The “Convenience” of Moldovan Flag for Yachts Registration
November 26, 2011 By Furtuna Law Office
Everyone who buys or builds a yacht sooner or later are thinking about the registration and obtaining the right to property of vessel. Registration of yacht or another type of vessels, gives the right to navigate under the flag of the State in which the boat is registered, as well as the property right over it, which means that it must be registered in the Register of Shipping of some concrete state.
At the same time it must be remembered that from the moment of registration of the ship, in some concrete country, on board of the vessel acting law of this state, including the international principle of extraterritoriality.
And here arises the main question, - the flag of which country is better for your vessel?
According to the international classification, all state Ship registers are divided on the so-called "open" and "national" or "closed" registries.
"National or closed" registries - are the State Registers of Ships in which may be registered vessels that belonging only to the residents of this country (individuals or juridical entities).
"Open" registries - are the State Registers of Ships in which may be registered vessels owned by foreign individuals or juridical entities.
Thus,- if the vessel owner is not satisfied, by the flag of its country of residence for any reasons, he can choose for his vessel any "Open" flag. At such point, the procedure of choosing of a specific "open" flag should be based on several major criteria, such as:
1. cost of vessel's registration under the flag;
2. cost of vessel's maintenance under the chosen flag;
3. cost of all commercial transactions fulfillment with the vessel, such as the mortgage registration, the transfer of property rights, etc.;
4. minimum requirements for the technical condition and documents of the ship; and
5. terms of execution of all necessary documents.
Besides the above principles foreign relationships of the chosen country with the world community should be takes into account, more specifically, vessel owners should pay attention to the absence of conflicts of this country with other States in whose ports their vessel would most likely enter. Usually, we must pay attention to small countries that have the status of neutrality or the countries that in general don't have access to the sea.
Flags (State Ship Registers) of countries in the international maritime practice corresponding to all of the criteria discussed above, are called “flags of convenience “. Based on the above principles and taking into the account that:
• all vessels owned by individuals or legal entities, whether resident or non-resident can be registered in Republic of Moldova;
• all owners and charterers of vessels registered in Moldova are exempt of tax payments and customs duty;
• there are no restrictions on registration of sea, river and sea-river vessels of all ages and types;
• favorable tariffs for the registration of ships;
• quick registration procedure; and
• the neutral status of Moldova.
The flag of the Republic of Moldova can be, no doubt, called "convenient" for the registration of any vessel.
ABOUT THE AUTHOR: Viorel Furtuna
Attorney at law, Furtuna Law Office
Copyright Furtuna Law Office
More information about Furtuna Law Office
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
And here arises the main question, - the flag of which country is better for your vessel?
According to the international classification, all state Ship registers are divided on the so-called "open" and "national" or "closed" registries.
"National or closed" registries - are the State Registers of Ships in which may be registered vessels that belonging only to the residents of this country (individuals or juridical entities).
"Open" registries - are the State Registers of Ships in which may be registered vessels owned by foreign individuals or juridical entities.
Thus,- if the vessel owner is not satisfied, by the flag of its country of residence for any reasons, he can choose for his vessel any "Open" flag. At such point, the procedure of choosing of a specific "open" flag should be based on several major criteria, such as:
1. cost of vessel's registration under the flag;
2. cost of vessel's maintenance under the chosen flag;
3. cost of all commercial transactions fulfillment with the vessel, such as the mortgage registration, the transfer of property rights, etc.;
4. minimum requirements for the technical condition and documents of the ship; and
5. terms of execution of all necessary documents.
Besides the above principles foreign relationships of the chosen country with the world community should be takes into account, more specifically, vessel owners should pay attention to the absence of conflicts of this country with other States in whose ports their vessel would most likely enter. Usually, we must pay attention to small countries that have the status of neutrality or the countries that in general don't have access to the sea.
Flags (State Ship Registers) of countries in the international maritime practice corresponding to all of the criteria discussed above, are called “flags of convenience “. Based on the above principles and taking into the account that:
• all vessels owned by individuals or legal entities, whether resident or non-resident can be registered in Republic of Moldova;
• all owners and charterers of vessels registered in Moldova are exempt of tax payments and customs duty;
• there are no restrictions on registration of sea, river and sea-river vessels of all ages and types;
• favorable tariffs for the registration of ships;
• quick registration procedure; and
• the neutral status of Moldova.
The flag of the Republic of Moldova can be, no doubt, called "convenient" for the registration of any vessel.
ABOUT THE AUTHOR: Viorel Furtuna
Attorney at law, Furtuna Law Office
Copyright Furtuna Law Office
More information about Furtuna Law Office
View all articles published by Furtuna Law Office
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
