Profits Ahoy – Set Up a Yacht Charter Business in India
3E Accounting explains how to set up a yacht charter business in India and sail away to entrepreneurial success.
Yachts are a symbol of luxury, but they are also quite accessible to the general populace. Their popularity has grown exponentially over the years, and this industry is expected to show almost 6% Compound Annual Growth Rate (CAGR). India has eleven major ports and six thousand kilometres of rugged coastline that make sailing a widespread activity. For entrepreneurs on the lookout for potential business ideas, here’s how to set up a yacht charter business in India.
Sailing the High Seas to Success
The global yachting industry has become a lucrative market within the past decade. Statistics attribute this to people having more disposable income and choosing to indulge in luxury experiences. The Asia Pacific region is seen as the fastest emerging market. In India, government initiatives such as Incredible India are driving the tourism sector, which includes yachting.
To set up a yacht charter business in India, its best to have a business plan ready. Explore viable business models such as sightseeing or water sports. You can even decide to have a fleet of vessels that cater to private functions or charter out to sailing schools.
Research should include the type of yachts that you are considering for your business as this will affect investment as well as licensing. Categories of yachts include:
- Cruising Yacht
- Sailing Dinghies or Day Sailing Yacht
- Weekender Yacht
- Luxury and Racing Yacht
Once you have chosen the most suitable business model, you will need to register your company with the Ministry of Corporate Affairs or MCA. Company legal structures include:
- Private Limited Company (PLC)
- Public Limited Company (PC)
- Limited Liability Partnership (LLP)
- Partnership Firm
- One Person Company (OPC)
After receiving your Certificate of Incorporation, it’s best to get all relevant tax registrations done, which include VAT, GST and service tax. Your company will also need a Permanent Account Number (PAN) & Tax Deduction & Collection Account Number (TAN). Directors of your company will need to acquire:
- A Digital Signature Certificate (DSC
- A Director Identification Number (DIN)
Yacht registration and licensing falls under the purview of the Marine Mercantile Department, the port authority as well as the state maritime board. Depending on your location, State and Central approvals may be needed. Some of the approvals include:
- Declaration of Yacht Ownership
- The permit from the Director-General of Shipping
- Certificate of Survey
- Certificate of Registry
- Port Clearances
- Radio License
- Insurance
Navigating the Legalities
There is still much ambiguity involved in the process to set up a yacht charter business in India. Laws and regulations differ from state to state, and the Central Government also has its own guidelines. Hence, it is recommended that you engage professionals with proper track records in getting the necessary approvals and permits. 3E Accounting is well versed in company incorporation procedures and can help streamline the entire process right up to licensing.
Contact 3E Accounting today to enquire about our customizable business solutions.
