Basing your yacht in the BVI
Perhaps you have decided to make a lifestyle change; sell it all, buy a boat, cruise the Caribbean and make a few dollars while you are at it by taking passengers on board. Or maybe you are cruising elsewhere in the world and would like to explore chartering in BVI waters. Before you pack it all in and set sail for this tropical sailing paradise you need to be aware of the intricacies of operating a charter business in the British Virgin Islands.
This brief outline serves the purpose of giving you a general overview of what you should know before you arrive to charter in the BVI.The Yacht
The BVI has recently moved into the 21st century, marine safety-wise, adopting several codes for small commercial vessels. The marine safety legislation went into effect at the beginning of February 2004. It is being applied to all vessels chartering in BVI waters, whether the yacht is BVI based or foreign-based. The codes are concerned with the construction of a vessel, its machinery, equipment and stability, and the correct and safe operation of the vessel.
- The “Blue Code” relates to passenger (non-cargo) sailing yachts less than 24 metres long and carrying 12 or less passengers.
- The “Yellow Code” relates to passenger (non-cargo) power yachts less than 24 metres long carrying 12 or less passengers.
- The SCV (Small Commercial Vessels) Code for the Caribbean relates to commercial vessels which are cargo, and passenger vessels of less than 24 metres, carrying no more than 150 passengers.
October of 2007. The BVI has put out a new brochure on the local Shipping Registry and requirements for flagging your vessel here. This is a large PDF copy of the brochure. It is a very large file, so be patient!
Applications for inspection and certification are handled by the BVI Maritime Administration in the Virgin Islands Shipping Registry office, Sebastian’s Building, Road Town.
In addition, a BVI Radio Station License and an Operator’s License are also required. Licenses are obtained through Telecommunications and Works in the RG.Hodge Building in Road Town.
The Skipper
Aside from the requirements of having to enjoy hosting people, being outgoing and possessing great élan, the standard building blocks of a great charter captain, the marine safety code requires all BVI-based skippers to hold a BVI Boatmasters License with STCW certification. In some cases a transfer of qualifications can be made provided that the qualifications are MCA recognized. Applications for a BVI Boatmasters License are available on line at www.bvicrewedyachts.com\members\cys3m.html and should be filed with the Maritime Administration.
The 1st Mate/Chef
The first mate/chef should also be hospitable, and very flexible. Formal culinary qualifications are certainly an asset. An annual food handler’s license is required, but cannot be obtained until after getting a work permit. All crew working on a crewed yacht based in the BVI are required to have completed the STCW basic qualifications course.
Operating a Yacht as a BVI Based Charter Business
Most charter yachts select a central booking agent or “clearinghouse”, which will assist them in getting established in the crewed yacht industry. Among the many services they provide are holding the yachts master bookings calendar, fielding broker enquiries, receiving and husbanding charter deposit monies from brokers, and holding such in an escrow account, along with the items that any professional businessperson-afloat would need, such as mail and internet services. Clearinghouse staffs are a wealth of information and can be very helpful in assisting floating business owners in navigating BVI government offices.
BVI Based Clearing Houses include:
CharterPort BVI*, Regency Charter Services*, Catamaran Services*
BVI Trade Licenses
Just as if you were opening a shop, boutique or restaurant ashore somewhere, no one may operate a commercial recreational vessel in BVI waters without first obtaining a license.
If you are intending to be a BVI-based charter yacht, application forms can be obtained from and returned to the government’s Trades and Investment Promotions office. Yacht owners should anticipate waiting at least 3-6 months for their license to be approved. Regular follow-up is a must. There are two ways to file for a license
- File direct with the Trade and Investment Promotions Office
- Use the services of an agent or a lawyer to assist in the process of obtaining a license.
Either choice, you will require the following:
- Name(s) under which the business is to be operated
- One 2x2 photo of the applicant(s)
- Two character references
- A bank reference
- A police certificate (produced within 3 months of application and must be from most recent place of residence for at least 6 months or longer)
- A business plan
- Source of financing
Work Permits
In order to work in the BVI as crew of charter vessels (ie. allowed to do limitless charter pick ups), crew (non BVI citizens) must hold BVI work permits. The order of things is first the Trade License, and then comes the work permits. Applications may be obtained from the aforementioned agent, or from the various clearinghouses, or direct from the Labour Department. The process seems daunting, but it’s no different from what non-citizens go through to enter the US or the UK to work legally. The name(s) on the trade license is the employer; therefore if you are the holder of the trade license you require a Self-Employed work permit whereas an Employee Permit is required for hired crew. Upon approval, permission is granted to enter the territory. Immigration status is then granted and the charter vessel becomes a viable BVI-based operation.
Work permits in general run $500 or more each and must be renewed annually. A cash bond of $1000 per person must be posted. The bond will be returned upon departure from the territory.
Annual Recreational Commercial Vessel License
Once your BVI Trade License is issued and you have your work permits have been approved you take your license to Customs where you present it and then pay your annual Recreational Commercial Vessels License. This license is due for renewal on the 1st of November each year. It is dependent on the size of vessel and ranges from $400 - $800. Mark the above date on your calendar. Missing payment can cost you $5,000.
BVI Taxes and Social Security
BVI Employers and BVI Employees both pay taxes and Social Security.
BVI SOCIAL SECURITY:
Employees: 4% wages (not to exceed $101.40/month) Employers: 4.5% wages paid (not to exceed $114.08/month)
BVI INLAND REVENUE:
Employees: Maximum 8% of wages (after first $10,000) Employers: Minimum 2% of payroll: Employee/Employer contributions to equal 10% of wages
All BVI Companies are expected to file an annual tax return
Office |
Senior Contact Name |
Telephone |
|
BVI Maritime Administration |
Capt. Pat Nawaratne |
284-468-3603 |
|
CharterPort BVI |
Dick Schoonover |
284-494-7955 |
|
Regency Charter Services |
Kathleen Mullen |
340-776-5300 |
|
Catamaran Services |
Dana Candel-Waters |
284-494-6661 |
|
Trade & Consumer Affairs |
Mr. Al Frett |
284-494-3701 ext. 2008 |
|
BVI Government Switchboard |
|
284-494-3701 |
|
BVI Customs |
Mr. Fahie |
284-494-3436 |
|
Inland Revenue |
|
284-494-3701 ext.2155 |
|
BVI Social Security |
|
284-494-3418 |
