Forming/using a Delaware company for boat ownership

Tranona said:
Think you are getting confused with registration and ownership. Delaware registration is not an internationally recognised as the only one from the IS is the official Coastguard flag. However some states do recognise it including Turkey and it is widely used there because of the tax implications of being on the Turkish register. Also used by some whose state does not have a private craft register like Israel. To get a Delaware flag the boat needs to be owned by a Delaware company, which of course is offshore.

I do not see any advantage for you to have a Delaware company if you are going to have it registered in the CIs. As for TA into the EU the boat must be owned by a non EU resident which I believe you are.. So, just buy the boat personally or through a non EU (could be CIs if that suits your financial situation) and register it in Guernsey or indeed in the UK.
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I don't think I'm confusing anything. Delaware ownership and registration is accepted in the EU as well as Türkiye. It's a simple enough process. If I eventually change to UK or Jersey registration I would transfer ownership back to personal ownership. The immediate attraction of Delaware is that it's fast both for company formation and yacht registration.
 
westernman said:
I will add than many (may be even most?) registries require the owner (company or person) to be resident in the flag state.
The UK Part I and Polish registries do not.
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Entitlement to register a boat generally has a citizenship requirement rather than a residence requirement.
 
Spirit (of Glenans) said:
But he is talking about setting up a Delaware LLC as a vehicle with which to buy the boat.
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That's correct. I'm talking about setting up an LLC in Delaware which will own the boat and register it in Delaware. I believe it can all be done online relatively quickly and at small cost. The company would have to file annual returns and, as a non trading company, pay a fixed annual tax amount of [I think] $300.
I was simply asking if anyone else had done this and could offer any pointers. We do seem to have gone of track somewhat.
 
Irish Rover said:
I don't think I'm confusing anything. Delaware ownership and registration is accepted in the EU as well as Türkiye. It's a simple enough process. If I eventually change to UK or Jersey registration I would transfer ownership back to personal ownership. The immediate attraction of Delaware is that it's fast both for company formation and yacht registration.
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OK I understand from the convenience point of view, but if you are able to get the tonnage survey done with the pre purchase as I suggested on your other thread there will be no delay with a UK/CI registration.
 
Irish Rover said:
I would have thought an EU citizen would be entitled to register a boat in any EU country? Maybe that's wrong?
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No .. not correct.

But an EU registered boat can stay in any EU location ....

OK - my own experience.

My boat was registered in UK - I live in Latvia. I had my Mother living in UK as well as a Holiday Home in UK. Registry was fine.

My Mother passed away and I sold my Holiday Home shortly after - when I went to renew Registry - refused. I could not provide proof of living / residing in UK such as utility bills and verified address. Note - I am a British Citizen, Passport holder, born in England with right of abode in UK. I considered using my Sons address - but then that could create problem of Community Charge etc.
I accepted to register in Latvia. I have Latvian permanent Residence Permit - which allowed me to do so. (In fact its better than UK registry as its a one-time fee and for life AND states me as OWNER - as well as keeper !!).

OK Offshore Co.

I am a business owner and until 1 month ago - maintained an offshore Company. This Co being necessary to do business in the international Petroleum Market. But that's another matter. It was intended that assets and various would come under it LEGALLY to reduce costs and overheads. With tightening of various Govts particularly USA - this became increasingly difficult and bank accounts closing / refusing to accept offshore registrants etc.
I got so fed up with the whole affair - even though I had a reputable recognised Offshore Company Agent assisting / advising - I decided enough was enough.
When the LLC was set up - information was listed as start up ... maintenance ... and if needed shut down costs. Finally when decision was made to shut it down ..... the cost was far higher than originally listed. Plus extras started popping up ...
Luckily I had not put too many assets under its umbrella and therefore managed to avoid too much tax and penalties in transfers.

OK - final item : Its very easy to set up an 'Offshore LLC' .... BUT wait till you want to give it a Bank Account. Cheap or no fee startup accounts are very few and have serious restrictions. Those that require a start up fee often require a standing significant balance to be maintained on account.

