Shipping
Benefits for Ship and Yacht Owners
The Case for Ship Registration in the Isle of Man
- The register is a prestigious, independent, International British Register
- Ships trade worldwide without restriction
- Ships fly the Red Ensign and are entitled to the support of British Consular services and Naval protection
- Flexibility in registered ownership requirements
- Limited Partnerships accepted as registered owners
- All major international conventions have been extended to the Isle of Man
- A Bareboat (Demise) Charter Register is in operation allowing ships to be demise charter registered into or out from the Island
- A one-off low initial registration fee
- There are no Annual Tonnage Taxes
- A flexible approach to manning arrangements is in operation whilst maintaining high standards of competence
- The experience and supportive Marine Administration staff responds rapidly to enquiries and provides sound practical and effective assistance, without undue bureaucratic procedures
- Whilst the Marine Administration surveyors inspect ships prior to acceptance for registration and carry out certain surveys, many surveys are delegated to major classification Societies*
- The Isle of Man Government supports the development of the shipping register
- Political Stability in the Isle of Man is maintained (1000 years of continuous Parliament)
- The Isle of Man is not a Flag of Convenience
- Government sponsorship for trainees to serve on Manx ships
*Changes have now been announced that will simplify registration. These include waiving the survey by an Isle of Man surveyor for vessels under 10 years of age. A new vetting process will establish the suitability of both ship and operator and furthermore, reduce the cost, simplify the process and limit delay at a critical stage. Ownership criteria for Manx vessels will increase under changes and accepted types of vessels will alter to include passenger vessels. The age limit for vessels on entry will also be extended from 15 to 20 years, subject to certain conditions.
Establishing Shipping Operations
- Favourable taxation status is available (the Isle of Man is moving to a zero rate of corporate tax)
- The provision of corporate and trust structures as effective vehicles for ship ownership
- Established support services, e.g. legal, banking, accounting, insurance, corporate.
- The availability of experienced ship managers.
- Professional and support staff available locally.
- The ease in relocating key staff to the Isle of Man.
- An accessible and helpful Ship Registry, which can provide ship owners/managers with direct access to other appropriate Government Departments.
- The Isle of Man has an efficient and well regulated banking and financial system providing beneficial banking and mortgaging facilities
- Modern telecommunications network.
- The Isle of Man is an excellent operating base outside the European Union but physically close to Europe with a compatible time zone - London is only a local telephone call away and a short journey by air with frequent air connections.
- Office accommodation available at reasonable rates.
- A modern and sophisticated legal system based on English law exists.
- The Government's policy provides encouragement and support in promoting the growth of the shipping industry.
- Low levels of personal taxation (standard rate of 10% and generous allowances).
Taxation Situations
The Isle of Man provides a convenient base for ship management operations, which take advantage of the low costs involved in operations from the Island, and also from the beneficial tax legislation that exists.
The Isle of Man is a unique European Centre for International Shipping Business, and in addition, as an international financial centre, can also offer those highly specialised services that are associated with a reputable and dynamic offshore jurisdiction.
The Isle of Man is established as a leading international offshore finance centre, providing a wide variety of quality financial and corporate services.
Complementing its financial services the Island's further diversification and strength have been aided by growth in its international maritime services and shipping register.
Manx Ships - British Flag
Manx registered ships are British Ships. They are, however, under the separate jurisdiction of the Isle of Man Marine Administration.
The majority interest in the ship (i.e. at least 33/64 shares) must be owned by one of the following:
- Companies incorporated in the Isle of Man and having their principal place of business in the Isle of Man. (There are no nationality requirements for ownership of such companies)
- Companies incorporated in the United Kingdom, Channel Islands, any British Dependent Territory and having their principal place of business in any such territory
- Companies incorporated in member states of the European Union and European Economic Area Countries and having their principal place of business in any such country. It should be noted that the company may be incorporated in any of the above territories or member states and have its principal place of business in any other of the above territories or member states
- Limited Partnerships established and registered in the Isle of Man in accordance with the Partnership 1909 and the International Business Act 1994, and in certain prescribed countries as detailed in the Registry Advice Notice No 2
British Dependent Territories
Anguilla
Bermuda
British Antarctic Territory
British Indian Ocean Territory
Cayman Islands
Falkland Islands
Gibraltar
Montserrat
Pitcairn Islands
St Helena and Dependencies
Turks and Caicos Islands
Virgin Islands (British)
Member States of the European Union and European Economic Area Countries
Austria
Belgium
Cyprus
Czech Republic
Denmark
Eire
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Italy
Latvia
Liechtenstein
Lithuania
Luxembourg
Malta
Netherlands
Norway
Poland
Portugal
Slovakia
Slovenia
Spain
Sweden
United Kingdom
In 2007, the Isle of Man introduced legislation to extend the number of countries accepted for ownership of Manx vessels. Previously constrained to UK/EU/EEA/British Dependent Territories, the list has now been extended to include: Australia, the Bahamas, Canada, China, Hong Kong, India, Japan, Liberia, Marshall Islands, New Zealand, Pakistan, Panama, Russia, Singapore, South Africa, United Arab Emirates and the USA. This allows ownership structures of vessels using companies registered in the above countries to remain unchanged when vessels transfer registration to the Isle of Man, thus providing a smoother transition.
Bareboat Charter Registration
Introduced in 1991, whereby a ship owner can Demise Charter register a vessel both in and out of the Isle of Man and so separate the financial and operation jurisdictions.
Demise Charter Registration provides a more flexible and attractive package, eg:
- Mortgaging facilities
- Manning requirements
- National laws may permit tax advantages
A ship owner may still be able to obtain subsidies if the owner of the vessel remains in the original state although the vessel may be 'flagged out' to another registry.
Demise Charter Registration is only possible between the Isle of Man and 'Compatible Registries', i.e. those states whose national law permits such arrangements. The maximum registration period is five years, but this can be renewed for a further period. Vessels registered in the Isle of Man in this manner comply with all regulations (other than ownership nationality) as if they were on the main Isle of Man register.