offshore solutions since 1988
C A Y M A N I S L A N D S
Cayman registered vessel owned by a Cayman company enjoys all the privileges afforded to the British Flag and full international recognition while benefiting from the tax free status and confidentiality laws of the Cayman Islands.
The Cayman Islands offers important advantages to larger vessels. Pleasure craft of any size are exempt from requirement of recurrent surveys on vessels over 13.7m and 24m and exempt of strict laws affecting manning of vessels over 80 GRT.
Private chartering is acceptable. With respect to larger vessels, the Cayman Islands will be endorsing the MCA mega yacht code for vessels over 24m, engaged in chartering but carrying 12 or less passengers. The Cayman Islands Shipping Registry provide support to help with the implementation of the regulations.
For a Ship to be registered in the Cayman Islands the following conditions must be complied with:
The owner must be British or EC citizen or be an individual or company in specified British dependencies e.g. Cayman, Gibraltar, Isle of Man, Bermuda, etc. Ownership requires only 33/64 or more to be "British". It should be noted that a Cayman company regardless of nationality of its beneficial owners would qualify as a "British" owner.
The owners are required to appoint a local representative agent as a point of contact with the Registrar of Ships.
The ship is subject to survey by the Marine survey department to ensure compliance with international standards.
The ship requires a Safe Manning Certificate and the three senior officers (Master, Chief Officer and Chief Engineer) require either British certificates or appropriate certificates considered the equivalent - certificates from certain Commonwealth countries or from NATO or EEC countries.
UK and other EC citizens are able to register yachts in the Cayman Islands in their own names. This avoids the expense of forming and maintaining a yacht owning company. However, incorporation of a company does secure limited liability whereas an individual owner risks the consequences of unlimited liability. Limitation of owner's liability is especially important where the yacht is to carry passengers, either as guests or by charter. A limited liability company is the normal structure used. Its effectiveness, however, is determined by the governing law of the companies.
If privacy is likely to be required, either now or in the future, then shares in ordinary companies should be held by our nominee company from the outset. We, in turn, issue a nominee agreement giving beneficial owners access to their shares on demand. In this way, the register of members (shareholders of record) will not disclose the names of the beneficial owners, should someone wish to invoke a discovery of assets.
The benefits of registering in the Cayman Islands are as follows:
Manning restrictions are less onerous than for other British dependencies, while still providing the benefits of
flying under the Red Ensign Flag.
Red ensign flag entitles ships to the protection of the Royal Navy.
Full assistance of the British consular service worldwide, which is especially useful in connection with crew matters.
Absence of exchange controls.
No income, corporate or capital gains taxes exist in the Cayman islands. (i) Political stability and full British
Documents which require to be submitted for registration are as follows:
Appointment of authorized officers.
Form GSR 342 - approval of the ship's name.
Application to register, either by the owner or his agent, who is authorized in writing, and under the company seal in the case of company ownership.
Certificate of survey - to be organized through the Marine Survey department, using classification societies, if necessary, in the short term. Survey fees are US$80 per hour plus surveyors traveling expenses.
Declaration of ownership.
On registration the Registrar allocates an official number to the vessel and issues a carving and Marking Note to the surveyor. Where required the Registrar will also assign the international call sign.
Government Fees - Yacht Registration
Yacht Registration Fee Up to 1500 GRT
Annual Tonnage Fees Up to 200 GRT
Thereafter, up to 1000 GRT
Thereafter, over 1000 GRT
Annual tonnage fees are pro-rated quarterly for the balance of first calendar year of registration.
Annual Radio Station License
Registration of a Bill Of Sale/Mortgage (recording, transfer, or discharge):
Up to 1500 GRT
Government Fees - Company Registration
authorized share capital not exceeding
Ordinary Non-Resident Company
Foreign Company (registered to operate in the Cayman Islands)
Annual Fee Exempted Company
Ordinary Non-Resident Company
Only the Registration fee is paid during the first calendar year of registration. Annual Fees are payable in January of each subsequent year. It is not necessary to issue all shares authorized. However, some owners prefer to limit authorized share capital to, say, US$2,000 and issue all shares. All classes of company listed above can own yachts. Exempted companies
offer more privacy than ordinary companies.
Registration Of Company And Yacht Company formation, legal fees, subscribers' meetings, etc.
Setting up the registered office, corporate records, meetings, statutory returns,
client liaison, etc. approx.
Miscellaneous disbursements such as photocopies, company seal and
stamp dues, approx.
Registration of one vessel, including documentation, associated company
work and client liaison, approx.
Annual Management Fee Maintaining registered office, company records, secretary, nominees, etc. payable in advance, base fee
Approximate First Year Cost
(not including any Government annual fees payable during first year).
Yacht registration with an ordinary company
Yacht registration with an exempted company
fax: +1 917 4648381, +44 870 1387648, +385 51 214355