FAQ


What is MALTA Yacht Management?

Malta Yacht Management (‘MYM’) is a Yacht Management Company (‘YMC’) or shore-based management centre supporting yacht operations with respect to accounts, technical interventions and compliance with legislative requirements.

The management and support are offered to the Owner or Yacht Owning Company (‘YOC’), the yacht and the crew by experienced professionals providing comprehensive knowledge, advice, resources and solutions.

Does my yacht NEED A YACHT management COMPANY?

In order to decide whether or not you need a YMC you should consider the legislation, logistics and practical aspects of yacht management:

YACHT MANAGEMENT LEGISLATION

Shore-based management is mandatory for commercially registered and operated yachts of 500 Gross Tonnage (‘GT’) and above.

The Owner, or YMC must assume responsibility for the operation of the yacht and all the duties imposed by the International Safety Management (‘ISM’) Code.

Subject to a successful audit, a Document of Compliance (‘DOC’) will be issued to the YMC by the Flag Administration or Recognized Organisation to confirm compliance with the requirements of the ISM Code.

All yachts of 500 GT and above that are engaged in trade must be operated by a company holding a DOC.

Commercially operated yachts under 500 GT are required to design and implement a Safety Management System (‘SMS’) and clearly-defined Health & Safety Protection Policy. If a YMC is not engaged, then the Owner is accountable for ensuring the yacht is properly maintained, operated by qualified personnel and in full compliance with all relevant legislation.

YACHT MANAGEMENT LOGISTICS

Management of yacht operations is a specialist industry and likely to be outside the field of knowledge and experience of the Owner’s office personnel.

The yacht is a 365-day operation, requiring shore-based support personnel to be on call outside of normal office hours.

The Owner’s office may be located in a different time zone to the yacht’s area of navigation.

The Owner’s office may operate in a different language to the yacht personnel.

PRACTICAL ADVANTAGES OF YACHT MANAGEMENT COMPANY

The Owner can receive professional advice from the YMC in order to make informed decisions on all operational matters and reduce the financial impact of ownership.

YMC can create an additional degree of separation between the Owner and crew to maintain authority and privacy.

YMC will reduce the workload on the crew and remove the requirement for intervention by the Owner.

Is there a legal requirement for yacht owners to have Yacht Management COMPANY?

The yachts that exceed 500 GT and are engaged in trade (chartering), have an obligation to engage a YMC to manage International Safety Management (‘ISM’) Code and International Ship and Port Facility Security (‘ISPS’) Code and Maritime Labour Convention (‘MLC’) compliance.

The shore-based management company is subject to regular audits and inspections from the Flag Administration of the managed yacht, to ensure continued compliance with legislation and regulations.

What are the benefits of Yacht Management WITH MALTA YACHT MANAGEMENT?

The yachts based far from the Owner’s residence expose them to a number of challenges. Even if the Owner resides in close proximity to his yacht, the administrative resources required to manage the complexities associated with maintenance and repair contracts, insurance, warranty, international maritime legislation and local regulations, crew management and accounting will benefit from a specialist, dedicated YMC.

MYM will undertake technical management, day-to-day crew management and operational management of the yacht, in close coordination with the Captain and crew.

What are the benefits of Yacht Administration WITH MALTA YACHT MANAGEMENT?

MYM will guide the Owner through the complex process of acquiring a yacht and advise on the corporate structure best suited to the particular yacht ownership to minimise exposure to taxation and maximise the functionality by analysing the following:

  • VAT status

  • Financing requirements

  • Flag administration

  • Mode of operation

  • International rules and regulations

  • Requirements for crew welfare

  • Nationality and residential status of the yacht Owner

MYM is able to provide the efficient administration of the corporate ownership structure.

What is a Yacht Safety Management System (SMS)?

Every YMC should develop, implement and maintain a Safety Management System (‘SMS’).

The objectives of a SMS are to:

  • Provide for safe practices in yacht operation and a safe working environment

  • Establish safeguards against all identified risks

  • Improve the safety culture and safety awareness aboard yachts

  • Prepare personnel for emergencies related both to safety and environmental protection

What is a Designated Person Ashore (DPA)?

In accordance with the ISM Code, a Designated Person Ashore (‘DPA’) is to be assigned by the YOC to ensure the safe operation of each ISM compliant yacht above 500 GT.

The DPA provides a link between the YOC and those employed on board the yacht.

The DPA must have direct access to the highest level of management within the YOC to ensure adequate resources and shore-based support are allocated to monitor the safety and pollution prevention aspects of the operation of each yacht.

The DPA holds a key role in the management responsibility to implement and maintain the SMS.

The DPA needs to be suitably qualified and experienced in yacht operations or management systems and be fully conversant with the safety management and environmental protection policies.

