Why Are So Many Yachts Registered In Cayman Islands?

The Cayman Islands are the world’s leading yacht registry, with over 45% of the global superyacht fleet on its flag. Registering your vessel in the Cayman Islands grants protection and assistance from the UK Royal Navy regardless of location, as well as full British Consular services for all Cayman flagged vessels. The Cayman Islands Shipping Registry (CISR) is part of the Red Ensign Group, which includes the United Kingdom and Commonwealth countries, Category 1. The Cayman Islands are recognized as the premier offshore jurisdiction to register superyachts, holding 15% of yachts over 30m in the world.

The Merchant Shipping Law, revised in 2016, is the governing legislation for all boats registered in the Cayman Islands. The law offers various types of yacht registration, including full registration and interim registration. The Cayman Islands have a stable political and economic environment, making them a safe and reliable jurisdiction for yacht registration.

One of the main reasons people register their vessels in the Cayman Islands is to prove their nationality, secure title to a yacht, and secure title to a pleasure yacht. Yachts registered with the Cayman Islands as pleasure yachts and not engaged in trade are granted a License to Cruise the water of the United Kingdom.

The Cayman Islands accept private pleasure yachts and commercial yachts of any size that are based and operated anywhere in the world. Many choose to register their vessels in the Cayman Islands for international recognition, tax neutrality, a wide range of ownership structures, and more. One of the main reasons people register their vessels in the Cayman Islands is due to the fact that it is a Red Ensign flag and as a British ship.

Why register your yacht in the Cayman Islands?

Tax Benefits. One of the main advantages of registering a superyacht in the Cayman Islands is the favorable tax regime. The islands have no income, capital gains, or inheritance taxes, and there are no restrictions on foreign ownership. Moreover, the Cayman Islands offer a range of tax-efficient structures for yacht ownership, such as exempted companies, limited partnerships, and trusts. These structures can help yacht owners to minimize their tax liabilities and optimize their financial planning.

Efficient Registration Process. The Cayman Islands have a streamlined and efficient registration process for superyachts. The registration is handled by the Cayman Islands Shipping Registry, which is a Category 1 member of the Red Ensign Group. This means that the registry is authorized to register yachts of any size and type, and it adheres to the highest international standards of safety and quality. The registration process can be completed in a few days, and it involves minimal paperwork and formalities.

World-Class Infrastructure. The Cayman Islands have a world-class infrastructure for superyachts, with modern marinas, ports, and facilities. The islands are strategically located in the heart of the Caribbean, and they offer easy access to the main yachting destinations in the region. The Grand Cayman Island, which is the largest of the three islands, has several marinas that can accommodate superyachts of up to 100 meters in length. These marinas offer a range of services and amenities, such as fueling, provisioning, maintenance, and repairs.

Why are so many companies registered in Cayman Islands?

English Is the Official Language. English is the official language in the Cayman Islands. The laws and legal systems are based on the British system. Because of its strong links with the UK, the country is totally stable and safe politically. This makes it an ideal place to setup a business. All documents and legislations in the Cayman Islands are in English.

Run Your Business from Anywhere in the World. When an investor sets up a business in the Cayman Islands, they do not necessarily need to be living in the country to run the business. In fact, one of the biggest benefits is being able to run the business from anywhere in the world that they may be located in.

Tax Efficient. The Cayman Islands has an efficient tax system and a respectable jurisdiction as to the incorporation of offshore companies. Other taxation benefits include:

Why do business register in Cayman Islands?

One of several benefits of opening business in the CaymanIslands includes there are no direct taxations. Business owners in the Cayman Islands will not have to pay either corporate or personal income taxes while they are also free of taxes on gains and profits from investments. In addition, there is also no property tax. These benefits make the Cayman Islands an attractive place to set up a business.

Accessible location and qualified human resources. With a convenient location in the Caribbean, it is quite easy to travel to the US, UK, Canada, and other parts of the world. This is a huge benefit for businesses in the Cayman islands to exchange commodities, go on business trips, and conduct other trading activities.

Business in the Cayman Islands also gains additional advantages of recruiting a highly educated workforce. Since English is the official language, it would be easier for international companies to set up here. Also, a multicultural workplace could be formed as many people residing in the Cayman Islands are of different nationalities.

Why register a boat in the Cayman Islands?

