british flag yachts

The global authority in superyachting

• NEWSLETTERS
• Yachts Home
• The Superyacht Directory
• Yacht Reports
• Brokerage News
• The largest yachts in the world
• The Register
• Yacht Advice
• Yacht Design
• 12m to 24m yachts
• Monaco Yacht Show
• Builder Directory
• Designer Directory
• Interior Design Directory
• Naval Architect Directory
• Yachts for sale home
• Motor yachts
• Sailing yachts
• Explorer yachts
• Classic yachts
• Sale Broker Directory
• Charter Home
• Yachts for Charter
• Charter Destinations
• Charter Broker Directory
• Destinations Home
• Mediterranean
• South Pacific
• Rest of the World
• Boat Life Home
• Owners' Experiences
• Conservation and Philanthropy
• Interiors Suppliers
• Owners' Club
• Captains' Club
• BOAT Showcase
• Boat Presents
• Events Home
• World Superyacht Awards
• Superyacht Design Festival
• Design and Innovation Awards
• Young Designer of the Year Award
• Artistry and Craft Awards
• Explorer Yachts Summit
• Ocean Talks
• The Ocean Awards
• BOAT Connect
• Between the bays
• Golf Invitational
• BOATPro Home
• Superyacht Insight
• Global Order Book
• Premium Content
• Product Features
• Testimonials
• Pricing Plan
• Tenders & Equipment

How to choose your yacht's flag state

If you consider buying a superyacht for international cruises and chartering in the Caribbean and the Med, your lawyer or broker will tell you to register and flag the yacht offshore.

The flag you choose to fly from your transom can have a direct bearing on your privacy, taxes, exposure to liability and boarding, the vessel’s success as a commercial enterprise, and, ultimately, your enjoyment of the yacht. So how do you decide which flag best serves your purposes? There is no simple answer that covers every owner, but some basic considerations do apply.

‘The choice of flag state has, over the last few years, become one of the most important decisions owners and/or their representatives must make,’ says Mike Dean of Isle of Man-based Döhle Yachts.

A flag state is the country or governmental entity under whose laws a vessel is registered or licensed. This can be the country in which the owner resides, or more commonly in the superyacht world, an offshore ship registry in a country with laws that are attuned to the complexities of yacht ownership and charter operations.

The flag state has the authority and responsibility to enforce regulations over vessels registered under its flag, including those relating to inspection, certification and issuance of safety and pollution prevention documents.

Offshore flagging advantages

Owners who choose to flag offshore – especially those who plan to make their yachts available for charter in the EU – can benefit in many ways, including, but not limited to, mitigation of some tax burdens, confidentiality of ownership, and reassuring lenders and insurance companies. An owner who intends to operate his vessel as a private yacht and not charter might register the vessel in his home country.

However, many popular flag states have appealing and relatively simple avenues for setting up offshore corporate structures that offer favourable taxation and liability protections under a stable fiscal and legal system. In addition they have construction, inspection and regulatory compliance regimes that can streamline the process of owning and operating a large yacht.

The choice of flag state has, over the last few years, become one of the most important decisions owners and/or their representatives must make

Mike Dean, Döhle Yachts

Registering as a private yacht with a non-EU flag also allows an owner to operate under the Temporary Importation regime in Europe in which a yacht can operate for up to 18 months without the vessel being subject to customs duties or the EU’s Value Added Tax (VAT).

Owners who intend to actively pursue charter in the world’s most popular destinations – in particular, the Med, which is ringed by EU states – and the Caribbean, will generally choose to incorporate, flag offshore and register as a commercially operated vessel.

In addition to the benefits above, such structures can allow the vessel to operate within the VAT system. VAT on charters is still chargeable to the end consumer – the charterer – but the system allows operators of legitimate charter businesses to account for their input tax in the normal business sense. For instance, if a business buys food for a charter, it will pay input tax on the supply but can deduct it as an operating expense.

Good and bad flags

Registering a yacht to operate commercially subjects it to a broad range of regulations related mainly to safety.

A flag state will generally require a yacht to be in compliance with construction standards set forth by one or more of the main classification societies such as Lloyd’s Register, American Bureau of Shipping or Det Norske Veritas, as well as meeting safety and practice standards set forth by government agencies such as the UK’s Maritime and Coastguard Agency (MCA), as applied by the relevant states’ national legislation.

Choosing a particular flag is a vastly complicated matter generally settled between an owner and his attorney, but there are some basic considerations, not the least of which is the potential for the yacht to be boarded and detained by authorities. In short, there are good flags and bad flags.

‘You need to be with a flag that can provide a solid commercial registration that’s accepted in the shipping industry and accepted by the governments of the world,’ says Ken Argent of Water’s Edge Consulting Ltd.

You need to be with a flag that can provide a solid commercial registration that’s accepted in the shipping industry and accepted by the governments of the world

Ken Argent, Water’s Edge Consulting Ltd

A wise starting point would be to choose a flag on the so-called ‘White List’ as maintained by the Paris Memorandum of Understanding on Port State Control (Paris MoU).

The Paris MoU consists of 27 participating maritime administrations and covers the waters of the European coastal states and the North Atlantic basin from North America to Europe. Its mission is to eliminate the operation of sub-standard ships through a harmonised system of port state control. There are other MoU groups around the world, with similar aims.

Port officers inspect foreign ships in the Paris MoU ports, to ensure they meet international safety, security and environmental standards, and that crew have adequate living and working conditions.

Flags on the Paris White List have demonstrated strong performance in those areas and thus, are subject to fewer boardings when they enter foreign ports.

Flags on the Grey List and Black List have been deemed deficient and risk more boardings and possible detentions. Traditionally, yachts have been a low priority for Port State Control (PSC) inspections, but since the advent of the New Inspection Regime in Paris, this is no longer the case and so it is important to choose a flag with a good PSC record and a rigorous approach to safety and certification.

A wise starting point would be to choose a flag on the so-called “White List”

‘There are rogue states that remain outside the family of civilised nations, and yachts that fly those flags are not welcomed,’ says maritime attorney Michael T. Moore. ‘Generally speaking, most civilised countries have subscribed to a web of treaties designed to protect the world’s oceans from pollution, overfishing and various other unacceptable practices. Almost all seafaring nations are on the alert for out-of-pattern flags.’

Other considerations extend beyond the prospect of being boarded. ‘Lenders and insurance companies will review a flag state’s enforcement of international environment and safety and procedures and standards, compliance with international regulations and casualty record,’ says Dean. ‘A poor record will inevitably affect the decisions of the lenders and underwriters.’

The Red Ensign Group

The brokerage and management firm Edmiston Company estimates as many as 80 per cent of large yachts are flagged in the British overseas territories commonly known as the ‘Red Ensign Group’, in particular, the Cayman Islands, Gibraltar and the Isle of Man.

Factors influencing that, says Edmiston, include prestige, tradition and history; international recognition of high standards and adherence to the Large Yacht Commercial Code; ready availability of a large number of qualified surveyors; protection of British maritime law, consular services and navy; and commercial confidentiality (the owning companies can be registered in the flag state, rather than the person who owns the yacht).

As many as 80 per cent of large yachts are flagged in the British overseas territories commonly known as the Red Ensign Group

‘The Red Ensign Group uses the UK MCA’s Large Yacht Code (LYC) as the criteria for building and equipping commercial yachts,’ says Clive Harrison of Döhle Yachts. ‘The LYC has been submitted (and accepted) to the International Maritime Organisation (IMO) as the UK’s equivalent provisions under the equivalence arrangements of several international conventions (Load Lines, SOLAS and STCW).

‘Yachts built and operated under the LYC do so under internally recognised standards,’ says Harrison, ‘whilst other jurisdictions operate their own codes, these have not been presented or accepted to the IMO. Compliance with LYC can have a positive impact on resale values.’

The Red Ensign registry with the largest number of yachts is the Cayman Islands Shipping Registry. According to Peter Southgate, Advisor, Maritime Policy and Legislation Development and Shipping Master of the Cayman Registry, service is one key to the flag’s popularity.

‘The various members of the Red Ensign Group offer a very high quality flag option for any owner, and we ensure that as a group, we do not compete on quality,’ Southgate says. ‘This leaves essentially only service and the possible effects of local restrictions. For example, the UK is an EU flag and hence, temporary importation would not be available to a UK-flagged vessel.’

Flags of different colours

Most flag registries, while either an agency of a government or acting on behalf of the government, are to some extent, in competition with each other for business and offer various angles that may benefit the needs of some owners.

The Marshall Islands allows qualified private yachts to charter up to 84 days a year, but subjects them to detailed surveys heavy on lifesaving, safety and fire fighting. They also have to have a minimum safe manning certificate for when they’re chartering.

‘We look at that as an owner trying to recoup some of his expenses – not putting his yacht into a commercial mode,’ says Eugene Sweeney, senior vice president, Yacht Operations for International Registries, Inc., which provides administrative and technical support to the Marshall Islands Maritime and Corporate Administrators.

The US flag has long been problematic for ship and yacht owners due in large part to onerous regulations and manning requirements. ‘The US flag has a very unwelcoming regime of laws and regulations that make it extremely difficult for a ship of any size to be registered,’ says Moore. Matt Ruane, director of JTC Marine and Aviation, cites some specific reasons a US flag may not appeal to owners of large yachts.

If you are tempted to use the flag of a state because you like the AK-47 image on it, resist.

Maritime attorney Michael T. Moore

‘US residents often wish to purchase yachts outside the US and register on to a non-US flag in order to avoid US sales and/or use tax,’ Ruane writes. ‘US Coast Guard legislation fails to differentiate between merchant vessels and commercial yachts, meaning most large yachts would fail to meet their “Seagoing Motor Vessel” requirements, which, in essence, apply SOLAS requirements to all vessels in excess of 300GT.

‘A US-resident master and crew are required for all large yachts, unless operating privately and outside of US waters. A US flag requires US corporate or private ownership, and the concept of nominee directors and shareholders is less understood and thus, less acceptable, essentially meaning that US corporate ownership is more transparent.’

The actual cost of flagging offshore is relatively low, provided your yacht meets class requirements, which is something an owner would want to consider especially when buying a brokerage yacht. The cost of bringing a yacht up to class can be substantial.

Choosing a flag is a matter best undertaken under counsel of a maritime attorney. There are many possible avenues depending on an owner’s intended use and other considerations, but at the end of the day, most advise sticking with the tried and true.

‘If for whatever reason you are tempted to use the flag of a state because you like the AK-47 image on it,’ says Moore, ‘resist.’

Originally published: Superyacht Owners’ Guide 2012.

Sign up to BOAT Briefing email

Latest news, brokerage headlines and yacht exclusives, every weekday

By signing up for BOAT newsletters, you agree to our Terms of Use and our Privacy Policy .

More stories

Most popular, from our partners, sponsored listings.

YACHT REGISTRATION — CHOOSING YOUR FLAG

Posted November 22, 2019 in Brokerage & New Build by Janine St.Denis

If you’re considering purchasing a yacht , there’s a lot more to contemplate than simply where you’ll be cruising. Your choice of flag state, the nation where your yacht is registered one of the most important decisions you will make as a yacht owner.  Your choice of flag may affect the taxes you pay regarding the purchase and operation of your yacht, how your yacht is crewed, where it may sail and how often authorities may board and inspect your yacht.

Many European nations, and the United States, have onerous and labyrinthine maritime laws and codes. If you choose to charter out your yacht, this may complicate matters further as chartering means the yacht is under commercial vessel regulations; the rules of many ports demand different standards between private and commercial.

For the American yacht owner, there may be a sense of pride to fly Old Glory off the aft of the yacht, but US vessel documentation can cause some issues. Registering your yacht in a non-US jurisdiction can be part of the solution. That being said, there are some benefits to the US flag. If your yacht clocks in at less than 300 Gross Tons (a measurement based on interior volume, not weight), obtaining a US flag is fast and easy, particularly for yachts staying in US waters or cruising The Bahamas or Caribbean; it also is patriotic and cheaper for US-built yachts. But if you’re planning to cruise outside of the aforementioned areas, the benefits to a foreign flag may outweigh your patriotic leanings.

The Foreign Flag — What it means for your yacht registration

Most US and EU yacht owners choose to register their vessels under foreign flags. The flag of the vessel determines who is responsible for regulating and inspecting the vessel. The flag nation also determines under whose laws and jurisdiction the vessel operates (local port state laws may also apply). Due to this, most US and EU yacht owners prefer to register their yachts under jurisdictions that have streamlined taxation and registration procedures and lower tax rates, and also allow for multiple registrations of vessel names and owner anonymity.

