Getting your corporate structure in place by Chris Allix

When purchasing a large asset such as a yacht or private jet, and especially if directly from a builder, we would advise you to have a company structure in place so that all contracts and stage payments can be made through this owning company, providing a robust asset protection structure should it come under attack.

Another very good reason for choosing a licensed Corporate Service Provider (CSP) at an early stage is that over the last few years, legislation to combat anti money laundering and terrorist funding has increased substantially. The days of companies being set up on the back of a phone call are gone. Whilst CSPs understand that current compliance requirements can appear intrusive and unreasonable to clients, they are keenly aware of the importance of such regulations which give jurisdictions like the Isle of Man credibility and diminish the threat of black listing due to failure to comply with internationally agreed standards. We are certain that our clients and prospective clients would agree that the benefits of using reputable jurisdictions such as the Isle of Man, with robust regulatory authorities, far outweigh the initial inconveniences of going through the due diligence process. The regulations are set up to protect the reputation of the jurisdiction, the CSP and most importantly to protect the clients themselves. If you are spending good money to protect your assets, then it is vital you deal with a licensed CSP and first class jurisdiction that takes anti money laundering legislation very seriously.

As licensed entities we can not accept any new business until we have full disclosure of any corporate or trust structure, certified copies of passports belonging to the beneficial owner and the trustees or directors, officers and shareholders of underlying companies. We also need to have proof of domicile and evidence of the source of the principal’s wealth. It is important that we can show that the principal can afford to purchase the yacht or private aircraft. We also must have full details of the bank account which will be funding the acquisition and running costs of the asset.

Yachting specialists Dominion Marine Corporate Services and aviation specialists ICM Aviation (through licensed CSP partner ICM Limited) set up corporate structures for yacht and aircraft owners, charging a notional annual fee to cover costs during the build plus a time spent fee for any additional work requested in this period. Full scale annual fees are activated only when the yacht or aircraft is delivered. We do not charge for completing basic compliance but we do reserve the right to charge additional fees based on time spent processing Politically Exposed Persons (PEPs) or where there are underlying corporate or trust structures from more unusual jurisdictions in areas such as Central America, Eastern Europe and Central Asia.  We endeavour to complete the compliance process as quickly as possible as we know this is in everybody’s interest. If this requires a member of our compliance department to meet a new client outside the office then this will be charged as a time spent fee and expenses.

Dominion Marine Corporate Services Limited is licensed by the Isle of Man Financial Supervision Commission as a Corporate Service Provider. Inter-Continental Management Limited is licensed by the Isle of Man Financial Supervision Commission as a Corporate &Trust Service Provider.