Choosing the Isle of Man Ship Registry: A guide to yacht registration in the Isle of Man

By Callum Carine and Rachel Purnell 

The Isle of Man Ship Registry is one of the world’s leading registers of ships and superyachts. An ISO 9001 and 14000 certified organisation, the Isle of Man Ship Registry operates efficiently and consistently to exceed the standards expected of a modern Flag State.  

The Isle of Man Ship Registry (IOMSR) belongs to a prestigious group of registries that position themselves as Category 1 British Red Ensign Group members. 

Over 800 vessels are registered with the IOMSR and clients includes many of the world’s blue chip ship owners and distinguished superyachts; choosing the flag of a Red Ensign Group member affords a vessel international protection from the British Royal Navy.  

The Isle of Man is home to the IOMSR, however, as a global jurisdiction of choice with a 24/7 response commitment; the IOMSR has established a global network of surveyors and representatives in key maritime locations. 

At Equiom, we have a wealth of experience in registering yachts and highly recommend the IOMSR’s team of professionals dedicated to providing the very best in service.  

Why is it important to register a vessel? 

The principal reasons for registering a vessel include: 

• to reserve its nationality (important for transient vessels on international voyages) 
• to secure title to a transient asset for the owner of the asset 
• to allow the vessel to be used as security to obtain a marine mortgage 

Why register a vessel in the Isle of Man? 

• Category 1 British Registry: The IOMSR is a member of the Red Ensign Group with Category 1 status and is authorised to accept almost all vessel types, including merchant ships, offshore vessels and private and commercial yachts. 
• Favourable Operating Environment: The Isle of Man is a politically and economically stable, self-governing British Crown Dependency. The Isle of Man is an [1] OECD 'white-listed' jurisdiction, increasing access to financial services at lower cost. Furthermore, backed by a government which strongly supports the maritime sector, the IOMSR is operated on a cost-neutral platform, allowing its fee structure to be extremely competitive.    
• Efficiency: The IOMSR is proud of its customer friendly reputation and deep technical expertise. With a 24/7 response commitment and a growing network of surveyors (aided by the advances in remote technology) the IOMSR provides a swift and responsive service to allow owners and managers to keep their vessels operating in a competitive global industry. The IOMSR can process registrations in all time zones to suit shipyard times/closing meetings anywhere globally at extra no cost to the client.  
• Experienced global team: Headquartered in the Isle of Man, with representatives located internationally the IOMSR can process registrations in various time zones in a prompt and efficient manner. Furthermore, the Isle of Man offers the full range of professional maritime services to assist with the registration, ownership and management of vessels and crew. 
• Tax-neutral: Recognising the significant sums involved in the purchase and maintenance of modern vessels, the tax neutrality of the Isle of Man minimises tax leakage involved in vessel acquisition and ongoing operation. Compliant with international tax standards, the Isle of Man does not charge corporation tax, inheritance tax, capital gains tax, and there are no other direct taxes on companies carrying on maritime business within or outside the Isle of Man. 
• Flexibility: The IOMSR offers a range of vessel registrations including full, simple and demise registrations. There are also registration options for commercial yachts under construction, pleasure yachts charter ready, pleasure yacht plus and pleasure yachts. Finally operational flexibility does not oblige vessels to make physical calls in the Isle of Man.       

The Registration Process 

1. How does the vessel and owner qualify for registration? 

As part of the application process, the IOMSR will check the yacht’s registration suitability by ensuring all of the yacht certificates are aligned with the requirements of the vessel for registration compliance.  Naturally, the requirements are lessened for pleasure yachts comparative to commercial yachts, however, pleasure yachts over 24m may opt for enhanced quality of compliance.  The IOMSR provide a unique ‘Pleasure Yacht Plus’ option, for registration which allows a yacht to evidence an enhanced standard of maintenance, safety, security and crew welfare.   

The IOMSR accepts registration applications for individual owners, joint owners and corporate owners (including Limited Partnerships).  To register, you must ensure the registered owners meets the qualifying criteria.  This typically includes the owner being British citizens, nationals, overseas territory citizens and citizens of any countries listed on the published schedule 1 of Registry Advice Notice (RAN) 02. Similarly for corporate owners, these must be incorporated in any of the following countries and having their principal place of business in any of the following countries: 

• The Channel Islands (Isle of Man, Jersey and Guernsey)  
• The United Kingdom 
• Any of the countries listed in Schedule 1 of RAN 02 

It is worth noting that the countries listed in Schedule 1 RAN 02 is rather extensive and was extended to over 120 in total, with over 50 countries added in March 2025. 