British Commonwealth or “Red Ensign” nations are among the most popular flags for yacht registration. These nations are Bermuda, Gibraltar, Jersey, Guernsey, Turks and Caicos, Isle of Man, British Virgin Islands and the Cayman Islands. These jurisdictions are favored for their tax rates, ease of administration, favorable local corporate tax laws, and adherence to the Paris Memorandum of Understanding on Port State Control (Paris MoU).  They also allow the yacht to operate under the Temporary Import Regime (which allows a non-European owned vessel to operate for 18 months without the vessel being subject to custom duties or the EU’s Value Added Tax [VAT]).

Some of the other most popular yacht flag designations are listed below.

The Marshall Islands & St Vincent & the Grenadines

Yachts with these flags have advantages similar to the Dutch registry, but these flags are better for pleasure yachting and charters based in the South Pacific. The flags are part of the Paris MOU White List, there are no taxes on operating profits, and they offer strong maritime support from maritime offices around the world.

Malta yacht registration is ideal for those who must remain registered under an EU flag but need relief from onerous VAT calculations. The Maltese flag is one of the most popular flags of registry for superyacht owners in the EU, as it is listed on both the Tokyo and Paris MOUs, the Maltese flag receives preferential treatment regarding port charges and taxes, there are no restrictions as to the nationality of the master, crew and officers of the vessel and the flag offers expedited service for registration and extensive yacht owner support.

Panama is an inexpensive alternative if you plan to sail primarily in and around the Caribbean. Panama has low tax and registration rates and offers corporate structures ideal for running a charter or other commercial related venture.

The Final Choice – Which Flag to Choose?

Each yacht owner’s situation is unique and, as such, you should consult with the appropriate maritime counsel and your yacht broker to ensure that your yacht flies a flag that makes the best sense for how you intend to use your yacht.

Owning a yacht should be fun. Let Northrop & Johnson’s yacht brokers take the complications out of yacht ownership by answering your questions on flag registration and more. Contact our expert team today.

Up Next in Brokerage & New Build

Stay informed on all things yachting and luxury lifestyle with the bi-monthly Navigator newsletters.

Proud to be part of the MarineMax family

© 2024 Northrop & Johnson

BoatNews.com

Did you know: which flag to fly on an English boat?

The British don't do things the way everyone else does. Thus their national flag is not the one flown on boats. And even, all the English boats do not wear the same flag! This is how to understand the different flags worn by our Breton cousins.

The flag of the United Kingdom combines the cross of St. George (a red cross on a white background) with the cross of St. Andrew. This combination of the 2 crosses was made in 1801 after the union between England and Scotland. It forms the flag that we know today and that we call "Union Jack.

However, the British ships that sail the oceans do not carry this flag at their stern. They fly the Red Ensign, a red flag with the Union Jack in one corner. But curiously, this flag is often on a red background, but sometimes with blue or even white. Where does this change come from and what do these colors mean?

The Red Ensign, the most popular

Since 1864, the Red Ensign has been used to signal English merchant ships, and by declination pleasure craft. It is therefore the most common flag worn by the British.

The Blue Ensign

The Blue Ensign is reserved for public service ships or ships commanded by a reservist officer of the Royal Navy (England's maritime armed force). Thus, this particular flag can be found on English merchant ships whose command and crew include a certain number of retired or reservists from the Royal Navy. More anecdotally, yachts belonging to members of certain old English clubs, for example the Royal Northern & Clyde Yacht Club are allowed to fly this flag.

The White Ensign

The White Ensign (also known as Saint George's Ensign) is the flag of the British military (the Royal Navy). It is worn on Royal Navy ships and at Royal Navy operated bases. The Royal Yacht Squadron and the ships accompanying the Queen also fly it.

A small logo on the Red Ensign

Sometimes the Red Ensign has an extra small design in the red part. These are the flags of Guernsey, Isle of Man or Bermuda.

UK Ship Register Your partner in shipping

Advantages of the uk flag.

Effortless international ship registration, a wide range of integrated services and 24-hour support. 

UK Ship Register Eligibility

Find out if you meet the requirements to register a vessel on the UK Ship Register.

Fee Calculator

Provides an indication of fees that are applicable to vessels registering on the UK Ship Register. Find out how much it costs and what you can expect to pay here.

Testimonials

Read client testimonials about their experience of being on the UK Flag and the service that they have received.

Registration

Merchant Vessel Registration

A merchant vessel is any vessel that is commercially operated. Check what necessary information is required for all services relating to merchant vessels on Part 1 of the register.

Fishing Vessel Registration

A fishing vessel is a boat used to catch sea fish for profit, even if it is only used occasionally. Find out more information on Part 2 of the register, what documents are required and the services available.

Small Ships Register

You can apply to register your vessel, manage your vessel registration, stay up to date with your applications and more with the UK Ship Register. Requirements and the process to do so will vary depending on the type of vessel you have.

Reserve a Vessel Name

Vessel names on Part 1 and Part 4 of the register should be unique. Find all you need to know about reserving a vessel name.

Contact the UK Ship Register

View our contact details or send us a general enquiry on any aspect of the UK Ship Register and our work.

Latest News

Merchant Navy Day

3 September is Merchant Navy Day, a day to remember and honour those who lost their lives in the pursuit of work at sea.

UK Ship Register maintains US QUALSHIP 21 status for 13th consecutive year

US QUALSHIP 21 (Quality Shipping for the 21st Century) is one of the world's highest standards. UK-flagged ships benefit significantly from QUALSHIP 21 status, gaining a competitive edge when trading with the US.

New Non-Executive Chair appointed for the Maritime and Coastguard Agency

On 24 May 2024, Lord Stevens of Birmingham started his role as Non-Executive Chair of the Maritime and Coastguard Agency (MCA) having been appointed by Transport Secretary, Mark Harper, following an open competition.

• Regulations

Flag etiquette

Flag etiquette is a combination of law (what you must do) and maritime tradition (expectations of behaviour within the sea faring community).

Being ill-informed of your obligations could lead you to cause insult at home or abroad by giving a signal you do not intend to give, or could lead you to a fine for breaking the law.

For many who go to sea, flag etiquette and flag rules are an essential part of the overall sailing process. Only with the right flag, correctly positioned, can you to be sure that you are giving the correct message and that any signal you are giving is clear.

For RYA members

The original RYA book (C4/01) has been reorganised into 3 parts for publication on the RYA website and is available to RYA members to download .

For all website users

A brief overview designed to demystify the basics of flag etiquette follows:

What to put where

The most senior position for a flag on a vessel is reserved for the Ensign - this is as close to the stern of the vessel as possible.  The Ensign shows the country of registry of the vessel and indicates its nationality. A UK flagged vessel must wear her ensign as required by the Merchant Shipping Act, which includes when entering or leaving a foreign port and on demand. It is recommended that the ensign is worn at all times in daylight, especially when near to or in sight of land or another vessel.  A UK registered vessel should wear the national maritime flag, the Red Ensign, unless entitled to wear a special Ensign . Wearing anything other than an authorised Ensign is a violation of British and International Law.

As the Ensign takes the senior position on a vessel, the order of precedence for positions for flying other flags is: 2) masthead, 3) starboard spreader, 4) port spreader. This assumes a simple plan of one halyard per spreader; other combinations including motor boats are discussed in the Members’ section.

Traditionally, the burgee is flown at the main masthead. A burgee must match a special Ensign if one is worn and it should always be higher than the Ensign. Flag etiquette states that only one burgee is flown at a time, but it is not uncommon nowadays to see yachts flying more than one burgee. Although this might cause offence to some, there is nothing legally wrong with this practice provided the rules governing the wearing of a special ensign are adhered to.

The starboard spreaders are used for signalling. This is where both a courtesy flag and the Q flag , as signals, should be flown. These days it is becoming increasingly common for yachts to fly a burgee from the starboard spreaders because of instrumentation sited at the main masthead. Again, legally there is nothing wrong with doing so but this practice presents a number of problems for those who wish to adhere to the traditions of flag etiquette.

More than one flag may be flown on a halyard except that flag etiquette states that no flag can be above the burgee on the same halyard and no flag can be worn above the courtesy flag. If you fly a burgee at the starboard spreaders and are sailing in the territorial waters of another country this presents something of a dilemma, particularly if you must fly a burgee to match a special Ensign. Unless the burgee is in its traditional position at the masthead, you risk flouting one or another element of flag etiquette. How you choose to resolve this is a matter of choice.

A word on courtesy flags, most countries use their national flag at sea and it is therefore not uncommon to see a foreign visitor flying a Union Jack as a courtesy flag when visiting UK waters. This is wrong; the correct flag is always a Red Ensign. There is no legal requirement to fly a courtesy flag; it is a courtesy that acknowledges that the vessel will respect the laws and sovereignty of that country. However, if one is not flown or it is tatty or faded, it may cause grave offence and in some countries can lead to a fine.

The port spreaders are used for house flags . A house flag is normally but not always a small rectangular version of a burgee. It may indicate membership of an association (e.g the RYA) or society or may be to indicate membership of another club should that club have a house flag.  More than one house flag may be flown on the port halyard, but with caution as too many might appear vulgar to some.

The Union Jack, Welsh Dragon, the Crosses of St Andrew, St George and St Patrick and the EU flag are primarily land flags and must not be flown at sea as an Ensign by cruising yachtsmen. At sea the cross of St George is the flag of an Admiral and it should therefore not be flown by anyone else, without special dispensation. A vessel flying the St Andrew’s Cross could be mistaken as saying "my vessel is stopped and making no way through the water" as this is the meaning of code flag M which has the same design and the St Patrick s Cross could be misinterpreted as code flag V "I require assistance".  

Union Jack or Union flag?

There is often a lively debate about which term is correct. In fact both terms are acceptable having been given parliamentary approval in 1908 when it was stated that "the Union Jack should be regarded as the National flag".

Sizing your flags

The sizes and condition of flags are important. They should not be tatty and should not hang in the water, but should still be large enough to be seen.

The best advice is "what looks right" but a rough guide is:

The general guideline for the size of Ensign used to be an inch per foot of yacht, but on many modern yachts this is found to be a little on the small side for the vessel to look "well dressed". Roughly speaking a 3/4 yard Ensign should look right on a boat of 21-26 ft, 1 yard for 27- 34 ft, 1 1/4 yard for 35 - 42 ft, 1 1/2 yard for 43 - 50 ft and 1 3/4 yard for 51 - 60 ft, but some discretion may need to be applied.

A burgee of 15" in the fly (the horizontal measurement) should look appropriate on vessels up to 34ft. This increases to 18" for up to 42ft, 24" for up to 50ft and 30" up to 60 ft.

Courtesy Flag

Having an undersized, faded or tatty courtesy flag in many places is worse than having no courtesy flag. Again as a guide only, 12" in the fly should look appropriate for 21-26 ft, 15" for 27- 34 ft, 18" for 35 - 42 ft, 22" for 43 - 50 ft and 30" for 51 - 60 ft. Availability may however end up dictating the size of the flag.

House flags

A house flag of a similar size to those listed for the courtesy flag will generally be appropriate.

Special Ensigns

In addition to the national maritime flag, the Red Ensign, there is a White Ensign, a Blue Ensign and there are a number of Red Ensigns with a badge, Blue Ensigns with a badge and a light blue Ensign with a badge. These additional Ensigns are special or privileged Ensigns may only be worn with permission, which is granted ultimately by the King.

A warrant grants this permission and the Ensign must be worn in accordance with the warrant, which will in most cases require the corresponding burgee to be displayed. In most cases the warrant is granted to a Yacht Club, which in turns gives its members permission to wear the Ensign under the conditions of the warrant, by issuing the members with a permit.

The RYA has no power to police the wearing of ensigns or prohibited flags other than by spreading the word about flag etiquette and encouraging good practice.

The RYA flag etiquette book C1/04 has been re-written and is published online for the benefit of RYA Members.

Practical Boat Owner

• Digital edition

Boat flag etiquette: Everything you need to know about ensigns and burgees

• Andy Du Port
• April 20, 2022

Andy Du Port draws upon 50 years’ experience to share the customary way of doing things when it comes to boat flag etiquette…

Illustration by Jake Kavanagh

Almost everything we do, ashore and afloat, is governed by laws, which we must obey, and guidance, which we can accept or ignore.

When driving, we are governed by the Road Traffic Regulation Act and guided by The Highway Code.

At sea, we are bound by the Merchant Shipping Act and guided by advice from the likes of the Royal Yachting Association (RYA).

For example, the law requires us to wear our national ensign on specified occasions, but we are only advised to hoist it at 0800 and lower it at sunset.