There are no income, capital gains, or other taxes in place by the Cayman Islands on vessel owning companies. The Cayman Islands Shipping Registry is a favorite among people who own both pleasure and commercial yachts worldwide. This ship registry has been at the Port of George Town, Cayman Islands since 1903.

For the person who has successfully opened an offshore bank account, got a second passport and is living the lifestyle of their dreams traveling the world, the time has come to move on to the next level of flag theory.This new level is one where the focus shifts from acquisitions that are largely for diversification purposes toward purchases meant purely to improve your lifestyle– like boating.

For many who reach this stage, the next step is to combine travel and leisure by investing in the purchase of a yacht.

Unlike buying a new car – or even a house – buying a yacht is an investment of an international nature, and deciding upon the best country for yacht registration is a decision for which you need professional advice so you do not expose your assets to unnecessary taxes and liabilities. If you go into the process uneducated, your exciting new purchase might just become nothing more than a hole in the water into which you pour unnecessary amounts of money.

Is Cayman Islands blacklisted?

As a consequence of this move, on 18 January 2024, the EU updated its own ‘blacklist’ of high risk third countries for AML/CTF purposes and – as expected – Cayman has been removed from that, too.

How much does it cost to register a yacht in Cayman Islands?

Register Your Yacht In The Cayman Islands from $1499 The Cayman Islands enjoy a rich seafaring heritage. The Cayman Islands Shipping Registry (CISR) is part of the Red Ensign Group of Category One British registries comprising: Bermuda, Cayman Islands, Gibraltar, Isle of Man and the UK.

You can register yacht as an individual owner or as a company owned vessel in the Cayman Islands. If you are a citizen of the list below, you do not need to setup a Cayman company for the ownership of your vessel. However, most clients prefer to setup thru a company owned structure as it is a way to avoid liability issues.

Citizens and companies from countries listed in the following table are able to register in the Cayman Islands directly in their own name:

PRICES FOR CAYMAN BOAT REGISTRATION The prices for the registration depend on the tonnage of your vessel and if you are registering the ownership of the vessel as a PRIVATE or CORPORATE owned vessel.

Why are so many ships registered in the Cayman Islands?

The Cayman Islands is recognised as one of the most prestigious maritime flag states internationally and is a popular and attractive base for the registration of foreign owned vessels. One of the main reasons that people register their vessels in the Cayman Islands, is due to the fact that it is a Red Ensign flag and as a British ship the vessel comes under the protection of the British Royal Navy. For Cayman flagged vessels full British Consular and Royal Navy assistance and protection are available worldwide. Cayman is a category 1 British Registry, affording Cayman registered vessels all the privileges that accompany the British Flag, along with full international recognition.

Additionally, a wide range of ownership structures is available to facilitate flagging a vessel in Cayman, and it is not always necessary for a Cayman Islands flagged vessel to be owned by a Cayman Islands individual or entity. Moreover, there are few restrictions on crew nationality for Cayman flagged vessels. You can register your vessel in the Cayman Islands as a private individual or as corporate owner and there are options to register the vessel for personal use, commercial use or as merchant ship.

• The Cayman Islands Shipping Registry Offers 5 Types Of Registration For Your Vessel:. Full registration
• Provisional registration
• Interim registration
• Under Construction registration
• Bareboat Charter

Why is Cayman Island so rich?

The Cayman Islands is considered to be part of the geographic Western Caribbean zone as well as the Greater Antilles. The territory is a major offshore financial centre for international businesses and wealthy individuals, largely as a result of the state not charging taxes on any income earned or stored.

With a GDP per capita of US$109,684 the Cayman Islands has the highest standard of living in the Caribbean, and one of the highest in the world. Immigrants from over 140 countries and territories reside in the Cayman Islands.

As of 2017, no evidence has been found that the islands had been occupied before their discovery by Europeans. The Cayman Islands got their name from the word for crocodile (caiman) in the language of the Arawak-Taíno people. It is believed that the first European to sight the islands was Christopher Columbus, on 10 May 1503, during his final voyage to the Americas. He named them “Las Tortugas”, after the large number of turtles found there (which were soon hunted to near-extinction).

Is it illegal to have a company in the Cayman Islands?

Registering a company In the Cayman Islands any one or more persons may by subscribing their name to a company memorandum incorporate a company for a lawful purpose. In practice, companies are almost invariably formed by professional trust companies rather than members of the public.