Once the registration eligibility is qualified, an application to reserve the name should be made to the IOMSR and a port selected from one of the four ports of registry in the Isle of Man; Castletown, Douglas, Peel or Ramsey. 

Note: There is a legal requirement for a local representative to be appointed for all vessels over 24 metres registered in the Isle of Man (RAN 015). If the registered owner is not an Isle of Man corporate (which can appoint themselves), then a local representative person is required.  Equiom provide Representative Person services to many of their clients. 

2. Registration Process 

The registration forms, vessel documentation and fees vary slightly depending on the type of registration and vessel size. Generally, to complete a yacht registration, the IOMSR require the following: 

•    Registration forms: 
      o    Relevant Application forms; 
      o    Appointment of authorised person; 
      o    Declaration of ownership; 
      o    Appointment of representative person; 
•    Bill of sale (or Builders certificate if a new vessel); 
•    Certificate of Incorporation (for corporate entity) / Passport (for individual); 
•    Certificate of survey; 
•    Tonnage certificate; 
•    Deletion certificate; 
•    Vessel certificates (if required due to size under IMO conventions), and; Payment of relevant registration fee. 

3. Issuing of a carving and marking note  

Once the registration application has commenced, the IOMSR will issue a ‘Carving and Marking Note’.  This is simply a document that states the yacht’s official name and port of registry. These details are both to be permanently marked on the hull and her official number which is to be permanently marked on the interior main beam. For yachts over 24m, the carving and marking note must be verified by either; a surveyor of the IOMSR; or, by a Classification Society surveyor. The verifying surveyor must sign the note which must then be returned by the owner to the IOMSR.  

4. Radio Licensing 

The IOMSR does not issue Radio Licences. In order to apply for a Radio Licence, Spectrum Licensing should be contacted using the details below: 

      OFCOM 
      Riverside House 
      2a Southwark Bridge Road 
      London 
      SE1 9HA 

Tel: 020 7981 3131 

Email: Spectrum.Licensing@ofcom.org.uk 

Once obtained, the call sign and MMSI number are to be forwarded to the IOMSR for their records. 

5. Registering a Mortgage (if required)  

The Isle of Man is an OECD ‘white-listed’ jurisdiction with an Aa3 credit rating, the IOMSR facilitate the secure recording of mortgages against yachts on their register.  

There are two types of mortgages available to record with the IOMSR: an ‘account current’, and; a ‘principal sum and interest’.   

An ‘account current’ is the most commonly used type of mortgage. This does not specify the value of the mortgage as the value is not mentioned in the mortgage deed, instead the borrower has an ongoing account with the lender. The amount owing is not recorded in the register.  

A ‘principle sum and interest’ mortgage specifies the amount borrowed (including currency) and the instalments in which it is to be repaid, together with the interest amounts.  

Furthermore, the IOMSR provides an option to record a ‘mortgage of intent’ which is valid for a 30 day period, which can be renewed if required. This is helpful for securing priority for a mortgage on a vessel that has not yet been registered.  

6. Completion of Registration 

Once the above has been completed as required, the vessel’s registration will be affected and the Certificate of Registration provided by the IOMSR.  The vessel can now fly the Isle of Man Red Ensign flag and enjoy the peace of mind knowing they have chosen a high quality registration for their yacht.  

How can Equiom assist? 

Equiom have a team of yachting experts who will be pleased to introduce you to the IOMSR and guide you through the complex process of yacht registration if necessary.   

Equiom can assist you with entity incorporation and the ongoing governance involved in owning a vessel and managing a crew. Furthermore, Equiom can provide local representative person services where required by a yacht owner. For further information, please contact your usual Equiom contact or the authors of this article Callum Carine or Rachel Purnell.  

[1] The Organization for Economic Co-operation and Development (OECD) is a unique forum where the governments of 37 democracies with market-based economies collaborate to develop policy standards to promote sustainable economic growth. 

 

This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. This article cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained within this article without obtaining specific professional advice. Please contact Equiom Group to discuss these matters in the context of your particular circumstance. Equiom Group, its partners, employees, and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.