And then we have etiquette, which may be somewhat perplexing but soon becomes second nature.

Article continues below…

Wild swimming and sewage – beware, red flags don’t always mean rough seas

The red flags were flying when I went for a swim at Boscombe Pier. I thought nothing of it. Yes,…

What is an undefaced ensign? And why does it matter? Ask the experts

Tjalling Halbertsma from Bergen, North Holland writes: “I sail a 28ft flat-bottomed Vollenhovense Bol, built in steel and a fine…

It can be specific or it can simply reflect good manners, courtesy and common sense, thus avoiding awkward or embarrassing pitfalls.

Sport-specific

All sports have their etiquette, some of which is quite prescriptive. You only have to google ‘golfing etiquette’ or ‘football etiquette’ to see what I mean.

Sailing etiquette tends to be more relaxed but, nonetheless, you should be aware of it – even if you then decide to ignore it.

The dictionary description is along the lines of: The customary code of polite behaviour among members of a particular group.

Photo: iWebbtravel/Alamy

In other words, in this context, it is ‘what most people do’ when afloat in their boats. To add confusion to this somewhat prickly subject, boat etiquette is continually changing.

When I started sailing yachts in the late 1960s it was de rigueur to conduct Colours and Sunset, with due ceremony, when in harbour.

Many a snooty look would be directed at a yacht who was two minutes late or whose crew was not smartly turned out. Nowadays, the custom has all but disappeared.

Some etiquette is founded on tradition, but most is based on practicalities which, if observed by the majority, just makes life afloat even more agreeable.

Boats under 7m LOA are not allowed to wear special ensigns. Photo: Peter Alvey/Alamy

At one end of the scale you will meet yachtsmen or women who are sticklers for what they regard as inflexible etiquette.

If you don’t conform they will glower at you from under the peaks of their yachting caps and splutter into their gin.

At the other extreme are those who are quite content for their boats to resemble Steptoe’s yard while they themselves ignore all around them. Most fall somewhere in between.

Boat flag etiquette explained

Few topics generate more discussion, irascibility and confusion than boat flag etiquette. As far as I can determine, only one boat flag (the ensign) is governed by the rule of law; if you get it wrong, you could be prosecuted.

The flying of all others is either the subject of well-founded recommendations – usually for safety reasons or to avoid confusion – or simply by what has become common practice.

This is the flag you must get right. Almost every boat which puts to sea wears an ensign. The rules are strict and enforceable under the Merchant Shipping Act: the law requires that only the relevant national ensign may be worn, in the right position.

The law also requires the ensign to be worn on certain specific occasions, such as entering a foreign port or when asked to do so by a warship.

You would be breaking the law by hoisting any boat flag other than a national ensign at the ensign staff or other authorised position.

River Class Will O’ The Wisp with ensign on the Norfolk Broads. Photo: Anglia Images /Alamy

By all means fly regional flags elsewhere in the rigging. It is a nice custom, for example, to fly the Cornish flag in Cornwall or the Breton flag in Brittany – usually at the port spreader.

Should you hoist your ensign in the morning and lower it at night? This is not compulsory and most people now do not.

Theories abound about the origins of Colours and Sunset, the most likely being that all boat flags, not only ensigns, were taken in at night for two very logical reasons: no one could see them, and it saved bunting.

This then developed into the ceremonies of Morning Colours (usually at 0800 in the summer and 0900 in the winter) and Sunset (referred to as Evening Colours when conducted at 2100 if sunset is later).

Traditionally, an ensign is ‘worn’ while all other flags are ‘flown’. Photo: Stuart Pearce/Alamy

I can find no evidence to support the various beliefs that these ceremonies show veneration for those who have lost their lives at sea or that they demonstrate respect for the monarch.

However, etiquette also comes into play. Many yacht clubs conduct Colours and Sunset, and require their members to do so.

So if you find yourself berthed for the night in sight of such a club, or in the company of its members, boat flag etiquette suggests that you should follow their lead.

Similarly, it would be remiss of you not to lower your ensign at the same time as a nearby warship.

Lowering or hoisting the ensign on a short staff is not really practicable, so it is widely accepted that the staff may be removed, with the ensign attached, and stowed for the night.

Avoid wrapping the ensign round the staff and leaving it in situ; it looks scruffy and is neither one thing nor the other.

Most other boat flags demand no such angst, but the burgee comes a close second. If you are entitled to wear a ‘special ensign’ i.e. white, blue (plain or defaced) or red (defaced), your permit will dictate that the relevant burgee must be flown at the same time.

If this applies to you, you will know all about it. If not, don’t worry. Some clubs insist their members fly the burgee at the masthead. Otherwise, the starboard spreader is an acceptable alternative.

A defaced blue ensign

Courtesy flags

Standard practice is to fly a courtesy flag when in the territorial waters of another nation, usually hoisted at the starboard spreader (never at the masthead). Some countries require a courtesy flag to be worn, and you could cause considerable offence if you do not comply.

A tricky situation arises if you normally fly a burgee at the starboard spreader, as a courtesy flag should take precedence. A solution is to transfer the burgee to the port spreader.

If the country you are visiting also requires you to fly a Q flag, your problems just get worse. There doesn’t seem to be much agreement on this but I suggest you should leave the courtesy flag on its own to starboard, and fly the Q flag below the burgee to port.

The situation will resolve itself as soon as you have been cleared by customs and can put the Q flag away.

Other flags

Basically, you can do what you like but common sense indicates that you should not fly any boat flags which could be misinterpreted.

For example, almost all the International Code Flags (A-Z and 0-9) have specific meanings. If you decide to fly flag Juliet because its blue and white stripes match your topsides, you will also be signalling ‘On fire and have dangerous cargo on board; keep well clear of me’.

For much the same reason, there is a recommended order for boat flags when dressing overall. If you follow it, not only will the flags give a pleasing appearance, you can also be sure that you do not unintentionally spell anything which you may regret.

You often see boats flying all sorts of bunting. A common boat flag is the Jolly Roger (also known as the Skull and Crossbones), or those with young children may be seen flying a kite in the form of a fish from the backstay.

Does it matter? Not really, but boat flag etiquette suggests that too many flags is a bit sloppy and makes your boat look like a fairground.

As for burgees (again), I see no reason not to fly more than one (being careful to obey the special ensign rules if relevant), but too many could imply that you are either showing off or indecisive.

You can read more boat flag etiquette guidance on the official Royal Yachting Association website .

Why not subscribe today?

This feature appeared in the May 2022 edition of Practical Boat Owner . For more articles like this, including DIY, money-saving advice, great boat projects, expert tips and ways to improve your boat’s performance, take out a magazine subscription to Britain’s best-selling boating magazine.

Subscribe, or make a gift for someone else, and you’ll always save at least 30% compared to newsstand prices.

See the latest PBO subscription deals on magazinesdirect.com

View our services on offer and how we can utilise our expertise to help meet your requirements. View All

View all our office locations and what we can offer in each jurisdiction. View All

View the latest news, publications, and videos from Saffery Trust. View All

• chevron_right
• Choosing the right…

Choosing the right flag state for your yacht: the advantage of the Cayman Islands

By Natasha Bunting

10 Nov 2023

The purchase of a yacht is a pinnacle moment. But a yacht is no ordinary luxury asset and, just as with any vehicle, there are a range of factors owners must consider beyond buying and equipping the vessel itself. One of those, the choice of flag state, is one of the final steps in the purchasing journey, but absolutely critical.

The flag determines whose jurisdiction and laws the craft operates under (although local port and state laws may also apply when in dock), and who is therefore responsible for regulating and inspecting it.

Various jurisdictions have different benefits and drawbacks, and since every yacht owner’s situation is unique, selecting the right one is a decision that should be made carefully, based on appropriate advice.

Understandably, most yacht owners prefer to register their vessels in jurisdictions that have streamlined registration and taxation procedures, to minimise bureaucracy, as well as mitigate potential taxation exposure. Those that allow for multiple registrations of vessel names and owner anonymity are also popular, in order to maintain privacy.

The appeal of the Red Ensign Group

The constituent members of the “ Red Ensign Group ” (made up of the United Kingdom, the Crown Dependencies and British Overseas Territories) are among the top choices for yacht registration.

By flying the Red Ensign flag from one of these countries, vessels are provided most of the rights and privileges that the UK merchant fleet enjoys. This can include additional help with port inspections and detentions, consular support, and even protection by the Royal Navy.

Furthermore, these jurisdictions are appealing for their ease of administration, their tax rates (including favourable local corporate tax laws), and their adherence to the Paris Memorandum of Understanding on Port State Control ( Paris MoU ).

The Paris MoU is an international agreement for managing port access by ships, to which a total of 27 countries are signatories. It governs safety rules and inspections and standardises port procedures across member states. Other MoUs around the world cover different regions and countries.

Every vessel has a risk profile, which determines what inspections are required on arrival at a foreign port, and the flag the vessel is flying forms a major part of that risk profile.

It is therefore best to flag in a low-risk country which has good standing with the Paris and other MoUs, not least because, effectively, the lower the risk profile accorded to a yacht, the fewer inspections that are needed.

Another important factor is that flag registers for states signed up to MoUs allow yachts to operate under the Temporary Import Regime. This enables non-European-owned vessels to operate for 18 months without being subject to custom duties or the EU’s Value Added Tax (VAT).

Spotlight on the Cayman Islands – why register your yacht there?

Within the REG, there are a number of advantages to registering a vessel in the Cayman Islands.

• First and foremost it is a neutral, politically-stable and highly-regarded jurisdiction that has been white-listed under both the Paris and Tokyo MOUs, an REG member, and is as a transparent and well-regulated offshore finance centre. Vessels benefit from being marked with a neutral port of registry, and one which enjoys a strong reputation for quality that is familiar with port authorities around the world.
• A wide range of global citizens are entitled to register their vessels under the Cayman Islands flag, which can help to avoid the need for company formation (which otherwise can be a useful mechanism for accessing flag registries which have certain restrictions such as nationality, but which can also add complexity for owners). If the owner of the vessel is not a Cayman resident, or the owning company is not incorporated in the Cayman Islands, then a Cayman Representative Person must be appointed to represent the owning party with respect to the serving of required documents and/or instructions under Cayman law.
• Cayman Island-registered yachts are not required to physically visit the Cayman Islands – ever. It has a network of international offices to facilitate transactions across different time zones, and Cayman Islands registration is valid worldwide. Documentation is issued in English, and is widely understood and accessible – reducing friction when dealing with port authorities.
• The Cayman Islands Register of Ships provides proof of title and enables the owner to register a mortgage on the vessel. Yachts can be coded and operated as commercial charter yachts. ‘Ship Under Construction’ registration is also available, allowing yachts to be registered while they are still being built, to provide owners with greater security during the construction process.
• The Cayman Islands’ ship registry is funded, operated, backed and staffed by the government. It therefore has excellent levels of service, driven by a customer-first ethos, resulting in a quick turnaround of applications. With so many yachts on the register, its staff have a wealth of experience. Registry fees are competitive, while the Cayman Islands does not levy insurance premium tax (which, for example, stands at 6% in the UK).

In summary, there are several material considerations which all have a bearing on the ease with which yacht owners can enjoy their craft, and the administrative and financial burden they might incur along the way. Selecting the most appropriate flag state, in consultation with suitable maritime counsel and your yacht broker, is fundamental to this.

Get in touch

Natasha Bunting

Associate Director, Corporate and Yachts

Latest Insights

Two Saffery Trust professionals named 2024 Crown Dependencies Next Gen Leaders

Saffery Trust becomes first trust firm to offer advanced cryptocurrency accounting with Cryptio

Q&A: The commercial use of Bitcoin

Q&A: Intellectual Property in a Guernsey company

Protecting art through time

Saffery Trust becomes first trust firm to offer blockchain-based data security with Wecan Group

Saffery Trust partners with Masttro to offer advanced consolidated reporting

Saffery Trust announces five promotions

Yacht insurance – key considerations to protect seaborne trophy assets

• What flags to fly and where to put them on your boat

For many a recreational sailor, the same questions come to mind every year. Where should I place the flag? And how big should it be? Can I fly the national flag? At sea you’ll often come across a less experienced crew, who seem to have fully-dressed the boat, having decorated it with flags like a Christmas tree. So let's clear up the issue. It never hurts to go over the basic principles, which are actually very simple. So where does which flag belong and what do they mean?

