Yacht Ownership Structures

Choosing the Right Yacht Ownership Structure

When it comes to yacht ownership, there are several different structures to consider. Each structure has its own advantages and disadvantages, so it's important to understand your options before making a decision. In this blog post, we will explore the most common yacht ownership structures and provide insights to help you choose the one that best suits your needs.

Sole Ownership

Sole ownership is the simplest and most straightforward yacht ownership structure. As the sole owner, you have full control over the yacht and can make all decisions regarding its use and maintenance. This structure offers maximum flexibility and privacy, but it also comes with the highest financial responsibility. The Cayman Islands maintains an Approved Country List and any national or indivdual from a country on the list, qualifies to register directly as a sole individual yacht owner.  

Joint Ownership

Joint ownership involves sharing the ownership and costs of a yacht with one or more partners. This structure allows you to split the financial burden and enjoy the benefits of yacht ownership at a fraction of the cost. However, it also means sharing decision-making responsibilities and coordinating schedules with your partners. As stated above, all individuals need to determine whether they qualify to register in the Cayman Islands. However if one indivudal does not qualify, they can be part-owner/s of a Cayman-registered vessel if a qualified owner owns a majority interest in the vessel. 

Corporate Ownership

Corporate ownership involves setting up a company to own and operate the yacht. This structure offers liability protection and can provide tax advantages, depending on your jurisdiction. It also allows for easier transfer of ownership and can be an attractive option for business owners who want to combine leisure and networking. The Cayman Islands acccept corporate entities established in any country on the Approved List in addition to Cayman companies. Companies formed in other countries (and not qualifying as set out above) but registered in Cayman as foreign companies and having a place of business in the Cayman Islands may also qualify to own Cayman-flagged vessels. A place of business means the place where meetings of the directors of the body corporate are regularly held.

Charter Management Programs

Charter management programs are an alternative ownership structure that allows you to offset the costs of yacht ownership by chartering your yacht when you're not using it. These programs typically handle all aspects of chartering, including marketing, bookings, and maintenance. While this structure can provide additional income, it also means less control over the yacht's use and potential wear and tear.

Local  Representative

For the Cayman Islands, if the owner of the vessel (sole individual/joint-owners or company/entity) is not resident or incorporated in the Cayman Islands, then a Representative Person resident on the Islands must be appointed to act on behalf of the owner(s) on matters within the Cayman Islands. This appointment must be made before submitting the vessel registration application to Cayman.  HMS Cayman Limited, as a maritime service provider located in the Cayman Islands, offers this service to clients. 

Conclusion

Choosing the right yacht ownership structure is a personal decision that depends on your financial situation, lifestyle, and objectives. Whether you opt for sole ownership, joint ownership, corporate ownership or charter management programs, it's crucial to weigh the pros and cons of each structure and consult with professionals who can provide guidance tailored to your specific needs. HMS Cayman is avaiblable to register your yacht

Remember, owning a yacht is a significant investment, so take the time to explore your options and make an informed decision that will bring you joy and satisfaction for years to come.