I wish all the Best Luck to Irish Rover .. honest .... but I do suggest dig deeper into it ..... I would assume that most boats you see as Delaware Reg'd have been for some time .. when it was easier .... Today things are getting tighter and tighter .....

In Latvia - any person or business that transacts with offshore pays 'black money' penalty tax ... and this can be up to +100% !!! That's EU for you.
 
@Refueler I'm sorry to hear snout your troubles and travails.
Your experience with UK registration is very understandable. You were trying to continue on the SSR which is only open to UK residents. You could of course have registered on UK Part 1.
Most banks and governments authorities are not comfortable dealing with offshore trading companies and who can blame them. What I'm proposing is a non trading company which will have no need for a bank account or facilities. Very much a different animal, I think you'd agree.
As regards your "no .. not correct" I'm not doubting you but could you give an example or two of EU countries where EU citizens are not entitled to register a boat. Just to satisfy my curiosity, you'll understand.
 
As regards your "no .. not correct" I'm not doubting you but could you give an example or two of EU countries where EU citizens are not entitled to register a boat. Just to satisfy my curiosity, you'll understand. {/quote]

Most countries regardless of EU or other connection require owner to be a Resident of the country desired for register.

Pt1 in UK is a different ball game .... I could have registered - but I am not going to pay for a Yacht Surveyor accepted by Pt1 to come and inspect my boat ... we have no such person here in Latvia. I own Marine Survey Co's .... covered Yachts for may years in UK and other locations .... but I cannot inspect own yacht for Pt 1.
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Irish Rover said:
As regards your "no .. not correct" I'm not doubting you but could you give an example or two of EU countries where EU citizens are not entitled to register a boat. Just to satisfy my curiosity, you'll understand.
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Two countries of which I have first hand experience - France and Belgium.
In both cases you need to be either a national or a resident. And as a resident it does not matter whether you're an EU national or not. And 'resident' can also mean a corporate entity.
Just being an EU national however, does not entitle you to register a boat there.
 
Irish Rover said:
I would have thought an EU citizen would be entitled to register a boat in any EU country? Maybe that's wrong?
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No. Boat registration is nothing to do with the EU (not a "competence") and each flag state under international law sets its own rules. For example UK SSR is based on residence Part 1 is open. Registration systems can also have other uses, for example title registration, domestic tax monitoring and collection, determination of equipment and crewing. For moving around international waters and state territorial waters evidence is required of flag state.

Poland as i understand it is an "open" register (as is San Marino) hence its popularity with those who have difficulty in using their "normal" register, for example UK citizens who do not reside in the UK therefore cannot use the SSR and do not wish (or can't) use Part 1 for example because they don't have evidence of title or are not prepared to pay the cost.
 
@Refueler
I just asked you to give an example of 1 or 2 EU countries - @Koeketiene has obliged, thanks. I have to say I'm surprised but c'est la vie.
As regards UK Part 1 the surveyor is not to "inspect" your boat. It's to measure and certify tonnage which by the way has nothing to do with the weight.
 
I've had a further look online and forming a Delaware LLC and arranging boat registration looks straightforward enough - even for me.
Thanks for all your input, guys.
 
Irish Rover said:
@Refueler
I just asked you to give an example of 1 or 2 EU countries - @Koeketiene has obliged, thanks. I have to say I'm surprised but c'est la vie.
As regards UK Part 1 the surveyor is not to "inspect" your boat. It's to measure and certify tonnage which by the way has nothing to do with the weight.
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I am well aware of what Surveyor does ... I own 3 bl**** survey companys !! I could bore you to tears about the different Tonnages and what they are in the Marine world.

I also did not need to 'name' countries as I gave example of my own Latvian registration and a simple Google by yourself would throw up answers.

Does no-one actually search for info nowadays ??
 
Refueler said:
I am well aware of what Surveyor does ... I own 3 bl**** survey companys !! I could bore you to tears about the different Tonnages and what they are in the Marine world.

I also did not need to 'name' countries as I gave example of my own Latvian registration and a simple Google by yourself would throw up answers.

Does no-one actually search for info nowadays ??
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Calm down, my friend. You'll do yourself a mischief. You wouldn't happen to own a Delaware LLC I could borrow for a few months, would you.
 
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