The place at the stern of a yacht is reserved exclusively for one thing: 

The Ensign (the national flag of the country under which the boat is registered)

This is the most important flag, which says the most about the boat and crew. This is because ships have the nationality of the state whose flag they fly under (this right is granted by the state together with the issuing of the relevant documents). Ships are then subject to the exclusive jurisdiction of that state on the high seas (which, of course, results in a number of interesting situations). Please note that on coastal seas, the law of the state whose waters you pass through also applies to the vessel. 

Where is it flown?  

At the stern, ideally on the flagpole (pushpit) or on the stern forestay (flying the flag depends on whether the ship is sailing or mooring). And it must be the largest flag on the ship

This flag should be flown in the correct manner from sunrise to sunset. It must always be hoisted first and lowered last. No other flag may be flown unless the national flag (ensign) is also flown.

How big should the flag be? According to the decree, the flag (if it is the ensign of a boat) should, for example, have a size of 0.75 x 0.50 m (on a recreational yacht).

Don't overlook other useful tips:

The starboard spreader.

The starboard spreader is reserved for courtesy flags. They are flown immediately after the ensign and lowered last before it. What flags should they commonly be?

 The flag of the state in whose waters you are sailing

It is placed under the starboard spreader and it isn’t just a courtesy to do so, it is a duty.

However, if you are sailing in Croatia on a Croatian ship, there is no need to fly a courtesy flag.

Boat owner’s flag

The yacht owner can also fly their own national flag on the boat. It can be placed on the starboard spreader, but if the owner deems it appropriate it can be flown on the port side, as it is a flag of lower importance (than the ensign).

The spreader is a mast reinforcement (between the mast and the shroud). It is placed on the mast perpendicular to the longitudinal axis of the ship (or points slightly to the stern) and is at right angles to the mast.

The Port Spreader

All other flags are flown under the port spreader. So what are the other flags you can fly on the yacht?

Signal flags

Your national flag

Yes, right here is the place for your own national flag when sailing in Croatia on a Croatian boat.

A burgee is a flag bearing the colours or emblem of a sailing club and should be flown from the main masthead. If this isn’t feasible it should be below the port spreader.

Flags of the nationalities of the crew members

Flags of the countries you’ve visited during the voyage, etc..

How large can the other flags be? They should always be smaller than the ensign. 

Special flags and occasions

Can i fly a pirate flag .

The international agreement UNCLOS (United Nations Convention on the Law of the Sea) speaks for itself. Stateless ships, ships flying a foreign flag and ships refusing to fly their ensign may be detained and inspected by warships or civil service ships, even on the high seas.

So if you are flying under a pirate flag out of ignorance or innate rebellion :) (i.e. you hang it on the place where the ensign belongs) you definitely risk an interesting experience. But also be careful not to hang in less risky places, for example, where the burgee should be as there are places and ports where you could get a pretty hefty fine.

How to greet other boats with the flag?

A sharp shot from a cannon is a thing of the past. When ships meet, instead of a verbal greeting you dip the ensign. And after the same response from the other boat it can be raised again. But who greets who first? A merchant ship is first when meeting a warship, a smaller vessel of the same flag when greeting a larger one and when two merchant ships of the same type meet, it is the one with the more junior commanding officer.

When ships meet on the high seas, it is customary to add a port salute. Dipping the flag is accompanied by three prolonged blasts of the horn and the same response is acknowledged with one short blast.

Do you know what dressing the ship is? 

Dressing the ship consists of flying national flags on top of the masts and stringing signal flags over the tops of the masts to connect the bow and stern.

When is dressing done? It is a sign of celebration and is done on national holidays. However it can it can be done in a lesser way at the order of the ship's captain on special occasions. The national flags are again placed on the tops of the masts accompanied by flying at least four signal flags from both ends of the mast boom.

Would you also like to set sail and enjoy an adventure at sea? Whether you want to sail under the Croatian, Italian or Greek flags, you’ll find everything you need with us.

Our sailboat offer:

Contact us to get the best deal.

Denisa Nguyenová

You are using an outdated browser. Please upgrade your browser or activate Google Chrome Frame to improve your experience.

• Link to search page
• US: +1 (561) 833 4462
• US: +1 (206) 209-1920
• MC: +377 99 90 74 63

Yachts for Sale Flag: British

View yacht Ava, available for sale

Ava , yacht for sale

View yacht LA CIMA III, available for sale

LA CIMA III , yacht for sale

View yacht BEL-AMI II, available for sale

BEL-AMI II , yacht for sale

View yacht AB Normal, available for sale

AB Normal , yacht for sale

View yacht 94′ Sunseeker 94 Yacht, available for sale

94′ Sunseeker 94 Yacht , yacht for sale

View yacht AGAIN, available for sale

AGAIN , yacht for sale

View yacht MAZAG, available for sale

MAZAG , yacht for sale

View yacht ASMARA, available for sale

ASMARA , yacht for sale

View yacht Titan, available for sale

Titan , yacht for sale

View yacht 84′ Sunseeker 84 Predator, available for sale

84′ Sunseeker 84 Predator , yacht for sale

View yacht Survivor, available for sale

Survivor , yacht for sale

View yacht Time Out of London, available for sale

Time Out of London , yacht for sale

View yacht Fifty Fifty, available for sale

Fifty Fifty , yacht for sale

View yacht NUTS, available for sale

NUTS , yacht for sale

View yacht GREY T, available for sale

GREY T , yacht for sale

View yacht Astrea, available for sale

Astrea , yacht for sale

View yacht Mia, available for sale

Mia , yacht for sale

View yacht WAYRA, available for sale

WAYRA , yacht for sale

View yacht Wajer, available for sale

Wajer , yacht for sale

View yacht VESPER, available for sale

VESPER , yacht for sale

View yacht –, available for sale

– , yacht for sale

View yacht Wider 2, available for sale

Wider 2 , yacht for sale

View yacht Lady Sophie, available for sale

Lady Sophie , yacht for sale

Can't find what you're looking for contact a broker for information about off-market yachts for sale..

Cookies on GOV.UK

We use some essential cookies to make this website work.

We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services.

We also use cookies set by other sites to help us deliver content from their services.

You have accepted additional cookies. You can change your cookie settings at any time.

You have rejected additional cookies. You can change your cookie settings at any time.

• Maritime & Coastguard Agency

A master's guide to the UK Flag - Large yacht edition

Updated 8 March 2022

© Crown copyright 2022

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] .

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/the-yacht-masters-guide-to-the-uk-flag/a-masters-guide-to-the-uk-flag-large-yacht-edition

Introduction

This guide is for managers, masters and officers of United Kingdom registered large commercial yachts. The legal requirements, forms, etc. of other Registers including Red Ensign Group (REG) registers will vary from those of the UK. Check with your Flag state administration for specific rules for your vessel.

The purpose of the guide is to provide easy to use information regarding United Kingdom merchant shipping regulations and administrative procedures. UK regulations and procedures may differ from those of other Flag Administrations that you may be familiar with, this guide will help you to comply with UK requirements.

Detailed requirements for operating UK Flagged Large Yachts can be found in The Red Ensign Group Yacht Code (REG Code), UK Regulations, Merchant Shipping Notices, Guidance to Surveyors and various publications including the Code of Safe Working Practices, MCA SOLAS V publication and Health and Safety leaflets; this detailed information is available on the MCA’s web site at:

https://www.gov.uk/mca

Managers, masters, and seafarers serving on United Kingdom Large Commercial Yachts are welcome to contact Large Yacht Services, or Seafarer Training and Certification Branch with queries.

Large Yacht Services – Large Yacht Survey and Certification Tel: + 44 (0) 203 817 2014 Email: [email protected]

Seafarer Training and Certification Branch Tel: +44 (0) 203 817 2200 Email: [email protected]

or the MCA Infoline 24 hours a day on: Tel: +44 (0) 203 817 2000 (Main Switchboard) Tel: + 44 (0) 781 052 8504 (For Urgent Technical Enquiries out of office hours) Email: [email protected]

Mailing Address:

Large Yacht Services CO South Tyneside College St George’s Avenue South Shields NE34 6ET

1. Manning and STCW Requirements

1.1 manning on-board.

(See REG Code - Part A, Chapter 24 - Common Annex G )

1.1.1 All commercially operated large yachts on the United Kingdom register must have a Safe Manning Document issued by the Maritime and Coastguard Agency’s (MCA) Seafarer Training and Certification Branch to signify that the Administration has approved the minimum manning levels for the yacht. Safe Manning Documents are issued as per REG Yacht Code – Common Annex G3 . Class and other organisations are not permitted to issue Safe Manning Documents for United Kingdom ships. Further details for deck officers can be found in MSN 1858 (M) as amended, for engineer officers in MSN 1859 (M) and for ratings in MSN 1862 (M) .

1.1.2 Applications for a Safe Manning Document should be made using the yacht specific form MSF 4208 , this can be found on the GOV.UK website.

1.1.3 Manning requirements on UK flagged yachts are the same whether registered as a pleasure vessel “private” or as a commercial vessel.

1.1.4 The number and categories of officers and crew stated on the Safe Manning Document signifies the minimum number required to safely take the yacht to sea. The vessel must not proceed to sea with less than this number on-board.

1.1.5 If due to exceptional circumstances a seafarer must be removed from the vessel and a replacement cannot join the ship in time it may be possible for the vessel to continue to operate, for a limited period, with one seafarer less than the specified safe manning. If a master plans to sail a vessel in non-compliance with the Safe Manning Document, they must request the MCA to issue an Exemption Certificate. however, the master must ensure that the remaining crew continue to comply with the Hours of Work Regulations.

1.2 United Kingdom Certificates of Equivalent Competency

(See MSN 1867 (M) )

1.2.1 All officers who do not possess a UK Certificate of Competency must hold a United Kingdom Certificate of Equivalent Competency issued by the Maritime and Coastguard Agency, Seafarer Training and Certification Branch.

1.2.2 The master must ensure that all officers who require a United Kingdom Certificate of Equivalent Competency (CEC) hold one and that they also hold the original of their national Certificate of Competency (COC). If an officer does not hold a United Kingdom Certificate of Equivalent Competency when they join the vessel then the master should check that an application for a CEC has been made. Applications are usually made by the owner/manager and if an application has been made a Confirmation of Receipt of Application (CRA) from the Maritime and Coastguard Agency may be requested. Where requested, these are sent to the manager or owner as soon as the application is received. A copy of the CRA should be retained on-board until such time as the officer’s Certificate of Equivalent Competency (CEC) arrives. A CRA permits the officer to sail for up to 3 months from the time of application for a CEC.

1.2.3 These procedures are important and must be followed to show any Port State Control Inspector that the Company has followed the correct procedures for the application for a United Kingdom Certificate of Equivalent Competency. This should protect the vessel from possible detention on these grounds.

1.3 Watch Keeping Ratings / Yacht Ratings

(See MSN 1862 (M) )

1.3.1 All ratings must have as a pre-requisite the following elements of STCW basic training:

• Personal Survival Techniques (STCW Code – Table A-VI/1-1)
• Fire Prevention and Fire Fighting (STCW Code – Table A-VI/1-2)
• Elementary First Aid (STCW Code – Table A-VI/1-3)
• Personal Safety and Social Responsibilities (STCW Code - Table A-VI/1-4)
• Security awareness training (>500GT) (STCW A-VI/6- 4)

1.3.2 All ratings assigned to watch keeping duties must be in possession of Watch Rating Certificates appropriate to their duties. Holders of non-STCW Yacht Master licenses, such as RYA Yacht Master Ocean, must also hold a Yacht Rating certificate if they are employed as a Yacht Rating on-board. This ensures mutual international recognition under the STCW Convention. Watch Rating Certificates issued by countries other than the United Kingdom are acceptable on United Kingdom ships provided they are issued by countries which are parties to the STCW Convention.

1.3.3 A Yacht Rating Certificate is a specific type of Navigational Watch Rating Certificate that is focused on Large Yachts. A Navigational Watch Rating Certificate (STCW II/4) is acceptable on a yacht, a Yacht Rating Certificate (STCW II/4) may not be acceptable on a vessel other than a yacht.

Those persons wishing to gain Watch Rating Certificates will find guidance in MSN 1862(M) on the training and application process.

1.3.4 Companies that wish to issue their own Yacht Rating certificates can apply to the MCA. See MSN 1862(M) for guidance on becoming an approved company.

1.4 Ship’s Cooks / Chefs and Catering Staff

1.4.1 The Merchant Shipping (Maritime Labour Convention) (Minimum Requirements for Seafarers etc.) Regulations 2014 (the “Minimum Requirements Regulations”) require that all Ship’s Cooks, catering staff and other persons processing food in the galley, on-board UK flagged vessels should be suitably qualified in food hygiene or food safety in Catering.