Cayman Islands company law is primarily codified in the Companies Law (2018 Revision) and the Limited Liability Companies Law, 2016, and to a lesser extent in the Securities and Investment Business Law (2015 Revision). The Cayman Islands is a leading offshore financial centre (also known as a tax haven), and financial services form a significant part of the economy of the Cayman Islands. Accordingly company law forms a much more prominent part of the law of the Cayman Islands than might otherwise be expected.

There are broadly two types of company in the Cayman Islands.

The first, and more prevalent, are companies formed under the Companies Law (2013 Revision). Such companies may be formed as ordinary resident companies, ordinary non-resident companies, exempted companies, exempted limited duration companies (LDC) or special economic zone companies (SEZ).

Why are yachts flagged in the Cayman Islands?

The Cayman Islands is a jurisdiction of choice for offshore vessel registration for many reasons, the most popular of which being the tax benefits. As a tax-neutral jurisdiction, yacht owners registered in the Cayman Islands can save thousands in fees related to taxes, registration, and VAT alone. The Cayman Islands also offers convenient ease of marine vessel access with three ports of registry and several marinas across the three islands.

Another benefit of registering vessels in the Cayman Islands is that they are considered British vessels and are therefore protected by the British Royal Navy. Furthermore, these vessels fall under the Category 1 British Registry within the Red Ensign Group. This is considered a first-class flag and one of the top flags in the world by the International Chamber of Shipping (ICS). Vessels registered under CISR also benefit from its whitelist and low-risk status at all major ports worldwide, and with 15 global locations yacht owners are afforded 24/7 support. CISR-registered vessels can also participate in the International Maritime Organization (IMO) using the British status of their vessel.

Yacht owners registered in the Cayman Islands also benefit from considerably fewer inspections, less hassle, more support, and smoother sailing…no pun intended.

The Cayman Islands has set itself above other tax-free locations such as Malta, Singapore, and Cyprus by offering yacht owners and shipping companies a genuine physical presence in which to place their staff in turnkey offices and generate legitimate tax-free international business income. This is accomplished through Cayman Maritime & Aviation City, a component of Cayman Enterprise City (CEC) set up specifically for businesses within the maritime industry so they can take advantage of the benefits offer by operating from the award-winning Special Economic Zone. The Cayman Islands Government has granted appealing concessions to such companies.

Why are companies domiciled in the Cayman Islands?

• A tax haven is any jurisdiction with very favorable tax laws and privacy protections for investors.
• The Cayman Islands don’t have acorporate tax and act as a haven formultinational corporationsto shield some or all of their incomes from taxation.
• The Cayman Islands do not impose taxes on residents and are considered tax-neutral.

Understanding a Tax Haven. A tax haven is any location with lenient or non-existent tax laws. There are numerous tax havens around the globe, including Switzerland, the British Virgin Islands, Bermuda, and Singapore. The specific tax laws in each location vary. While some simply tax income at lower rates, while others have virtually no taxes. The British Virgin Islands has no corporate tax,estate tax,inheritance tax,gift tax,orsales tax and an effective income tax rate of zero.

Without tax income, the Caymans earn revenue via fees related to tourism and work permits, financial transactions, and import duties. Duty taxes are levied on most goods imported to the Caymans at a rate of 22%. Some items, such as baby formula, are exempt from duty taxes, while other goods such as automobiles are taxed at a higher rate based on the value of the vehicle. For expensive cars, the duty tax rate can be as high as 42%.

What are the disadvantages of incorporating in the Cayman Islands?

Cayman Islands10 Disadvantages of Setting up a Cayman Islands CompanyDue Diligence:Difficulty of Proving Ownership:Exposure to Taxation:Higher Cost of Living:Challenging and Longer Process to open a Corporate Bank Account:Attract Additional Scrutiny:Not Good Conduit Vehicles:

Tax haven jurisdiction might seem like an ideal place for you to start your businesses because of the exemption of taxes. However, with that, there are some underlying disadvantages as well. In this article, our team at Tetra Consultants has highlighted 10 disadvantages of setting up a Cayman Islands company which may help with your decision to register company in Cayman Islands.

Higher Fees:. The annual maintenance fee of a minimum $1100 to the Government in Cayman Island is higher than other offshore centres in the Caribbean. Companies are also required to keep accounts which are additional costs to the business.

It is noted that filing fees in the Cayman Islands are significantly higher than in other countries.In addition, experts expect the filing fees, import duties, work permit fees, registration fees and other costs to also gradually increase over time.