Why register a yacht

Yacht registration is imperative for all vessel owners to do in order for the vessel to belong to a particular country and thus recognized as a legal entity. Irrespective of whether the yacht is to be used for commercial, personal or any other use, it remains vital to register the vessel before operating the yacht across international waters. Selecting the most favorable flag state to register your yacht can be considered a complex process as there are a number of beneficial flag states to choose from.

Importance of registering a yacht

As mentioned, registering your yacht is one of the most important steps to consider when purchasing and owning a vessel. Selecting the flag, in which the yacht is registered under, is crucial to get right, as the flag state will determine the rights, advantages, obligations and restrictions imposed on the yacht and its intended activity.

Choosing a flag state is usually influenced by the services and benefits required by the vessel owner in order to meet personal, financial or business related goals. Each flag state varies in terms of application procedures for yacht registration and so this should also be taken into account.

Yacht registration is very important for a number of reasons, some of which are listed below:

  • Tax benefits – many yacht owners choose to register their vessel in flag states that provide favorable tax rates such as lower VAT.
  • Costs – certain flag states will offer yacht registration at a far lower cost than other flag states, and many times, there are flexible requirements in terms of crewing.
  • Stability – registering your vessel under a flag that is renowned for its stable political, financial and legal environment will ensure your yacht is faced with lower risks.
  • Protection – through registering your vessel with certain flag states you can enjoy protection and assistance from British Embassies and Consulates throughout the world.
  • Privacy – yacht registration in many favorable flag states can be done anonymously, thus heightening the level of privacy of the yacht owner. Confidentiality between the flag state and vessel owner with regards to registering an offshore structure will enable the limiting of personal liabilities and risks.

Registering your yacht will ensure that it is considered legally as a fully functioning entity. The flag state chosen by the vessel owner will impose its rules, marine standards and regulations onto the vessel and vessel owner while also protecting the vessel while it is registered under that flag.

One of the easiest and most recognized ways to prove yacht ownership is to register your vessel as this acts as a form of ownership verification for authorities. In order to obtain marine insurance it is necessary to register your vessel: without marine insurance your are leaving your yacht exposed to damage, risk and costs that could otherwise be avoided.