1.4.2 A list of qualifications and awarding bodies which fulfil the learning outcomes and assessment criteria set out in Annex 1 of MSN 1846 (M) are provided in MIN 671 (M) [footnote 1] . Level 2 is the minimum acceptable level for ship’s cooks, catering staff and other persons processing food in the galley.

1.4.3 The learning outcomes (Annex 1 of MSN 1846 (M) ) also apply to the training for stewards and all persons preparing food in the galley for whom food preparation is not a primary role. However, these persons are not required to hold the qualifications as listed in MIN 671 (M) [footnote 1] as it is expected that they would be working under qualified supervision.

1.5 Medical Fitness Certificates

All crew require valid medical fitness certificates. MSN 1815 (M) has a list of countries whose medical certificates are accepted as equivalent to a UK medical certificate (ENG 1) and is updated periodically. A valid medical fitness certificate issued by any of the listed countries can be accepted on a UK flagged yacht. Seafarers must work within the limits of any restriction or condition placed on their medical fitness certificate and report any change in their medical condition to an approved doctor for reassessment.

1.6 UK Discharge Books

(See MGN 134 (M+F) )

All officers and crew on UK ships should apply for a UK Discharge Book. Discharge books are generally used to confirm sea service as required by the MLC regulations. If a seafarer holds a discharge book (or equivalent document) issued by one of the countries listed in MGN 134 (M+F) , they are not eligible to apply for a UK Discharge Book.

2. Hours of Work and Rest

(See MSN 1877 (M) )

The applicable United Kingdom regulations are the Merchant Shipping (Hours of Work) Regulations 2018 (SI 2018 No.58). An unofficial consolidated text is available on the website at https://www.legislation.gov.uk/uksi/2018/58/contents

2.1.1 Every seafarer must be provided with not less than 10 hours rest in total in any 24-hour period, provided that:

• the 10-hour period may be divided into not more than two periods, one of which shall be not less than 6 hours. and
• the interval between consecutive periods of rest shall not exceed 14 hours, and
• the minimum hours of rest shall not be less than 77 hours in any 7 day period.

2.1.2 Situations when a seafarer is on standby but is free to sleep may be counted as rest but if at any time the normal period of rest is disturbed by callouts to work, this should be recorded as hours of work and the master, or a person authorised by the master, must ensure that the seafarer is provided with an adequate compensatory period of rest. “Call-outs to work”, include taking part in a safety drill. It should be noted that the 10-hour minimum period of daily rest must not be split into more than two periods. Multiple short periods of rest adding up to 10 hours do not provide sufficient rest to avoid fatigue.

2.2 Unmanned Machinery Space (UMS)

The time when the designated duty engineer officer on a yacht with an Unmanned Machinery Space (UMS) class notation is free to sleep may also be counted as “rest”. However, any time that the officer is called to answer an alarm condition must be considered as work.

2.3 Schedule of Shipboard Working Arrangements

2.3.1 Every yacht should have a ‘Table of Shipboard Working Arrangements’ showing the proposed rotas for in port and at sea. This is a document, or a computer display, that has been drawn up by the owner or manager (whoever is responsible for operating the ship) in conjunction with the master. It must show the maximum watch periods and minimum rest periods to be observed by all crew members.

2.3.2 The Table of Shipboard Working Arrangements should follow the model format developed by the IMO, a copy of which is in the Annexes to MSN 1877 (M) as amended. The table demonstrates that sufficient personnel are available on-board to cover all watches and to ensure minimum hours of rest can be provided. Only the master should amend the table and only after careful consideration to ensure that adequate rest periods are provided for all seafarers. Port State Control officers and MCA surveyors will expect to see a copy of this table posted on-board. It is likely that a deficiency will be raised if not found.

2.4 Schedule of Working Hours.

2.4.1 Accurate records of hours of rest should be maintained. The IMO-approved format should be used, a copy of which is in the Annexes to MSN 1877 (M) as amended. One copy should be held by the master and a copy given to the seafarer. The hours of

rest record should be endorsed by both the seafarer and the master or their deputy.

2.4.2 Any deviations from the hours of rest in the schedule must be recorded with an explanation of why the deviation occurred. These records must be available for inspection on-board at any time. You can decide where the deviations are recorded, and you can use any method that is effective provided that the records are available for inspection.

2.4.3 Electronic records are acceptable where the system used is secure, allows the seafarer to access them and allows records to be printed off when requested for inspection. The electronic record should follow the format as described in paragraph 2.4.1.

2.5 ‘Properly Rested’

The regulations place a duty on the master to ensure that all crew involved in watch keeping are properly rested and that arrangements are adequate to maintain a safe watch at all times. You are required to ensure that your yacht does not sail from any port unless all seafarers, regardless of their duty to watchkeeping, immediately after sailing have received sufficient rest.

2.6 Exceptions from the schedule

2.6.1 The regulations acknowledge that on-board any vessel there will be situations such as:

• Emergencies and situations likely to become emergencies unless action is taken.
• Essential work on-board which cannot be delayed for safety or environmental protection reasons, and
• Factors beyond the control of the master or the operator other than commercial needs.

2.6.2 When these things occur it is often necessary for crew members who are involved to miss out on their minimum rest as stated in the schedule. You have the authority as master to permit this, but you must record the fact and the reason for missing out on the minimum rest for those affected as you may need to justify your decision at a later date.

2.6.3 As soon as practicable after the normal situation has been restored the master must ensure that any seafarer who has been unable to take adequate rest, is provided with compensatory rest before continuing with their normal duties.

2.6.4 In deciding what factors might come within “factors outside the control of the master or the operator other than commercial needs” you will need to consider the circumstances. The definition was written to take account of situations such as when a Port Authority demands that the ship vacate the berth when you had planned to stay longer, or when a shift of berth is demanded unexpectedly. A request by the charterer to sail earlier so that they may minimise port dues is not a valid factor under this definition and counts as a commercial need.

2.7 Statutory Paid Leave

2.7.1 The regulations state that a seafarer is entitled to paid annual leave of at least 2.5 days per month of employment, plus an additional 8 days per year (in respect of UK public holidays) or a proportion of those periods in respect of a period of employment of less than one month or one year. This may be taken in instalments but may not be replaced by a payment in lieu, except where the seafarer’s employment is terminated. Annual Leave is provided to ensure that the seafarer is adequately rested and to support a healthy lifestyle. Replacing Leave owed with money does not achieve this even if the seafarer agrees. The master has a duty to ensure that their crew are provided with annual leave in accordance with their SEA (Payment in lieu is only permitted for untaken leave at the end of a contract).

2.7.2 Arrangements for when leave can be taken should be agreed between the seafarer, the master and the employer.

2.7.3 Where seafarers have regular periods of leave as part of their pattern of work (e.g. one month on, one month off) statutory paid leave may be included

within that pattern. This should be made clear in the individual’s Seafarer Employment Agreement (SEA).

2.8 Shore leave

2.8.1 Wherever possible, where consistent with their operational duties, seafarers should be granted shore leave in ports of call, for the benefit of their health and well-being.

2.8.2 There is no absolute duty to give seafarers shore leave in all circumstances. For example, where there is public disorder or a security risk in the port, shore leave may not benefit the seafarer’s health and well-being. Additionally, this requirement does not override the normal port security arrangements.

3. Seafarers Employment Agreements (SEAs) and Lists of Crew

(See MGN 477 (M) As Amended )

3.1 Introduction to the requirements

3.1.1 For yachts in commercial use; The Merchant Shipping (Maritime Labour Convention) Minimum Requirements for Seafarers etc. Regulations 2014 requires that every seafarer working on a sea-going United Kingdom ship shall have an agreement in writing with the shipowner, or with their employer and the shipowner, setting out their terms and conditions for working on-board. This is known as a seafarer employment agreement (SEA), and may consist of one or more documents, but must contain at least minimum provisions, which can be found listed in Annex 1 to MGN 477 (M) As Amended . It is important that the seafarer should have the opportunity to review and take advice on the SEA before signing it and must enter into the agreement freely. The SEA should be signed before the seafarer joins the yacht.

3.1.2 For yachts not in commercial use; The Merchant Shipping Act 1995, requires that every United Kingdom ship shall have an agreement in writing between each person employed and the person employing them, known as crew agreements. Refer to MGN 477 (M) As Amended for details.

3.1.3 The SEA is a requirement of both UK legislation and of the ILO Maritime Labour Convention, 2006. Failure to ensure that seafarers have a valid SEA may constitute an offence by the shipowner and may result in the ship being detained following a port State Control inspection.

3.1.4 On-board complaints procedures should be available, as stipulated in MSN 1849 (M) . The Merchant Shipping (Maritime Labour Convention) (Survey and Certification) Regulations 2013 requires every ship to which the regulations apply to have in place an on-board complaints procedure which must:

seek to resolve the complaint at the lowest level possible

enable a seafarer to complain directly to the master and appropriate external authorities

include the right of the seafarer to be accompanied or represented when making a Complaint

ensure that the seafarer does not suffer any detriment for making a complaint

In all cases seafarers must have the right to lodge a complaint directly with the master and the Maritime and Coastguard Agency.

3.2 List of Crew

3.2.1 The MLC requires that a record of seafarers under the age of 18 employed on-board is maintained.

3.2.2 On a UK vessel, the list of young persons is provided within annexes to MGN 477 (M) As Amended but is available as a separate document as follows, MLC list of young persons (MSF 4158) .

3.2.3 In addition to maintaining the List of Crew for those under 18, each crew member joining the vessel should be recorded in the List of Crew in the Official Log Book. When a crew member leaves the vessel, this should be entered into the OLB Narrative.

3.2.4 An up-to-date copy of the List of Crew used to record those employed under the age of 18 must be maintained ashore at an address in the UK.

3.2.5 The List of Crew for those under 18 remains valid until the last member of the crew on the list has been discharged from the vessel. A copy of the List of Crew must be sent when the list is closed, and at least every 6 months, to the Registry of Shipping and Seamen, together with the Official Log Book (OLB). A postal address is provided in Chapter 4.

4. Official Log Books

4.1 The Merchant Shipping (Official Log Book) Regulations 1981 (as amended) make it a requirement for all United Kingdom Commercial Yachts to carry and keep an Official Log Book.

4.2 The Official Log Book (OLB) has guidance notes on the front cover that should be read and followed. It is essential that all the relevant entries are fully completed. For example, the absence of proper entries could prejudice the position of the master in the event of an accident. It is an offence to knowingly make false, inaccurate, or incomplete entries.

Page 1 – Front Cover

4.3 The first entries are simply the details of the ship; name, port of registry, official number, gross tonnage and net tonnage. The details should be taken from the ship’s certificate of registry, noting that the official number is a unique British ship number; it is not the IMO number.

4.4 The second section is for the names of successive masters of the ship. The master opening the Official Log Book should enter their name and certificate details on the first line, successive masters should add their details when they take over command. If a master has been on the ship before and returns while the log book is still in use, they do not need to add their name a second time.

4.5 The third section is for the details and address of the registered owner, or the managing owner, manager etc.

4.6 The final section on page 1 is for the date and place at which the log book is opened.

4.7 All entries in the boxes on page 1 must be made by the master.

Note that the ‘superintendent’ referred to at the bottom of the page is an official at the Registry (RSS).

Pages 2 to 7 – Record of Seamen Employed in the Ship

4.8 This section records all the crew members. The first column “Reference number in list of crew” is for the consecutive number given to each entry in the crew list. When each crew member joins, the number opposite to their entry in the list is entered in this first column, their name is entered in the second column and the capacity in which they are employed is entered in the third.

4.9 If a crew member leaves the ship and then returns while the log book is still in use, they should be entered again with their new number from the list of crew. It may happen that the same crew member will have several entries in this section of the OLB.

4.10 Column 4 “If entry made in narrative section give relevant page.” forms an index. If any entry in respect of a crew member is made in the narrative section of the log book (pages 40 onwards) then the narrative section page number is entered at the same time in column 4. If there are several entries then the page number of each is added, separated by a comma.

An example of the completed section will look like:

4.11 All entries in this section should be made by the master.

Pages 8 and 9 – Births and Deaths

4.12 Instructions for completion are at the top of the section. It should be noted that in the section for births, the signature of the mother is required while in the section for deaths, the signature of the master and the signature of a member of the crew are both required. The crew member may be any crew member.

4.13 It is essential that the mother’s signature is given in the case of a birth and essential that the entries in respect of deaths are signed by the master and by a crew member. A failure to sign and witness these entries can invalidate them and can cause serious legal problems.

4.14 The Return of Births and Deaths form MSF 4605 referred to is available from the Registry of Shipping and Seamen or any Marine Office.

