this process, ensuring you have a bank account established within 4 weeks.

Minimum regulatory requirements for Cayman Islands Yacht Registration

• The Cayman Islands extend acceptance to private pleasure yachts and commercial vessels of any magnitude, irrespective of their base or operational location globally.

• The Cayman Islands Register of Ships holds an international status, implying that eligibility for registration is not limited to Cayman citizens or entities registered within the Cayman jurisdiction.

Requirements for incorporating a new Cayman Island company willing for Yacht Registration are as follows:

• A minimum of one director is required, with no residency requirement.

• The minimum number of shareholders is one, and there are no residency requirements for them.

• An exempted company must have a registered office in the Cayman Islands provided by a service provider licensed for such purpose in the Cayman Islands.

• There is no requirement for a company secretary.

• The standard share capital is US$ 50,000.00 divided into 50,000 shares of US$ 1.00 each

What are the documents required for Cayman Islands Yacht Registration?

• Copy of the Vessel’s Bill of Sale

• Certificate of Good Standing

• A notarized copy of the passport or ID of the owner

• Documentation proving ownership, such as a Builder’s Certificate for new vessels or a Closed Transcript/Deletion Certificate.

• Deletion certificate

• Insurance certificate

• Certificate of survey

• Certificate of tonnage

Documents for individual owners:

• Passport copy of the individual owner.

• Declaration of Ownership.

• Bill of Sale.

• Certificate of Transmission.

• Evidence of Qualifying Owner and Proof of Legal Title.

• Vessel Dimensions and Other Details.

• Duly filled Registration Form.

• Certificate of Good Standing.

• Certificate of Tonnage.

• Ship Survey and Certification.

• Manning and Crew Compliance.

• Ship Radio Station License.

Documents for corporate shareholders:

• Memorandum and Articles of Association.

• Register of Directors (names, addresses, appointment dates).

• Register of Members (shareholder details).

• Register of Beneficial Owners.

• Declaration stating business conducted outside the Cayman Islands.

• Proper books of account.

• Minutes of all proceedings and resolutions.

• Annual return filing with Registrar.

• Annual renewal fee payment.

Accounting and tax obligations

• Companies venturing into yacht registration face accounting and tax obligations akin to those of standard businesses. Tetra Consultants offer comprehensive services ensuring compliance with all accounting and tax requirements. Outsourcing these services not only ensures 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

• Yacht companies operating in the Cayman Islands must comply with International Financial Reporting Standards (IFRS), also known as International Accounting Standards (IAS).

• IFRS/IAS provide a standardized framework for reporting financial information globally, ensuring transparency and comparability.

• When seeking accounting services in the Cayman Islands, it is crucial to engage experts proficient in IFRS/IAS to ensure compliance.

• Non-compliance with accounting standards can lead to significant fines, ranging from a minimum of US$ 200 to a maximum of US$ 45,000.

Tax obligations

• Shipping businesses in the Cayman Islands benefit from a lack of corporate income tax, providing a significant advantage for establishing a presence in this jurisdiction.

• Shipping companies are not subject to capital gains tax on profits earned, further enhancing the attractiveness of the Cayman Islands for businesses.

• There is no withholding tax imposed on dividends, interest, or royalties paid to non-residents, simplifying international transactions for businesses.

• Unlike some jurisdictions, the Cayman Islands does not have a Value Added Tax (VAT) or similar tax, easing financial operations for companies.

• Although direct corporate taxes are not applicable, the Cayman Islands imposes import duties and fees on certain goods and services, which businesses must consider.

Looking for Cayman Islands Yacht Registration

• Cayman Islands Yacht Registration presents an excellent opportunity for yacht owners seeking prestigious registration status and legal protection under a reputable jurisdiction. At Tetra Consultants, we specialize in facilitating seamless Yacht Registration processes, ensuring compliance with all regulatory requirements. Beyond Yacht Registration, we offer a comprehensive suite of business services, including corporate bank account opening, nominee director and shareholders services, and more. With our expertise and dedication to client satisfaction, Tetra Consultants is your trusted partner in navigating the complexities of Cayman Islands Yacht Registration and beyond.

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

FAQ

Can I submit vessel registration forms, supporting documentation, and mortgage documents at locations other than Head Office?

What documents are needed for a Cayman Islands Registration?

What are the eligibility criteria for Cayman Islands Yacht Registration?

What types of registration are available for yachts in the Cayman Islands?