REGISTRATION OF SHIPS AND YACHTS

     One of the most effective ways of using offshore companies, is the registration on such companies movable property and real estate. This property can be ships and yachts, as intended for commercial use, and pleasure yachts. 
     Ship registration in offshore jurisdictions has several advantages including:
     1. Taxes.
     In most offshore jurisdictions there is no taxation of direct income taxes derived from the use of the vessel. In a number of offshore jurisdictions there is no taxation and indirect taxes and customs duties. In addition, one of the advantages in this case are favorable conditions for the registration of yachts and the minimum cost of the extension of such registration. 
     Registration deadline yachts, in the case of a complete set of required documents is about two weeks.  
     2. Privacy.
     Privacy ownership can minimize the risks of any kind both commercial and personal potential claim. In that case, if you own a boat privately by possession of an offshore company, it protects you from personal claims of third parties in respect of such ownership. 
     3. No difficulties in purchasing the ship.
     There are various options for the purchase of the vessel:
A) You get a boat directly from the factory of the manufacturer;
B) You get a boat on the "secondary" market;
B) The vessel is in your property and you want to register it to an offshore company. 
     Certainly the most attractive and convenient option is to purchase the vessel at the "secondary" market or from the factory of the manufacturer, since the relationship between you and the ship is not visible, because the vessel is purchased on the name of an offshore company. 
     In the third case, however, difficult to observe the principle of confidentiality. To achieve the confidentiality you need to make a number of different transactions or use a variety of complex schemes. 
     The process of purchase and sale of the vessel is quite simple and not burdened by various bureaucratic formalities, which allows you to save your money and your time. Sale of the ship is not subject to taxation, which is important, considering the high cost of vessels. 
     4. Customs formalities.
     In Ukraine, unfortunately, the cost of clearance of ships is quite high - 10-20% customs duty plus 20% VAT. Therefore, it is advantageous the shipowner to  to register the vessel under a different flag, using the data to an offshore company registered in one of the relevant jurisdictions. 

     TYPES OF SHIP REGISTERS
     There are four types of ship registers:
     1. Territorial or "closed" registries - are usually more stringent criteria for establishing ownership Examples of such registries can be found in most European countries, in addition to "international" registers.
     2. "Open" registers - are created to provide services to the international shipping community. Best known examples are the registries of Liberia and Panama.
     3. "Offshore" or "international" registers- traditionaly established registers as a deterrent exodus of ships from the original registers. These registers provide shipowners to reduce operating expenses, and some of them to attract foreign shipowners. Examples include international registries of Norway, Denmark and Germany.
     4. "Double" or " bareboat" registers - make it possible to register vessels chartered under a bareboat charter. Examples of countries that allow dual registration are Germany, Australia, Liberia and the Philippines. However, do not confuse this kind of registration with double registration in the literal sense of the word. Registration in the two registers at the same time is prohibited.
     Select the country of registration is extremely important, and it is not easy to implement. In this regard, it is recommended to seek assistance from an experienced agent or to the law firm in a position to provide information and assistance necessary to make the right decision and passing the registration process. If you need to register your yacht or ship, or if you, as owner, looking for a jurisdiction of the flag of convenience, please contact us and we will do all necessary formalities.
     We offer registration of yachts under the following flags:

     Specialists Legal Agency “Locman” will help you to choose a jurisdiction for the registration of the vessel and will answer any questions you may have, providing a complete and professional consultation.

     Specialist of the department of registration of courts and yachts Elena Mokrjak: helenp@ukr.net