Pages 10 to 14 – Record of Musters, Boat Drills etc

4.15 This section must be completed at the time of every drill. Attention is drawn to MGN 71 (M) ‘Muster, drills, on-board training and instructions and Decision Support Systems’ . This sets out the current requirements for the frequency of drills and content. Also refer to Common Annex C of the REG Yacht Code .

4.16 Every entry must be signed by the master and by one other crew member. If it is not signed by both, the entry is invalid and will not be accepted as proof that the drills have been carried out.

4.17 If for any reason a muster or drill is not held then a statement as to the reason why should be entered in column 2. Valid reasons might include ‘vessel rolling and pitching heavily, unsafe to carry out drills’.

4.18 If a drill is postponed or cancelled then it should take place at the next suitable opportunity. It is also acceptable to carry out a tabletop drill on occasion but drills utilizing equipment and realistic scenarios are preferred.

4.19 In addition, drills are required for Entry into Dangerous Spaces. The master of any yacht of 500GT and over must ensure that drills simulating the rescue of a crew member from a dangerous space are held at intervals not exceeding two months, and that a record of such drills is entered in the Official Log Book.

Pages 15 to 18 – Record of Test Drills and Inspections of Steering Gear

4.20 This section is self-explanatory. The regulations require steering gear to be tested within 12 hours before sailing (or once per week for ships making one voyage or more per week from the same port) and emergency steering systems to be tested every 3 months.

Typical entries might appear as:

4.21 As with most sections of the OLB all entries must be signed by the master and an officer to be valid.

Pages 19 to 23 – Record of Inspections of Crew Accommodation

4.22 This section is for records of mandatory inspections of crew accommodation. The regulations require that an inspection of the crew accommodation, to ensure that it is being kept clean and that all the requirements of the crew accommodation regulations are being followed, is carried out every 7 days. The inspection must be carried out by the master or an officer appointed by the master, accompanied by one other member of the crew. Both should sign the OLB entry.

Pages 24 to 28 – Record of Inspections of Food and Water

4.23 Guidelines for food hygiene are contained in MSN 1845 (M) .

4.24 Guidelines on fresh water systems are contained in MSN 1845 (M) .

4.25 The records of inspections in this section are similar to those in the previous section. The Maritime Labour Convention and the United Kingdom Regulation requires that inspections are carried out at intervals of not more than 7 days.

4.26 The inspections in this section must be made by the master or an officer appointed by the master, accompanied by a member of the catering staff. In practice it will usually be possible to inspect provisions, store rooms, galleys etc. with a member of the catering department during the accommodation inspection.

4.27 Entries in this section must be signed by the master and by the member of the crew making the inspection. Typical entries might appear as:

Page 29 – Load Line, Depth of Loading etc

4.28 This section is self-explanatory. The information must be completed and the necessary data can be found on the ship’s load line certificate. The section should be completed by the master at the same time as the log book is opened. It should be noted that those vessels on Near Coastal operations can follow the instructions at the bottom of this page of the OLB and need only complete certain sections of the Load Line declaration. This section of the OLB represents the master’s legal declaration that they are not putting to sea with the vessel’s Load Line immersed.

Pages 30 to 39 – Dates of Departure From and Arrival at Each Dock

4.29 This section records the date of sailing and the draughts and freeboards of the ship on departure for each voyage and the dates of arrival at the next port. It must be completed at departure.

Pages 40 to 76 Narrative Section

4.30 This section is for explanatory entries. A complete list of the categories of entry to be made is contained in the Official Log Book Regulations. In general terms this section should contain entries relating to:

• changes of master
• the annexing of other documents to the OLB
• disciplinary matters
• discharge of crew members
• details of crew left behind
• promotions and demotions
• criminal convictions during a voyage
• appointments of safety officers, representatives and committees
• meetings of safety committees
• wages disputes
• closing of Lists of Crew and OLB.

4.31 If it is not practicable due to its length, or for any other reason for an entry to be contained in the narrative section, it shall be contained in a separate document annexed to the OLB and referred to in an entry in the narrative section.

4.32 Some fictional examples, designed to illustrate the type of entries that might commonly be made, are below. Every entry must be signed by the master and by a member of the crew.

4.33 The page number for every entry in the narrative section which refers to a crew member should be entered in column 4 of the list of crew section.

4.34 The requirements for opening and closing an OLB are contained in the Merchant Shipping (Official Log Books) Regulations 1981 as amended (SI 1981/0569). In summary, the logbook should be closed 6 months after the first entry is made. Should an OLB become full, another OLB should be started. An entry should be made in the narrative section of the second or subsequent book which reflects that this is a continuation book. All the books should be returned with the completed List of Crew for those under 18 when the yacht first calls into port more than 6 months after the first entry into the book.

4.35 These completed documents should be sent to the Registry of Shipping and Seamen (RSS) at the following address:

Registry of Shipping and Seamen Anchor Court, Keen Road Cardiff CF24 5JW United Kingdom

4.36 There is also a requirement to record the official working language of the ship. If this is not recorded elsewhere on-board, then it should be recorded in the OLB narrative section.

5. Continuous Synopsis Record

Where yachts are required hold an International Ship Security Certificate (ISSC) (≥500GT) they should hold a document called a ‘Continuous Synopsis Record’ (CSR). This is a form of log book that stays with the ship for its whole life and records all changes of owner, flag, name, class, ISM etc. Whenever a change occurs a new section or a new document is issued and then each has a consecutive number. The numbers should show a complete record. If a ship is sold this document must stay with the ship. The master is responsible for the proper upkeep of the CSR on-board UK ships. When you first receive a new CSR, or first join the ship, you should check that the details are correct. Port State Control will check the CSR as a matter of routine at inspections and will expect to see a continuous record, with the final document showing the current ship’s details.

5.1 Making Amendments to the CSR

When any data entry in the current CSR requires an amendment, you must act as quickly as possible. To do this you should fill in the changes on the Form 2 and send this to the Registry of Shipping and Seamen (RSS) who will enter the new changes in the ship’s master record and issue a new CSR sheet with the next consecutive number to be attached to the record on-board. After this is done you must ensure that the Index of Amendments (Form 3) is kept up to date and also attached to the current CSR in date order.

5.2 Receiving an Amended CSR

5.2.1 When you receive a new CSR or an amendment sheet, you should check its sequential number to make sure it is the correct one, review the data entries to make sure they are correct, and they cover all amendments in the Index of Amendments. You must keep all CSRs issued to the vessel. You should have a sequential record starting from 1.

5.2.2 If you find that there are amendments that are not included in the CSR you should:

complete a new Amendment Form 2 relating to each outstanding amendment and attach it to the latest CSR. List the amendments in the Index of Amendments (Form 3) attached to the latest CSR; and

forward copies of the original Amendment Form(s) to the Registry of Shipping and Seamen.

5.2.3 If, for any reason, the ship’s CSR records are lost or damaged it is essential that they are restored as quickly as possible to avoid potential delays to the ship’s voyage. You should contact RSS as quickly as possible and they will provide signed and stamped duplicates.

6. Registry

A yacht may be registered as a commercial vessel or as a pleasure vessel. The type of registration depends on how the yacht will be used. If guests are carried that do not meet the definition of – ‘Owner, their friends or family’, then the yacht is on a commercial voyage and must be registered commercially. Whether the guest is paying to be on the voyage is immaterial. Commercial yachts must comply with the REG Yacht Code.

The UK Registry of Shipping and Seamen may be contacted at:

Tel. No: 020 39 085203 Email: [email protected]

For more information and for online registration please visit the UK Ship Register website on the following link: https://www.ukshipregister.co.uk/registration/new-application/

6.1 Registration Documents

For Part 1 Commercial registration the following documentation is required. See https://www.ukshipregister.co.uk/registration/

• The Correct Fee.
• Original Application Form, MSF 4740A
• Original Declaration of Eligibility, MSF 4727
• Original Last Bill of Sale MSF 4705 or Builders Certificate MSF 4743 (if a new build)
• Copy of the Certificate of Incorporation (if company owned)
• Original Certificate of Survey for Tonnage and Measurement
• International Tonnage Certificate (ITC69) – (for vessels >500GT)
• Copy of the Large Yacht Code Certificate
• Radio Call Sign/Hull Identification Number
• Deletion Certificate (if previously registered elsewhere)
• A copy of the ship’s Continuous Synopsis Record.
• Mortgage Registration Forms MSF 4736, MSF 4737 and MSF 4739

If the vessel is to be registered as pleasure, then a coding certificate is not necessary but 5 years of original title in the form of original bills of sale/builders’ certificate is required. If your yacht is registered commercial and holds a Large Yacht Code certificate, then you must maintain the conditions of the certificate at all times for it to remain valid. When you are carrying the Owner, or transiting the Atlantic with no guests, you must maintain full compliance with the Large Yacht Code.

As an alternative to this, you may re-register your yacht as a Pleasure Registered vessel and so the Large Yacht Code does not apply. When the voyage is over, you may re-register again as a Commercial yacht. There is no charge for this, and you may do it as many times as you wish.

If you have missed a required survey window whilst operating as a pleasure-registered yacht, then you must be re-surveyed before operating as a commercial yacht.

The Large Yacht Code (REG Code) is the safety standard that the MCA considers appropriate for a large internationally operating yacht (over 24m LLL). It is the required standard for commercially operating yachts, but it is also very highly recommended that this same standard be adopted voluntarily for pleasure-registered yachts of this type.

7. GMDSS Log Book

7.1 All UK ships of 300GT or greater are required to carry a Global Maritime Distress Safety System (GMDSS) Log Book. MCA GMDSS Radio Logs are available from The Stationery Office (TSO), ref MGN 530 (M+F) . The log book is to keep records of communications relating to distress, urgency and safety radio traffic, regular positions of the ship and results of tests on radio equipment.

7.2 Instructions for completing the log book are contained in the book. GMDSS Log Books should be returned to RSS with the Official Log Book and List of Crew when these are closed.

7.3 It is not compulsory to carry an MCA version of GMDSS Log books however the following tests, listed in the front of the UK GMDSS Log, must be carried out and recorded in some form:

Radio tests required:

(a) The proper functioning of the DSC facilities shall be tested at least once each day, without radiation of signals, by use of the means provided on the equipment.

(b) Batteries providing a source of energy for any part of the radio installations shall be tested daily, and where necessary, brought up to the fully charged condition.

(c) Printer(s) shall be checked daily to ensure there is an adequate supply of paper.

(a) The proper operation of the DSC facilities shall be tested at least once a week by means of a test call when within communication range of a coast station fitted with DSC equipment. Where a ship has been out of communication range of a coast station fitted with DSC equipment for a period of longer than one week, a test call shall be made on the first opportunity that the ship is within communication range such as a coast station.

(b) Where the reserve source of energy is not a battery (for example, a motor generator), the reserve source of energy shall be tested weekly.

(a) Each EPIRB and satellite EPIRB shall be tested at least once a month to determine its capability to operate properly using the means provided on the device and without using the satellite system.

(b) Each search and rescue radar transponder shall be checked at least once a month using the in-built test facility and checked for security and signs of damage.

(c) A check shall be made at least once a month on the security and condition of all batteries providing a source of energy for any part of a radio installation. The battery connections and compartment shall also be checked.

(d) A check shall be made at least once a month on the conditions of all aerials and insulators.

(e) Each survival craft two-way VHF equipment shall be tested at least once a month on a frequency other than 156.8 MHz (VHF Channel 16).

8. On-Board Safety

8.1 safety officials and committees.

(See Code of Safe Working Practices Chapter 13)

8.1.1 Every person on-board a ship has a responsibility for safety. Merchant shipping regulations place specific responsibilities on those personnel, ‘safety officials’, with designated duties to ensure the safety of those on-board. A ship’s safety culture is dependent upon the strong support and encouragement from the ship’s senior management. On every ship where five or more seafarers are working, the owner or the manager is required to appoint a safety officer.

Safety Officer

8.1.2 The master is required to record the appointment of a safety officer in the Official Log Book. The safety officer should have suitable training, be familiar with the statutory responsibilities for health and safety and with the principles and practice of risk assessment.

8.1.3 Amongst the duties of the safety officer it is the responsibility to ensure that:

The provisions of the Code of Safe Working Practices and the company’s/operator’s occupational health and safety policies are complied with.

Occupational health and safety inspections are conducted for each accessible part of the ship in which the crew may be required to work. These must be completed at least once every three months or more frequently if there have been changes in the working conditions.

Work is stopped which they reasonably believe may cause an accident and inform the master who shall be responsible for deciding when work can safety be resumed.

