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A Firm

Foundation

10 May 2023

Last revised

minutes

5

Reading time

Many of our Members will already be familiar with the reasoning behind corporate ownership and the use of trusts. If that’s you, then feel free to skip to the next step of building your team. Too many buyers, however, still purchase in their own names. As well as raising privacy concerns, legal owners can be held liable for accidents and regulatory non-compliance. Corporate services aren’t cheap, but it’s a sensible choice when building and owning a large yacht.

minutes

5

Reading time

10 May 2023

Last revised

Many of our Members will already be familiar with the reasoning behind corporate ownership and the use of trusts. If that’s you, then feel free to skip to the next step of building your team. Too many buyers, however, still purchase in their own names. As well as raising privacy concerns, legal owners can be held liable for accidents and regulatory non-compliance. Corporate services aren’t cheap, but it’s a sensible choice when building and owning a large yacht.

  • Companies have a seperate legal personality, which allows companies to buy and sell goods and services like people.

  • Trusts are arrangements where property is held by a trustee for the benefit of a beneficiary, sometimes with the same person as the settlor and beneficiary.

  • Companies and trusts can be used to protect assets, reduce tax exposure, and shield personal wealth.

  • Yachts can be owned through companies to ring-fence liability and protect other assets of the owner.

  • Yachts can still be arrested in cases of accidents, pollution allegations, or unpaid debts.

  • Releasing a yacht release from arrest requires payment of the claim or providing acceptable security, often requiring a personal guarantee from the beneficial owner.

  • Lifting the corporate veil may expose individuals involved in fraudulent or tax evasion.

  • The use of nominees can help to protect the identity of real directors and shareholders.

  • Privacy is not guaranteed, as international treaties and conventions may override privacy laws, and trusts aren't always recognized.

  • Offshore jurisdictions offer tax-efficient and legal ways for multinational companies and yacht owners, but careful consideration of jurisdiction is essential for reputation, integrity, costs, rule of law, political stability, and practicalities of winding-up corporate structures.

  • Releasing a yacht release from arrest requires payment of the claim or providing acceptable security, often requiring a personal guarantee from the beneficial owner.

  • Lifting the corporate veil may expose individuals involved in fraudulent or tax evasion.

  • The use of nominees can help to protect the identity of real directors and shareholders.

  • Privacy is not guaranteed, as international treaties and conventions may override privacy laws, and trusts aren't always recognized.

  • Offshore jurisdictions offer tax-efficient and legal ways for multinational companies and yacht owners, but careful consideration of jurisdiction is essential for reputation, integrity, costs, rule of law, political stability, and practicalities of winding-up corporate structures.