When talking about yachts the first thing that comes to our mind is the status of prestige and class that having this magnificent work of engineering can bring to our lives, it means sailing the Mediterranean free of worries or even spending a weekend in Monaco to witness the Formula 1 Grand Prix from your yacht, it is certainly a feeling full of emotion. However, once you set foot on land you may come to consider that owning a yacht also requires maintenance and other associated costs to fully enjoy its benefits.

This point would be a limitation for many individuals when deciding to purchase a yacht, as the relation between the cost of use and the utility of the yacht does not always lead to a friendly conclusion. However, thanks to the regulations established by the Marshall Islands, it is now possible to rent your private yacht for a limited time of the year, in French and Monegasque waters with a real possibility of being extended to the rest of Europe, thus creating the possibility of generating income without the need to limit the enjoyment you can have of your yacht. It is important to note that the Mediterranean previously limited yachts to only one category, private or charter.

It has been previously mentioned the great relevance of the Republic of the Marshall Islands in the maritime field since this chain of islands and atolls has the third-largest registry of ships in the world, currently exceeding 550 yachts, but not only this, they also have worldwide recognition for the large number of contributions they have made to the development and security of the boat registration process.

Having explained this, we can mention the new program developed by the Marshall Islands called "Yachts Engaged in Trade" (YET) which, in summary, allows those who own a private yacht to rent their boat, without the need to be limited to a commercial function.

Yacht Code in the Marshall Islands

The flag of the Republic of Marshall Islands is considered a low-risk flag, even falling under the Paris Memorandum of Understanding (MOU) white list, which represents the lowest risk of being detained on the high seas. The large magnitude of yacht registration in the Marshall Islands can also be attributed to the ease of this process and the tax exemptions that are very welcomed by investors.

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The registration process must be done through an authorized intermediary, as mentioned on previous occasions it can be through a qualified lawyer or accountant. The Republic of the Marshall Islands allows through the Yacht code the registration of private boats, commercial yachts, passenger yachts, and private limited charter yachts:

Private Yacht: A private yacht is defined as one that is used for recreational purposes only, perfect for those who just want to take a well-deserved break from the busy business world. Yachts registered under this classification are not involved in commercial activities or passenger transportation. To register a private yacht in the Marshall Islands it must be over 12m in length.

Commercial Yachts: A commercial yacht is defined as a yacht that, unlike private ones, is involved in commerce and transporting passengers to a lesser extent than twelve passengers.

To register a commercial yacht in the Marshall Islands it must be over 24m in length.

Passenger Yachts: Passenger yachts are defined as any yacht that is qualified to carry at least 12 passengers, limited to a maximum of 36 passengers. A class certificate from the relevant authorities is required.

Private Yacht Limited Charter (PYLC) This would be the perfect type of yacht for those who still have a busy business life, but who are conscious that they deserve a break in the middle of paradisiacal waters. However, nobody has time to think about losses and that´s the reason a limited rental private yacht offers the possibility of being rented for less than 84 days per year and can carry up to 12 passengers, thus creating the possibility of generating income with this yacht even when it is not being used for personal pleasure. The registration of this type of vessel is limited to those with a length greater than 18 meters. 

Finally, RMI yachts must be adequately and safely manned in accordance with international regulations, meaning that all commercially registered yachts, private limited charter yachts, commercial yachts, and passenger yachts must have a Minimum Safe Manning Certificate (MSMC).

Once this is understood, it is important to mention the possibility to register a yacht in the Marshall Islands through the different types of corporate structures present in the territory or their foreign equivalents, such as an RMI business corporation, a General Limited partnership, limited liability company or even a Foreign Maritime entity.

This process can take as little as one business day with the proper documentation. The Marshall Islands is also recognized for providing a favorable degree of privacy. However, according to the MI Associations Law, certain information will be required conditioned to the type of entity.

Advantages of Marshall Island Yacht Program

When talking about the Marshall Islands, the word profit comes hand in hand with this small nation, not to mention its paradisiacal beaches, perfect weather, and unique geography in the world as this is only secondary when we take into consideration all the benefits and facilities that come with doing business in the Marshall Islands, but mainly, what are the benefits of having a yacht registered in the Republic of the Marshall Islands. At Mundo, we summarize them as follows.

International Recognition: It has already been mentioned on numerous occasions, but it is difficult to start talking about the benefits of the Marshall Islands without taking into consideration the international recognition that the Marshall Islands ship registry has. It is even promoted by professions around the world in this field, from whom you can receive technical support and assistance. It should also be mentioned that the RIM has been part of the United States Coast Guard's Qualship 21 roster for more than 10 years in a row, which recognizes quality shipping operations. 

Security and Trust: Along the same lines, not only you will have competent and flexible jurisdiction in terms of your privacy, but the RMI ship registry is also recognized as a jurisdiction that meets high-security standards, which is why it is part of the Paris and Tokyo Memorandum of Understanding (MOU) white lists that represent the lowest criteria for screening or detention at the level of circulation.

Freedom of Navigation: The importance of the above-mentioned lies in the following benefits, It is important to recall that scenario where you can see yourself sailing in the Mediterranean Sea, well it is perfectly possible because the yachts registered in the Marshall Islands are eligible for navigation and charter in Europe; but not only in the old continent, because you will also have the possibility to apply for a circulation permit in the United States of America.

Mortgage and Tax Exemptions: Thanks to the innovative ship registration service and the constant improvements that are made in this area, it is possible to register a boat in the Marshall Islands whose mortgage is still subject to a previous jurisdiction, thus providing for the continuation of the preferential status of the mortgage without interruption. This tax will follow the jurisdiction of the Marshall Islands. It is also possible to register a yacht when it is still under construction, it must comply with the established guidelines.

To register your yacht you can go to any of the 27 offices that the Republic of the Marshall Islands has distributed throughout the world and request the support of a qualified intermediary; during registration, you can apply for a one-year program. However, a three-year program may also be offered. 

The benefits of registering your yacht in the Marshall Islands are countless, it can be appreciated because this nation works every day to make this procedure of ship registration on the Island even more efficient and accessible. If you have the desire to know more about this paradisiacal territory located in the middle of the Pacific Ocean you can contact us here at Mundo.