The minutes of each safety committee meeting are accessible to all the crew.

Investigations into Health and Safety incidents on-board are carried out.

Safety Representative

8.1.4 On every ship in which five or more seafarers are working the company/operator is required to make rules and arrangements for the officers and ratings to elect safety representatives.

8.1.5 A safety representative must be someone who has at least 2 years sea service since they were 18.

8.1.6 The master is required to record the election of safety representatives to a safety committee in the official log book, in the narrative section. There are rules covering the number of representatives that must be elected depending on the total crew size. In general:

if the ship carries less than 16 crew, one safety representative elected by the officers and ratings together.

if the ship carries 16 or more crew; one safety representative elected by the officers and one elected by the ratings.

As far as practicable, seafarers at all levels in all departments should have effective representation.

8.1.7 Those who are elected as safety representatives do not have to stay in that role for the whole voyage, others can be elected to take over. You should ensure that any safety representative is briefed on their duties and responsibilities. They can:

Participate in any investigations or inspections carried out by the safety officer subject to their agreement, or after notification to the master, undertake similar investigations or inspections themselves, whether or not they have been carried out by the safety officer.

Consult with the master and safety officer on behalf of the crew on matters affecting occupational health and safety of crew members.

Request through the safety committee an investigation by the safety officer of any such safety matter.

Inspect any of the records required to be kept by the safety officer.

Safety Committee

8.1.8 Once the safety officials have been appointed or elected the master is required to appoint a Safety Committee which includes the safety officer and each safety representative. The master is also on the Safety Committee as Chairman and the creation of this committee must be recorded in the Official Log Book. The Safety Committee should meet whenever it chooses, but the Committee should meet regularly, taking into account the pattern of operation of the ship and the arrangement for manning and with sufficient frequency to ensure continuous improvement in safety.

8.1.9 A Safety Committee should:

Ensure that the provisions of the Code of Safe Working Practices, relevant legislation, Marine Guidance Notices and Merchant Shipping Notices are complied with to improve the standard of safety consciousness among the crew.

Make representations and recommendations on behalf of the crew to the company/operator on matters relating to occupational health and safety of the crew.

Ensure the company’s/operator’s occupational health and safety policies are observed and to make recommendations for their improvement.

Inspect any of the records required to be kept by the safety officer and ensure that any conclusions reached on matters of safety are followed up.

8.1.10 There is a legal duty on the company to help the Safety Committee to work and the company must:

Provide access to any necessary safety information, documents, Merchant Shipping Notices, Marine Guidance Notices and relevant Regulations.

Inform the safety officer, safety representatives and safety committee of any hazards on-board the ship known to them, which may endanger the ship or her crew.

Permit occupational health and safety inspections of any accessible part of the ship where crew members may be required to work.

8.2 Master’s Responsibility

It is very important that the master takes a close interest in the work of the safety officials, checking that the safety officer is fulfilling their responsibilities effectively, while giving support and encouragement. The master is the best person to ensure that the safety committee works successfully by encouraging all crew members to participate in the ship’s safety culture.

8.3 Risk Assessments

8.3.1 Masters should ensure that a risk assessment has been carried out to cover all work activities on-board where there is a realistic risk of harm to personnel. Refer to the Code of Safe Working Practices Chapter 1.

8.3.2 The aim of risk assessments is to minimise accidents and ill health on-board. Masters should ensure that not only are risk assessments prepared and kept under review, but work activities are carried out in accordance with the risk assessments.

8.3.3 Many accidents and fatalities could have been prevented if crew members had followed the precautions highlighted in a risk assessment.

An example completed risk assessment is given in Annex 1.

9. Marine Casualty and Marine Incident Reporting

(See MGN 564 (M+F) )

9.1 There is a requirement for the master or operator to report Marine Casualties such as a serious injury or Marine Incidents by the quickest means possible and as soon as possible after the occurrence to the Marine Accident Investigation Branch (MAIB).

Tel +44 (0)23 8023 2527 (Accident Reporting)

Tel +44 (0)23 8039 5500 (General Queries)

Email: [email protected]

All Marine Casualties and Marine Incidents must be notified to the MAIB as soon as practicable by the quickest means available.

Notification must not be delayed until the completion of an internal company investigation.

9.2 Accidents should be reported to the Marine Accident Investigation Branch on form ARF and you should have copies of this form on-board. It can also be downloaded from the Marine Accident Investigation Branch website:

www.maib.gov.uk

10. Medical Stores Requirements

10.1 medical stores.

A full list of medical stores that must be carried is contained in MSN 1905 (M+F) As Amended.

10.2 Person in Charge of Medical Care On-Board Ship

Any person designated to take charge of medical care on-board ship, must have successfully completed an approved Medical Care training programme meeting the standards laid down in STCW Code A-VI/4-2 within the preceding five years. It is a requirement for the master to have also completed this training. They can be the person responsible but if they delegate then the person delegated the duty must also be trained. There should be a record of this delegation.

10.3 Shipowner’s Liability and Financial Security

Financial security must be in place to meet the shipowner’s liabilities in relation to:

• Compensation for occupational illness, injury or death of seafarers on the ship.
• Documentary evidence of this financial security must be held on-board.

11. Surveys and Audits

11.1 surveys.

11.1.1 The surveys required are laid down in REG Code – Common Annexes, Annex N .

11.1.2 Most statutory surveys (Load Line, Safety Construction, MARPOL, Safety Radio etc) are conducted under the Harmonised System of Survey and Certification, detailed in MSN 1751 (M+F) and should be arranged in plenty of time. Annual and periodical/intermediate surveys must be completed within the 6-month window occurring three months before and after the ‘anniversary date’ of the certificate. The ‘anniversary date’ is the day and month of the expiry date of the full-term certificate. A certificate that has not been validated by an annual or a periodical survey within the ‘window’ becomes invalid and the ship risks detention. The vessel’s insurance may become invalid and if registered commercially, the vessel cannot go to sea. If a survey window has been missed, the certificate must be renewed. To do this, the vessel may require a survey to the full scope of a renewal survey.

Renewal surveys must be carried out in the three-month window prior to the expiry of the certificate. It is the master’s responsibility to arrange surveys and maintain validity of certification.

11.1.3 For a renewal Large Yacht Code survey (full 5 years), the following should be undertaken in addition to the annual survey requirements: -

• A lightship check witnessed by MCA surveyor.

Static load test of any lifting appliances.

• Maker’s overhaul of rescue boat davit and winch, followed by

MCA surveyor witnessing 110% operational test.

Radio and nav aids independent survey report.

Retreatment of soft furnishings for fire retardancy, if applicable (every 18 months maximum).

For sailing yachts, a rig report.

11.2 Audits

11.2.1 ISM Safety Management Certificate (SMC), ISSC and MLC audits should be carried out during the same visit. This should be planned well in advance to ensure that there will be sufficient time available to carry out the audits.

Interim Audits

11.2.2 Required at delivery of new yachts over 500GT or where existing yachts change their ISM management company. The management company should contact to arrange this audit.

Initial Audits

11.2.3 Before expiry of the Interim certificate the yacht should be subject to an initial audit. There should be sufficient time (at least 3 months) elapsed since the interim audit to enable the crew to build up evidence to support the full implementation of the Safety Management System on-board.

Intermediate Audits

11.2.4 A 12 month ‘window’ exists (between the 2nd and 3rd anniversary dates of the certificate) in which to arrange intermediate audits.

Renewal Audits

11.2.5 To be completed in the three months prior to the expiry of the Safety Management Certificate. Arrange these early to ensure the certificate does not expire – this would almost certainly result in a major non-conformity and detention of the yacht.

11.2.6 For ISSC audits the Ship Security Plan should be re-submitted three months before the renewal audit for re-approval.

11.3 MLC 2006 Inspections

(See MSN 1848 (M) As Amended)

11.3.1 The ILO Maritime Labour Convention 2006 requires the MCA to inspect seafarer’s working and living conditions within specified time intervals. The requirements apply to United Kingdom registered sea-going vessels involved in commercial activities.

11.3.2 UK registered vessels will be inspected t initial SMC audit at intervals not exceeding 3 years afterwards. This will usually be carried out during an ISM SMC or ISSC audit to minimise the inconvenience to ship-owners and masters or in conjunction with Large Yacht Code surveys for vessels under 500GT. The MCA is also required to investigate if a complaint is received or there is evidence that a ship does not conform to existing legislation in respect of seafarer’s working and living conditions.

11.3.3 After the inspection the surveyor will issue a Report of Inspection of Seafarers Working and Living Conditions to the master and to the Company. If any deficiencies are found these will be reported to the master for rectifying within an agreed time frame.

11.3.4 For yachts holding MLC certification (mandatory for >500GT or voluntarily), there will be a Part I declaration by the MCA which states how we expect a ship to comply with the MLC regulations as well as national regulations we have put in place to ensure compliance. The Part II declaration is made by the Shipowner and details what actions have been taken on-board to ensure compliance with the MLC and national requirements stated in the DMLC Pt I.

For guidance on the completion of the DMLC II refer to the UK Chamber of Shipping guidance and to the appropriate M Notices. See Example of declaration of maritime labour compliance part II .

A DMLC Pt II must be reviewed and approved by the MCA.

11.3.4.1 For yachts under 500GT that do not voluntarily hold an MLC certificate, it is MCA policy for them to complete and submit a DMLC Pt II. It should be noted that whilst vessels under 500GT are not required to be certificated under the MLC, they are required to comply with the MLC in full.

11.3.5 The MLC inspection will generally cover areas such as:

Minimum age of seafarers

Medical certification

Qualifications

Use of R&P services

Hours of work and rest

Manning levels

Accommodation

On-board recreational facilities

Food and catering

H&S and accident prevention

On-board medical care

Payment of wages

Evidence of financial security for providing repatriation and ship owners liabilities.

See MGN 470 (M) for further detail relating to MLC.

12. UK Publications Required to be On-Board

The following UK publications are required to be carried (digital versions of certain Publications may be accepted):

• Official Log Book (MCA)
• Code of Safe Working Practices (MCA) – Sufficient copies to be held on-board to ensure it is accessible to all seafarers.
• Merchant Shipping Notices, Marine Guidance Notes and Marine

Information Notes (may be downloaded from MCA website)

• Charts (corrected up to date) for the intended area of operation
• Mariners’ Handbook (NP100) (UKHO)
• Notices to Mariners (UKHO)
• Notices to Mariners – Annual Summary (UKHO)
• Lists of Radio Signals (GMDSS Ch. V) (NP285) (UKHO)
• Nautical Almanac (UKHO)
• List of Lights +
• Sailing Directions (Pilot Books) +
• Tide tables +
• Tidal Stream Atlases +
• Navigational tables (distant water vessels only) +
• Operating and maintenance instructions for navigational aids carried by the ship
• MCA Ship Captains Medical Guide (Category A and B)
• IAMSAR vol. III
• Declaration of Maritime Labour Compliance Parts 1 and 2
• International Code of Signals (>300GT)

(+ may be included in certain almanacs)

13. Radio Licence

A Ship Radio licence is required even if the transmitting equipment is not in constant use, or if it is used only for distress purposes.

The UK office of communications, Ofcom, is responsible for the effective management of the civil radio spectrum in the United Kingdom.

The regulations governing the use of maritime radio are detailed in the International Radio Regulations, set by the International Telecommunication Union (ITU), and the Wireless Telegraphy Act 2006. It is an offence to install or use any radio equipment on-board a UK vessel without a radio licence.

The Ship Radio licence allows the licensee to install and, if the relevant Maritime Radio Operators Certificate of Competence and Authority to Operate is held, use any combination of maritime radio equipment listed below on a specified vessel: -

• Digital Selective Calling (DSC) equipment associated with the Global

Maritime Distress & Safety System (GMDSS).

MF, HF, VHF equipment.

Satellite communications equipment (Ship Earth Stations).

RADAR. Search and Rescue Radar Transponders (SARTs).

Low powered, on-board maritime UHF communications equipment.

UHF On-board repeater stations.

121.5/123.1 MHz Aeronautical Search and Rescue equipment.

121.5/243 MHz and 406/121.5 MHz Emergency Position Indicating Radio Beacons (EPIRBs) and Personal Locator Beacons (PLBs).

A call sign is allocated to the vessel when first issued with a Ship Radio Licence. It uniquely identifies the vessel within the International Maritime Mobile Service. The call sign remains with the vessel for the duration of its life regardless of changes of ownership or even vessel name. However, the call sign is surrendered if the vessel ceases to be classed as a UK vessel, is destroyed or is unlicensed for a period of two or more years.