In order to maintain the management system efficiently: an implementation must be verified, deficiencies must be reported and those responsible for corrective action must be identified and observed to be taking the appropriate corrective action.

How much will my yacht cost to operate?

Every yacht has a diversity of operational parameters that will govern the costs incurred to run it:

  • Commercial or pleasure registration

  • Number of crew required for safe operation

  • Areas and limits of navigation

  • Fuel capacity and consumption

  • Annual operating costs

  • Condition and regularity of maintenance

Typically, crew costs (salaries, food, clothing, insurance) equate to between 35% and 50% of the annual operating costs of a yacht in the 40 to 60 metre range. Therefore yachts with a similar crew requirement will have similar outgoings despite their value.

MYM can analyse actual historic expenditure from a range of similar yachts to more accurately predict an operating budget.

Significant expenditure is generally incurred at 5-yearly intervals, coinciding with Classification Society renewal surveys, paint re-coating and maintenance works. The Owner should be aware of such fluctuations in annual operating costs from the outset and plan for them in the budgeting forecast.

What are the ADVANTAGES in buying a yacht WITH MALTA YACHT MANAGEMENT?

MYM is in a position to assist the potential Owners in focusing on the type and size of a yacht to suit their proposed use and cruising grounds, as well as their budget, without a commercial advantage in steering them in the most profitable direction.

In advising the potential Owners, MYM is to remain mindful of the following:

  • Berth size and draught restrictions of the desired home-base marina

  • Typical proposed use will define the accommodation/cabin numbers, speed, range and capability. Ultimately defining the hull type, construction materials and general appearance

  • Crew costs (inclusive of salaries, clothing, food, insurance, etc.) of the annual operating costs

What is the best flag for MY yacht?

There are many elements to consider when choosing a flag for a yacht.

The decision on where to register a yacht is dependent on many factors such as:

  • Nationality and residency of the Owner

  • Commercial or pleasure operation

  • Classification Society certification and construction approval

  • Yacht age and condition

  • Proposed home berth

  • Area of navigation

  • YOC jurisdiction

  • Existence of leasing or financing

  • Flexibility of flag administration with respect to commercial activities

  • Set-up, annual administration, survey and maintenance fees

  • Flag Administration reputation and rating with Paris MOU

MYM will take all these factors into account before advising on the best Flag Administration and type of registration for the efficient and cost-effective operation of the yacht.

As well as considering the impact of the flag on the country where the yacht is cruising you should also consider the following:

  • Experience and reputation - the reputation of the register is vitally important

  • Political stability - how stable is the government and economic environment?

  • Political and consular support given by the Flag State

  • Registration process: does the jurisdiction provide a convenient and speedy registration service?

  • Mortgages - security of mortgages registered in the Flag State

  • Registration fees - how competitive are the fees imposed by the registry?

  • Manning - how flexible is the Registry in its manning requirements?

  • Services - what is the business infrastructure of the Flag State, are there comprehensive, professional support services?

MYM will provide the right answers depending on the use of the yacht and the personal circumstances of the Owner.

How do I choose the best country of incorporation for my yacht owning company?

There are many elements to consider when choosing the jurisdiction of a company to own a yacht. The following important matters need to be considered:

  • Nationality of the yacht Owner

  • Residence of the yacht’s principal user(s) and their guests

  • Physical characteristics of the yacht (age, length and tonnage being particularly important / conformity with any commercial yacht code)

  • Existing registration of the yacht (if applicable)

  • Availability of historical proof of ownership/title documentation for the yacht

  • Usage of the yacht (i.e. private or for charter)

  • VAT or equivalent tax status of the yacht

  • Area of operation and primary home port

  • Specific crew and operational considerations

Once these have been determined, the choice of appropriate jurisdiction of the YOC can be narrowed, and costs compared to enable a selection to be made based on the Owner’s personal circumstances.

What can MYM offer advice and ASSISTANCE on?

YACHT OWNING COMPANY

  • Consultancy

  • Set-up of a corporate structure for ownership

  • Minimising Tax and VAT exposure

  • Most suitable Flag Administration under which to register the yacht

  • Legislation concerning crew employment

  • Marine finance

  • Insurance policies for the yacht’s hull and machinery, public liability and crew medical and personal accident

  • Financial reports

YACHT MANAGEMENT

  • Certification

  • Annual budgeting and expenditure

  • Crew salaries and employment contracts

  • Crew management and complaints procedures

  • Warranty and insurance claims

  • Maintenance requirements

  • Shipyard periods and contract negotiation

  • Flag administration and Classification Society survey

  • Coordination, attendance and follow-up

  • Safety, security and environmental legislation

  • New construction, or refit and repair coordination and project management, with particular emphasis on quality, time and costs

Focusing on the longer-term value creation and operating with the yacht owner’s approach MYM will always seek to find a cost-efficient and safe solution to any yacht management request you may have.