FREQUENTLY ASKED QUESTIONS
A partner company is a combination of a limited company and a limited partnership. If you do not want to be held liable for more than the amount invested in the company, and at the same time want to apply the Corporate Tax Act (in Denmark: Virksomhedsskatteloven), you can choose to run the company as a partner company. The limited partners are in a partner company shareholders who buy a shareholding in the company and are therefore only held liable with the contribution for the company’s obligations. The general partner is held liable as in a common limited partnership, that is, with all its investments for the company’s debts and obligations. The general partner is, in our business concept, the private limited company, which is owned by the limited partners. In this situation, the liability for the partner company’s obligations is completely limited; the limited partners are only held liable with their investment, and the owners of the general partner are only held liable with the company capital in the general partner.
Every partner company will invest in two yachts within the same category.
The investment covers all the expenses associated with acquiring the two yachts. This means that your investment covers; providers fee for The Yacht Club, third party purchase inspection, purchase of the two yachts and establishment of the partner company and the general partner. If the yachts are chosen to be rebuilt and modernized before they are used, the expense will be included in the total investment. Finally, the investment will cover the costs of port, insurance and crew, which is required when the yachts are acquired.
The monthly expenses cover both the administration costs of The Yacht Club and the operating and maintenance costs directly allocated to the two yachts of the partner company. An annual maintenance- and upgrading plan is put in place so that The Yacht Club, on behalf of the partner company, takes into account any larger future expenses for these activities. The savings of these activities are made either through joint expenses or by using the income from having the yachts on charter. The value of the yachts is then maintained. If there is a consensus that there is no need for maintenance or upgrading in the following year, you can use the income from having the yachts on charter to reduce the fixed monthly expenses.
You will not, at first, receive a return on your investment in the same way as, for example, the dividend by buying a share. The purchase strategy of The Yacht Club allows the yachts value to be higher than the paid price, in case, after three years, the partner company chooses to sell the shares either permanently or to purchase larger yachts, the value may be higher than when the yachts was acquired. Another way to consider the return of the investment will be to measure the repayment period in between the investment that you make and the associated costs necessary to drive the yachts, compared to the corresponding total cost of having a similar yacht on charter.
The provider fee covers the concept that The Yacht Club has developed and the availability The Yacht Club has to the individual partner company. Likewise, it covers the investments and costs incurred by The Yacht Club over the last 16 months. The provider fee will ultimately be an amount invested in developing the concept and the activities that relate to our concept. Which means, for the benefit of both the individual partner company and its partners.
The purpose of committing the partner company to charter the yachts out for 22 weeks is that LYCC is, on behalf of the partner company, continuously working to minimize the operating and maintenance costs. The 22 weeks are, in general, determined to be in a fixed period, where LYCC, due to its experience, know when there are good opportunities for chartering. The chartering will most likely happen in the period of time, where the partners have no intention of using the yachts. The periods are determined annually at the annual general meeting and will appear in the booking system.
As a starting point, it is possible to choose to be 9, 15 or 20 people in a partner company at The Yacht Club. The number of people (number of shareholders) depends on how much you want to invest. If you compare the number of shareholders with the chosen yacht category, it will reflect a flexibility that allows more people to experience the dream of owning a super yacht.
Two reasons, we want to minimize the owner’s risk of loss if an event internally or externally causes the yacht to be seized or shipwrecked. For accounting and structural reasons, we have chosen to establish two companies in order to make the administrative tasks in operation, maintenance and charter much more efficient.
No, there is complete tax transparency between the partner company in Denmark and the partner company’s associated operating and maintenance companies at Isle Of Man. The reason why the operating and maintenance companies are physically placed on the Isle Of Man, is that the insurance premium is significantly lower, the charter market for such superyachts is very limited if one cannot act in the international market, and finally, that the competencies of both operation and maintenance of such boats is significant and the costs associated with this for competitive reasons are lower.
You can choose to sell your share, if you no longer wish to own it. However, this requires the board’s consent, which has been introduced to assess the future buyer. For the parties’ share holdings, a pre-emptive right is attached to your share. This means that you must ensure that terms of purchase are sent to the board of the company, who then immediately forward the offer to the other parties. If no parties wish to make use of the pre-emptive right, the purchase right will lapse, and you may sell the shares within 3 months.
You will be invited to an initial meeting where, as an adviser for each of our clients, we will meet your needs with the yachts that we have already evaluated in the relevant category. All the yachts we select in cooperation with an impartial superintendent are structurally very similar, which, of course minimizes the costs if one wants such a solution. Generally, all yachts have a specific line of design which means that significant renovations cannot be made to upgrade a yacht. For this reason, we have already developed a Scandinavian design in close cooperation with our English design partner, meeting the current trend and with a unique quality that will be developed in those yachts that need to be rebuilt before being put in operation.
You can start booking it in the booking system once the yachts are ready. This system is made available to each partner company.
No, the points you earn can only be used for yourself and your family. LYCC takes care of all the practical tasks associated with the rental. It is not possible to lend the yachts out to friends and acquaintances, however, you can easily bring them with you.
You have, as a party, the opportunity to choose between the three of the following destinations for your yachts: Barcelona in Spain, Antibes in France and Split in Croatia. However, The Yacht Club will continuously advise and propose alternative destinations if there are other and better opportunities for economic or risk reasons.
The yachts are gathered at the three destinations to minimize costs and achieve synergy, for example, when manning the yachts during the winter period. Our operations and maintenance tasks can be carried out by the same supplier, when several yachts are assembled. This implies lower prices. In addition, overall savings on port fees are generally achieved.
SIGN UP FOR OUR INFO MEETING
You are very welcome to join our information meetings, if you find the concept and the whole idea behind The Yacht Club interesting. Or, you can attend an individual and more private meeting.
I would like to know more
If you wish to become a part of The Yacht Club, or if you have any questions, The Yacht Club can give you a call.