Company Yacht Ownership
Many owners decide to incorporate a company to take on the legal title of their yacht as an effective way to mange its ownership and operation.
Yacht owning companies are mainly incorporated in the United Kingdom or in one of the British offshore territories such as the BVI, the Cayman Islands or the Channel Islands of Guernsey and Jersey. Malta is also another popular territory.
Such jurisdictions are popular because they not only provide a well regulated and legally sound framework for the incorporation and operation of yacht companies but they also provide high quality ship registries that specialise in the registration and operation of yachts.
By establishing a company to own a yacht the owner is creating a ring fenced administrative basket for the operation of the yacht. The company becomes the contracting party for the build or purchase of the yacht and for all operational expenditure, i.e. satellite communications, fuel and all other running costs. Crew, day workers and independent sub contractors can also be appointed by the company.
All supplier invoices are made out to the owning company allowing the vessel’s accounting to be separated from that of the owner which enables vessel expenditure to be clearly partitioned. A banking facility is usually established in the name of the company with credit cards allocated for key crew members.
The holding of the yacht by a company enables the option of the yacht being sold onwards by share transfer of the owning company.
In certain cases an owner will want to combine the benefits of company ownership with a particular registration for their vessel when they might otherwise not be qualified to register in their own name because of nationality and/or residential restrictions.
For further information please do not hesitate to contact us.