What makes a great yacht registry? And why do so many owners choose to flag offshore? In this video, Dockwalk editor Erik Petersen sits down with Ionna Hernandez, senior client relations manager for yachts at International Registries, Inc., to explore the realities of flag states and foreign registration. Hernandez, whose company provides administrative and technical support to the Republic of The Marshall Islands' maritime and corporate registries, shares what truly matters for owners and crew navigating today's global yachting landscape.
Choosing where to register a yacht is one of the most important yet often misunderstood decisions an owner can make. “A lot of people register under a foreign flag because there are some tax advantages, but there are many reasons," Hernandez says. “It could be for anonymity, liability, the ability to hire foreign crew or maybe their home flag doesn't have the option for their size vessel to register.”
For larger yachts in particular, domestic registries can be restrictive. Hernandez points to the US as an example, where registering vessels over 300GT can be complex, while smaller yacht owners may face challenges with insurance.
The crew factor
One of the most practical advantages of foreign flagging lies in crewing. While it is technically possible to hire an international crew under some domestic flags, the administrative burden can be significant. “Most crew are going to be foreign," Hernandez explains. “Registering under a foreign flag opens up the doors, making it easier to get quality crew on board.”
For captains and managers, this flexibility can be critical to maintaining high standards on board while navigating visa requirements and compliance.
Another area where registries can add value is in crew development. Hernandez points to initiatives within The Marshall Islands Registry that address gaps in certification pathways. “We saw a need to get captains to step up to that next level,” she explains, referencing new licence structures designed to bridge limitations in existing qualifications and remove progression barriers. For crew looking to advance, these kinds of programmes can be transformative.
What defines a "high-quality" flag?
Not all registries are created equal, and Hernandez stresses the importance of choosing a flag with a strong international reputation. “You want to make sure that it is a high-quality flag,” she says, pointing to “whitelisted” status under port state control agreements such as the Paris and Tokyo Memorandums of Understanding.
This recognition signals that a registry meets high safety and compliance standards - something that becomes even more important for charter yachts operating globally.
Beyond reputation, practical considerations also come into play. Owners should look for registries that offer flexible operational structures, such as dual-use programmes that allow both private and commercial use.
A strong registry should also offer depth of industry-specific knowledge. From technical support to crewing and compliance, having dedicated yacht teams can make a significant difference. Hernandez highlights the value of registries that are represented at international bodies such as the IMO and ILO, enabling them to advocate on behalf of their clients.
This becomes particularly relevant as the industry evolves, with emerging technologies such as hydrogen and LNG propulsion requiring specialist knowledge and regulatory flexibility.
Why global support matters more than location
While the physical location of a registry might seem important, Hernandez argues that accessibility is what truly counts. “I wouldn't say that the location itself is important. I think what's important is that they have offices around the world so that they're able to meet the client's needs.”
With yachts operating across multiple time zones, immediate support can be crucial. “You never know when you're going to need your flag state's help,” she adds. “It's nice to have someone pick up the phone and know that someone's there to help you.”
Cost transparency is another key consideration. Owners should be aware of potential additional expenses, from annual fees to corporate requirements such as local registered agents. “These are things that maybe someone's not taken into account when they're first registering their vessel,” she notes.
A solution-based approach
Ultimately, Hernandez thinks the best registries take a collaborative, solution-driven approach. “The one thing you want to look for is a solution-based registry,” she says. “Look for the registry that's going to be the best fit for you and your needs.”
From operational flexibility to global support and technical expertise, the right flag state should act as a partner – supporting owners, captains and crew in navigating the complexities of modern yachting.
To learn more about how The Marshall Islands Registry supports yacht owners, captains, and managers with flexible, high-quality flag solutions, visit its website or speak to a member of its global team.
Sponsored content created for International Registries, Inc.