Right now, Bermuda is proud to have more than 300 ships and yachts in its maritime registry. Among them, there are 114 important commercial ships and 205 luxurious yachts, making a total of 130 million tons altogether. The commercial ships under the Bermuda flag include cruise liners, passenger ships, cargo carriers, LNG tankers, gas carriers, bulk carriers, and other vessels used in the offshore oil and gas industry, like platforms. Bermuda is home to some of the world’s first passenger ships that meet very strict safety requirements, ensuring a safe return to port. This makes us wonder: what makes Bermuda so popular among shipowners from all over the world?
Ship and yacht registration under the Bermuda flag
The Bermuda Islands, classified as an overseas territory of the United Kingdom, boast a distinctive autonomy with their own parliament and legal system. Ships and yachts under the Bermuda flag are bound by the international maritime conventions set forth by the UK, ensuring adherence to established standards. Bermuda has strong laws for businesses and ships, which attracts companies in the shipping industry.
Bermuda is also popular for allowing exempted businesses involved in global trade, catching the attention of many well-known shipping companies that want to establish themselves on the island.
To have a ship or yacht officially registered under the Bermuda flag, the controlling shares of the company shall be held by an individual entitled to do so under the Bermuda Merchant Shipping Act 2002, amended by the Merchant Shipping (Miscellaneous) Act 2004 (collectively referred to as the Bermuda Shipping Act).
To own a ship or yacht under the Bermuda flag, you shall meet the criteria listed in the Bermuda Shipping Act. Here are the eligible shipowner groups:
- British citizens
- residents and nationals of British Overseas Territories
- companies registered in Bermuda, the United Kingdom, or any British Overseas Territory
- companies registered in any country within the European Economic Area
- companies registered in specific other countries that are qualified for ship ownership.
Lately, the Bermuda Islands have changed their rules for ship and yacht registration, allowing more countries to qualify for flying the Bermuda flag. This means that now, a greater number of ships and yachts from various nations can be registered under this special flag. Below, you will find the list of countries eligible for registration:
- Australia
- Bahamas
- Canada
- China
- Hong Kong
- India
- Japan
- Liberia
- Marshall Islands
- Monaco
- New Zealand
- Panama
- Singapore
- South Africa
- South Korea
- Switzerland
- United Arab Emirates
- United States of America.
If a ship or yacht is registered under the Bermuda flag and its owner is a company controlled by someone who doesn’t live in Bermuda, they shall choose a local representative known as an authorized officer.
The above authorized officer can be either a person who lives in Bermuda or a company registered on the island with its main operations there. A non-resident owner needs to appoint the said authorized officer before applying for registration and must keep them in this role as long as the ship or yacht stays registered under the Bermuda flag. The Bermuda Shipping Act explains the responsibilities and authority of the representative.
How to register your ship or yacht under the Bermuda flag
To start the registration process, you’ll need to collect all the essential paperwork:
- fully filled-out registration form
- copy of the bill of sale in the owner’s name
- customs documents confirming the vessel’s presence in Bermuda
- identification papers
- documents validating the appointment of the authorized officer
- Builder’s Certificate (Certificate from the manufacturer)
- Certificate of Deletion from the previous registry, if the ship or yacht was previously registered
- original Certificate of Incorporation for the company that owns the ship or yacht.
Additionally, it’s very important to obtain a special document called the Carving and Marking Note. The latter verifies the correct display of the vessel’s information and name, adhering to the regulations of the Merchant Shipping Act. The verification is the responsibility of a British Consul Surveyor.
By the way, if your yacht is up to 13.7 meters long, you are allowed to verify the accuracy on your own.
When you submit your registration documents to the Bermuda registration authority, be sure to include the Carving and Marking Note and photos of the vessel. Also, remember to pay the required fee.
Class A, motorized vessels:
- Vessels up to 12 feet in length: USD 40.
- Vessels longer than 12 feet: USD 40 plus an additional USD 4.50 for each extra foot beyond 12.
Class B, non-motorized vessels:
- Vessels without a motor, up to 16 feet in length: USD 10.
- Vessels without a motor, propelled by oars or paddles, regardless of length: USD 10.
You will receive the Vessel Registration Certificate within 3 to 4 days.
Make sure all the documents are in English. If any were issued outside the UK, such documents shall be apostilled.
Registry of ships and yachts in Bermuda
Although the Bermuda Ship Registry is in Hamilton, they have a team of skilled surveyors in the United Kingdom, Croatia, and Spain. These experts are available to inspect and audit ships and yachts whenever needed. Included in the prestigious UK Category 1 registries, the Bermuda Ship Registry allows you to register ships and yachts of all types and sizes.
When you register a ship or yacht under the Bermuda flag, the registry charges an annual fee based on the ship’s size, and there’s an extra hourly fee for surveyor services. You can submit registration data at any time since the registry operates 24/7, all year long. They also have a hotline available around the clock to promptly help users.
The Bermuda Ship Registry has been around since 1789 and has gained international recognition, especially since 1980, remaining popular ever since.
Why it makes perfect sense to register your ship or yacht under the Bermuda flag
The Bermuda flag, also known as the Red Duster, is highly respected for the safety and quality at sea that it symbolizes. Considered prestigious, it is on the White List of the Paris Memorandum of Understanding.
When yacht owners register their vessels under the Bermuda flag, they don’t have to pay sales or corporate taxes in Bermuda. The registration process is easy and clear, with only small fees to pay.
Moreover, yacht owners may apply to the British consulate for protection, and their yachts are protected by British common law.
By registering their yachts at any of the Caribbean’s yacht centers, owners get access to the expertise of skilled professionals from the UK Maritime and Coastguard Agency.
Bermuda is attractive for its favorable tax environment, political stability, reliable British laws, and ease of registering yachts for either personal use or charter purposes.
The Bermuda Ship Registry is part of the respected Red Ensign group, which includes the Isle of Man, Gibraltar, the Cayman Islands, and the United Kingdom. They provide excellent ship and yacht registration services for discerning clients.
Unlike buying a car, purchasing a yacht is an international investment. So, it’s essential to seek professional advice when you are about to choose the right country for yacht registration. Feel free to contact Q Wealth experts for help if you need it!
28 July 2023 