BVI Ship Registration
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1 BVI Ship Registration Introduction Road Harbour in the British Virgin Islands ("BVI") is a British Port of Registry and all ships registered here are designated British ships and fly the BVI Marine Ensign (British Red Ensign with the BVI crest). The BVI is amongst a select group of Caribbean destinations that enjoy the benefits of being part of the United Kingdom's Red Ensign Group of Registries and are now recognised worldwide as having an international Category 1 ship registry operating to the highest standards of a British Port of Registry. This is as a result of similar British Merchant Shipping legislation and the adoption of standards applicable to United Kingdom ships enforced under the International Maritime Organisation Conventions for: 1. loadline (1966); 2. tonnage (1969); 3. MARPOL (International Convention for the Prevention of Pollution from Ships) (1973 and 1978 Protocol); 4. SOLAS (Safety of Life at Sea) 1974 and 1978; 5. ILO (International Labour Organization) (92 and 133) for Crew Accommodation; and 6. STCW (International Convention on Standards of Training, Certification and Watchkeeping for Seafarers) (1978) (adoption of which is in process). Leading international banks are no strangers to undertaking the financing of yachts, whether under construction or already built, owned by BVI companies. The BVI are now able to provide ship owners with an internationally accepted registry as an alternative venue to Bermuda, Isle of Man and Hong Kong; and the advantages of registering as a British ship in the BVI are coupled with low fees and fiscal planning advantages. Advantages of the BVI ship registry 1. Ships flying the Red Ensign, such as BVI registered ships, are entitled to British Diplomatic/Consular support and Royal Navy protection. BVI has access to the range of technical expertise of the UK Maritime and Coastguard Agency. 2. Low initial registration and annual renewal fees. 3. Internationally accepted yacht registration and certificates BVI is not a flag of convenience. 4. Availability of provisional registration to meet varying circumstances.
2 Page 2 5. Simple and secure registration of ship mortgages, discharge of mortgages, change/transfer of ownership and other proprietary interests and services. 6. Reasonable ownership qualifications (including ownership by a BVI company). 7. Full corporate, legal, telecommunications and courier services readily available in the BVI. 8. Political and social stability in BVI and British judicial system. 9. Prompt, courteous and efficient service and fully computerized fleet management system and database. 10. Convenient berths, accommodation, supplies and dock side services if planning to sail in BVI waters. 11. BVI is recognised worldwide as a reputable international financial centre, and one of the world leaders in company formation and related corporate services. Ownership through a BVI company For a ship to be registered in the BVI as a British ship, it must be owned as to at least a majority by a "qualified person". Given BVI's international reputation as a jurisdiction of choice for the domiciling of international companies, clients invariably form a BVI business company for the purpose of owning BVI registered yachts (as well as yachts registered elsewhere). However, it is possible for other persons, both corporate and individuals, to also qualify to own a BVI registered ship. So, for example, citizens and/or bodies corporate registered in the United Kingdom and its crown dependencies and overseas territories also qualify. Also qualifying are nationals of, overseas territories of, and bodies corporate incorporated in, member states of the European Community ("EC") or European Economic Area ("EEA"), although bodies corporate must have a place of business in such member state or overseas territory. Bodies Corporate Incorporated in a Member State of the Caribbean Community (CARICOM) or the Organization of Eastern Caribbean States (OECS) and registered in the BVI also qualify to own a BVI registered vessel. Registration procedure The following is a brief outline of the general steps to complete the registration procedure. Approval of name SR Approval of a ship's name must be applied for on Form SR101-01, or by way of letter, submitted to the Registrar of Ships in the BVI (the "Registrar"), who will approve or decline the proposed name in accordance with regulations for names of vessels. Appointment of authorised person SR All bodies corporate must appoint an individual as its authorised person to sign all documents required for the registration procedure. The appointment of the authorised person must be notarised if it is not authorised under the common seal of the company. Application to register SR This application is required to be made either by the owner personally or, if the owner is a company, through its authorised person.