A Maritime Mobile Service Identity (MMSI) number uniquely identifies a vessel and is only issued to vessels fitted with Digital Selective Calling (DSC) and/or (Satellite) Ship Earth Station (SES) equipment.

To obtain guidance on on-line/web related applications for Ship Radio and Ship Portable Radio licences, contact:

Spectrum Licensing Ofcom Riverside House 2a Southwark Bridge Road London SE1 9HA

Tel: 020 7981 3131 0300 123 1000 Email: [email protected]

14. Training

14.1 Masters of large yachts are reminded of the requirements to complete training record books for ratings and prospective entry level officers.

14.2 Sea service testimonials will need to be issued, signed by masters, owners or superintendents, to prove experience of crew members higher qualifications or, in the case of officers, revalidating. Examples are given in the annexes of MSN 1859 (M+F) and MSN 1858 (M+F) . It is extremely important that Sea Service Testimonials are completed accurately and in full. Sea Service for seafarers on UK vessels must be verified before being accepted for revalidation, certificate upgrade, etc. MIN 543 (M) [footnote 2] provides information for obtaining sea service verification for seafarers on large yachts.

14.3 All seafarers employed on the yacht, including contractors, must receive safety familiarisation training. The Company should establish and maintain procedures for identifying any training which may be required in support of the safety management system and ensure that such training is provided for all personnel concerned.

14.4 The following training drills (ref. MGN 71 (M) ) are required at the specified intervals:

• Abandon ship – monthly or when 25% personnel change
• Fire Drill – monthly or when 25% personnel change
• Enclosed space entry drill – every two months
• Rescue boat – monthly – includes recovery of person from water
• Davit launched liferaft drill – every four months if fitted
• Security minimum three months as required by Ship Security Plan
• Pollution drills as required by SOPEP and/or Safety Management System.

15. Alcohol and Drugs

15.1 Any level of alcohol or drug consumption by crew members on-board a ship has implications for the safety of the vessel, the crew and any passengers. Even small quantities of alcohol or drugs have been shown to impair judgment and increase the risk of accidents.

15.2 It is an offence for a professional seafarer to be impaired by drink or drugs on-board ship or at any time on-board a vessel if they might be required to undertake emergency duties to protect the safety of passengers.

15.3 The alcohol limits for Seafarers on all UK flagged ships and any ship operating in UK waters are:

Limit STCW Regulation VIII/1 Railways and Transport Safety Act 2003

15.4 More information on alcohol limits is published in MGN 590 (M+F) . The master should instigate and enforce a strict Drug and Alcohol Policy on-board that is clearly referenced in the Seafarer’s Employment Agreement.

MIN 671 (M) expires 30th November 2022, please seek replacement Marine Information Note through the GOV.UK website after this date.  ↩   ↩ 2

MIN 543 (M) expires 28th March 2022, please seek replacement Marine Information Note through the GOV.UK website after this date.  ↩

Is this page useful?

• Yes this page is useful
• No this page is not useful

Help us improve GOV.UK

Don’t include personal or financial information like your National Insurance number or credit card details.

To help us improve GOV.UK, we’d like to know more about your visit today. Please fill in this survey (opens in a new tab) .

Rules for the Charter of Yachts Under 24 Metres under the British Flag

The purpose of this guide is to provide information concerning the flag state rules applicable to British registered yachts of up to 24 metres in Load Line length that are operated for charter.

Any yacht undertaking a charter at sea regardless of its flag is considered to be a vessel that is in use for a commercial purpose and should therefore hold a valid Load Line Certificate and be operated in accordance with the international regulations applicable to a vessel of its physical characteristics and distance of operation from a safe haven.

As an alternative to Load Line certification and compliance with applicable international regulations which would be unachievable for many small vessels the UK Maritime and Coastguard Agency (MCA) have developed a code or practice specifically for vessels of up to 24 metres Load Line length which are engaged at sea in the performance of activities of a commercial nature which includes yachts carrying not more than 12 passengers (i.e. excluding crew).

The UK MCA are an Executive Agency of the UK Government’s Department for Transport holding responsibility and accountability for UK merchant shipping regulations and their enforcement.

The code is known as the Small Commercial Vessel Code of Practice and is published as Marine Guidance Note (MGN) 280 with the full title of ‘Small Vessels in Commercial Use for Sport or Pleasure, Workboats and Pilot Boats – Alternative Construction Standards’.

A copy of the code can be accessed at the following link:

Small Commercial Vessel Code of Practice – MGN 280

The code has been adopted by all members of the Red Ensign Group (REG) which is the collective working party for the shipping registries that comprise the British Register of Ships which includes the UK, the Crown Dependencies (Isle of Man, Guernsey and Jersey) and eight UK Overseas Territories (including the British Virgin Islands and the Cayman Islands).

Any vessel registered in the UK, a Crown Dependency or UK Overseas Territory is a “British ship” and is entitled to fly the Red Ensign. The Red Ensign is the most popular international flag flown by yachts due to its high level of quality, prestige and universal acceptability.

The assimilation of the Load Line convention and international regulations that would otherwise apply to a charter yacht under 24 metres in length carrying no more than 12 passengers in a ‘yacht friendly’ format through the Small Commercial Vessel Code of Practice is just one example of how the British Register of Ships has proactively set out to assist yacht owners with the safe operation of their vessels.

It should be noted that it is not only likely to be an offence to operate a yacht for charter under the red ensign at sea carrying not more than 12 passengers without meeting the requirements of the code but it is also likely that the yacht’s insurance could be invalidated as a result of a failure to operate in accordance with flag state rules.

It should be remembered that the coding of a yacht used for charter is only one stage of the process and that advice should always be taken in respect of local legal and fiscal obligations prior to the commencement of any commercial activity.

Oceanskies in conjunction with our partner surveyors is able to provide a complete charter yacht registration package combining commercial British flag yacht registration under red ensign with coding certification and the employment of crew through Oceanskies Crew Limited in a Maritime Labour Convention (MLC) environment.

Please do not hesitate to contact us for further information.

Yacht Registration

Yacht registries, yacht operation, yacht survey & certification, yacht agents, more information, oceanskies on instagram, oceanskies on twitter, guernsey office.

Oceanskies Limited Castle Emplacement St. Peter Port, Guernsey GY1 1AU Channel Islands, Great Britain

Oceanskies Support Services Limited International House Solent International Business Park George Curl Way Southampton SO18 2RZ Great Britain

Malta Office

Oceanskies (Malta) Limited Premiere Business Centre, Suite 1, Level 2 Constitution Street Mosta MST 1750 Malta

Email Crew: [email protected]

Email Registration: [email protected]

Call: +44 1481 711994

Oceanskies Limited is registered in Guernsey (company number 56102) | Registered Office: Castle Emplacement, St.Peter Port, Guernsey GY1 1AU, Channel Islands, Great Britain

Oceanskies Support Services Limited is registered in the United Kingdom (company number 14539527) | Registered Office: 80 Grove Lane, Holt, Norfolk, United Kingdom, NR25 6ED

Oceanskies Malta Limited is registered in Malta (company number C 77899) | Registered Office: Premiere Business Centre Suite 1, Level 2, Constitution Street, MOSTA, MST 1750, Malta

Terms & Conditions | Privacy Policy

How to choose your yacht’s flag state

One of the most important decisions yacht owners have to make is choosing a flag state ( i.e. country of registry) because this decision will impact the taxes, privacy issues, exposure to liability and freedom to travel. In general, as long as the legal requirements and construction standards are met, yachts can be registered in any country, not just where the owner resides. Most experts agree that the best solution is an offshore registry in countries where the safe fiscal and legal systems offer relatively simple procedures for setting up offshore corporate structures such as Cayman Islands, the Channel Islands or Bermuda. The largest ship registry in the world is Panama, with almost 9,000 ships.

Because of the sometimes prohibitive costs of operating a yacht, charter income programs are an attractive option designed to help reduce operating costs and maintain the vessel in safe conditions. The charter management company takes care of insurance, dockage and maintenance issues, which can reduce the annual operating costs by as much as 70%. Additionally, engines and other systems are used more often and this increases their lifespan.

Sailing under a particular flag can be a complex decision that involves knowledge of international maritime law, so it’s best to consult with a lawyer specialized in these matters. The flag state is authorized to enforce regulations related to periodic inspection, certification, pollution prevention and the number of days per year that the vessel needs to berth in its place of residence.

A good place to start looking for a flag country is the White List maintained by the Paris Memorandum of Understanding on Port State Control (Paris MoU). Flags on this list have a strong performance in the areas of safety, security and environmental protection and are subject to fewer inspections from the port officers. The Paris MoU also maintains Grey and Black Lists, where the risk of ship boarding and detentions is higher.

For reasons related to taxes and safety many owners choose the Cayman Islands, a British Overseas Territory in the Western Caribbean. The Cayman’s flag, known as “Red Ensign” is more popular among large yachts. Other countries flying the Red Ensign and offering similar tax advantages are Bermuda, Anguilla, the British Virgin Islands, Gibraltar, and the Isle of Man. Essentially, these countries offer various benefits for boat owners such as low registration costs, simplified bureaucratic procedures and, in some cases, no taxes. This is especially useful for the residents of the European Union, who can register a yacht under a non-EU flag and operate under a “temporary importation structure” for 18 months without paying taxes or customs fees. The owner can reapply after the 18 months are over.

It’s estimated that about 80% of the total amount of large yachts are currently registered in British Overseas Territories, especially the Cayman Islands and Gibraltar. According to the brokerage and management firm Edmiston Company, the decision to register a yacht in one of these countries is mostly due to their prestige, high standards and adherence to the Large Yacht Commercial Code, availability of a large number of qualified surveyors, protection of British maritime law, consular services and navy and commercial confidentiality .

Marshall Islands, Malta and Liberia are also popular options for large yachts, with construction, inspection and compliance systems in place that make it easier to own and operate large yachts. On the other hand, the US flag is not sought by yacht owners because of the burdensome regulations and numerous requirements that make it very difficult for any ship to be registered.

Considering all the above mentioned, here are the best four countries for yacht registration:

1. Cayman Islands

Renowned for its blue waters and stunning white sand beaches, the Cayman Islands is a British Overseas Territory in the Caribbean Sea, south of Cuba. With a population of only 57,000 people, the territory is made up of three islands: Grand Cayman, Little Cayman, and Cayman Brac. The islands are the fifth largest financial center in the world and its residents have the highest standard of living in the entire Caribbean region. The bank privacy laws and lack of income taxes make it the most popular place to set up companies and subsidiaries. Sailing under the prestigious Red Ensign means that yachts registered in the Cayman Islands can enjoy the privileges of the British flag. Other good options are Jersey, the Isle of Man, Bermuda, Gibraltar, Anguilla and the British Virgin Islands.

2. Marshall Islands

This is a presidential republic in free association with the United States, which provides defense and subsidies. Due to this fact, yacht registry in this region has grown to become the third largest in the world. The number of luxury yachts sailing under the Marshallese flag almost rivals the one in the Cayman Islands. Yacht owners have the option of registering a private yacht under a one-year or a three-year program. Qualified private yachts are allowed to charter in the Marshall Islands up to 84 days a year and are subjected to detailed surveys for lifesaving, safety and firefighting. A minimum safe manning certificate is necessary when chartering. Another advantage is that yachts can be registered while still under construction and can obtain a United States Cruising Permit. All commercial yachts registered in the Marshall Islands are eligible to charter in Europe.

Africa’s first and oldest republic was founded by freed slaves in America who resettled here during the XIX century. Liberia is one of the first tax-free countries in the world, with simple and fast ship registration process. The Liberian Registry – the second largest in the world – includes over 3900 ships. This is an important source of income for the country, generating an estimated $18 million a year. There are no restrictions on crew nationality or country of construction and the Paris MoU puts Liberia on its White List.

The tiny island nation of Malta has a long maritime tradition due to its strategic location and natural harbors. The low registration costs and respectability in this country has resulted in the largest ship registry in Europe, fully compliant with EU regulations. Ships can be registered in the name of companies or citizens, regardless of nationality and there are no restrictions regarding crew nationality, sale or trading. Owners of large yachts are offered attractive incentives such as preferential treatment in certain ports. Additionally, commercial yachts do not pay taxes on any income generated by their operations and are VAT exempt.

As we’ve mentioned above, there are many countries that offer good protection, low taxes and privacy and choosing the right one depends on the particular needs of each yacht owner. You have also the possibility to consult a professional firm specialized on yacht registration that will save you a lot of effort and help you find the best option.

Leave a Comment Cancel Reply

Your email address will not be published. Required fields are marked *