3 Page 3 First Registry title documents 1. It is necessary to produce a builder's certificate, that is to say, a certificate signed by the builder of the ship, and containing a true account of the proper denomination and of the tonnage of the ship, as estimated by him, and of the time when and the place where she was built, and of the name of the person (if any) on whose account the ship was built, and if there has been any sale, the bill of sale under which the ship, or a majority of the shares therein, has become vested in the applicant for registry. 2. In the case of a ship condemned by any competent court, an official copy of the condemnation. All documents which are in a foreign language should be accompanied by a certified translation. On transfer of registry from another British port SR The Registry of any ship may be transferred from one United Kingdom or relevant overseas territory port to another on the application to the Registrar of the existing port of registry of the ship being made (Form SR101-16). An official transcript of the Register is then sent to the Registrar of the port to which the registry is to be transferred. The ship's Certificate of Registration should be delivered up to the Registrar at the intended port of registry or to the Registrar of its current port of registry for onward transmission to the intended port of registry. Upon the fresh registration of the vessel in question the Registrar of the original port of registry will terminate the registration of the ship in his Register. Re-registry If the vessel was previously registered, it is necessary to obtain an official transcript of the register from the last port, showing the closure of the registry with the vessel free from encumbrances. This is to avoid the possibility of dual registration. Certificate of Survey All ships must be surveyed (a tonnage measurement survey) prior to registration by the surveyors of the United Kingdom Maritime and Coastguard Agency or by surveyors of one of the following approved classification societies: Lloyds Registrar of Shipping (LR) Det Norske Veritas (DNV) Bureau Veritas (BV) Germanischer Lloyds (GL) American Bureau of Shipping (ABS) Registro Italiano Navale (RINA) Nippon Kaija Kyokai (Class NK) On application to the Registrar, a survey prior to registration can be arranged in any port in the world where there is a surveyor from one of the above organisations. This survey is carried out to establish or verify the tonnage measurement and particulars of a ship and will be completed on the relevant form, depending on the size of the vessel. Declaration of eligibility SR The owner or duly appointed authorised person in the case of a company, must complete a Declaration of Eligibility (SR101-06) which states amongst other things that the owner is qualified to own a BVI ship as well as the number of shares in the legal title of the ship which is vested in him or it.
4 Page 4 Registration and issue of carving and marking note Upon presentation to the Registrar of the foregoing documentation with the relevant fees the Registrar shall issue a Carving and Marking Note (Form No C.342). This document must then be forwarded to an approved surveyor who will inspect the vessel to ensure that the official number, port of registry and details of tonnage are properly marked on the vessel. The Carving and Marking Note is then to be returned duly certified by the surveyor to the Registrar. A vessel may not proceed to sea until it has been marked in accordance with the statute. The Registrar will then register the vessel and provide the Certificate of British Registry. Provisional registration It is sometimes the case that the owner needs to move the vessel (once carved and marked) before it is fully registered. In such cases, the owner may apply for a provisional Certificate of Registration which is valid for a period of up to three months. Fees for registration, transfer of port of registry or re-registry Registration and tonnage fees The following are some of the registration and tonnage fees payable to the BVI Government: Registration US$ US$ Registration Fee Annual Fee Registration dues on new registration, transfer of port of registry, registry anew, or re-registry (pleasure use): 1. for vessels less than 24m for vessels 24m and above Registration dues on new registration, transfer of port of registry, registry anew, or re-registry (commercial use): 1. for vessels less than 24m for vessels less than 500GT for vessels 500GT 1000GT 1, for vessels 1000GT 3000GT 1,500 1,000 Registration dues on new registration, transfer of port of registry, registry anew, or re-registry (merchant use): 1. less than 500GT for vessels 500GT 1,999GT 750 ( for each addition 1,250
5 Page 5 GT) 3. for vessels 2,000GT 9,999GT 1,500 ( for each additional GT) 4. for vessels 10,000GT 49,999GT 2,940 (+0.16 for each additional GT) 2,500 7, for vessels 50,000GT and above 10,000 10,000 Service Fees US$ 1. Entry of Bill of Sale (other than on registering the vessel) Entry or transfer of mortgage Discharge of mortgage Recording mortgage intent Current transcript Certified copy of closed transcript Reissue of certificate of registry Change of name (including certificate of registry) Transfer to red ensign within the red ensign group Copy of other document Name reservation Provisional certificate 250 Transfer of ownership to another "qualified person" Every Bill of Sale (Form SR101-07) for the transfer of a registered vessel or a share therein, when duly executed, shall be produced to the registrar of her port of registry together with a Declaration of Eligibility (Form SR101-06). Immediate registration of these documents is essential. Bills of Sale are entered in the register book according to the date of their presentation to the Registrar, not their date of execution. The original Certificate of British Registry must also be returned to the Registrar so that an updated one can be issued to replace it.
6 Page 6 Mortgages A registered ship or a share therein may be made security for a loan or other valuable consideration. The instrument creating the security (which must be completed on prescribed statutory forms) must then be registered at the ship's port of registry. All mortgages are recorded by the Registrar in the order in which they are presented to him, not according to their dates of execution, and rank in accordance with registration date. Seafarer qualification and certification Requirements for qualifications and training for seafarers working on ships depends on size of ship, type of ship, area of operations and in what capacity the seafarer on board is working in. The BVI ship registry issues endorsement to the holders of STCW Certificate of Competency issued by IMO "White List" countries. The endorsement is issued in accordance with regulation I/2 of the STCW 78 Convention as amended in The BVI ship registry issues Boat Master and Boat Engineers Licences described in Chapter IX, Part A of the Caribbean Small Commercial Vessel Code, as well as licences as Boat Master or Boat Engineer, as appropriate, to persons who meet the requirements of the regulation stipulated in the SCV Code. Application for ship radio station licence and radio telephone operator licences Application in the BVI is made to the Telecommunications Regulatory Commission ("TRC") for both the ship radio licence and radio telephone operator licence. The TRC has issued forms for each of these as well as for annual renewal. The vessel owner is required to submit details of the vessel and the marine radio equipment in the application for the ship radio licence. The TRC will liaise with the BVI ship registry to verify that the vessel has been fully registered. In support of the application for the radio operator licence, it is necessary to submit a notarized copy of the data page of the operator's passport or birth certificate along with two passport-sized pictures. Notarized copies of the relevant certificates of competency and other certificates must also be produced in support of the application. The ship radio licence is US$30 per annum and the radio operator licence is US$10 per annum. International convention certificates Surveys required prior to the issue of Convention Certificates may proceed independently of registration. It is recommended that arrangements be made to have ships surveyed contemporaneously with registration so as to ensure that all the required certificates will be in order immediately upon registration procedures having been completed, thus avoiding delays in entering operational service. The types of certificates issued to the vessels differ from ship to ship depending on the use, type and size of the vessel. However, the list of statutory certificates issued to different category of vessels, include: 1. passenger ship safety certificate; 2. international load-line certificate 3. international oil pollution prevention certificate; 4. safe manning certificate; 5. safety equipment certificate;
7 Page 7 6. safety radio certificate; and 7. cargo safety construction certificate. Dated: August 2015 For further information please refer to your usual contact or: British Virgin Islands - John Gosling, Partner john.gosling@walkersglobal.com Dubai - Daniel Wood, Partner daniel.wood@walkersglobal.com Hong Kong - Andy Randall, Partner andy.randall@walkersglobal.com London - Jack Boldarin, Partner jack.boldarin@walkersglobal.com +44 (0) Singapore - John Rogers, Partner john.rogers@walkersglobal.com The information contained in this memorandum is necessarily brief and general in nature and does not constitute legal or taxation advice. Appropriate legal or other professional advice should be sought for any specific matter. Walkers works in exclusive association with Taylors in Bermuda, a full service commercial law firm providing advice on all aspects of Bermuda law.
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