Ship Registration under the Maltese Flag

The Malta Flag is a flag of confidence and a flag of choice; its good standing evidenced by the number of reputable ship owning and ship management companies which register their ships in Malta. The Malta international ship register is a well-established, dynamic maritime centre; providing a wide range of maritime services. The Malta Flag is on the White List of the Paris Memorandum of Understanding and the Tokyo Memorandum of Understanding as well as being on the Low Risk Ship List of the Paris Memorandum of Understanding. In this regard Tankship Management Ltd. is in an ideal position to assist ship owners to register their vessels under the Maltese Flag, as the Company is based in Malta. Additionally choosing Tankship Management Ltd. presents significant advantages to prospective clients, as the registration process would be conducted by a specialized team within the Company with considerable experience in the Maritime industry, in other words dealing with Marine professionals from the commencement to the conclusion of the registration process. Registering ships under the Maltese flag presents owners with significant incentives, including amongst others:
  • Complete exemption from the Maltese national tax regime;
  • No restrictions or taxes on the sale or transfer of shares of a company owning Maltese registered ships;
  • No restrictions or taxes on the sale and mortgaging of Maltese registered ships;
  • Low company formation and ship registration costs.
Ship registration under the Malta flag and the operation of same is regulated by the Malta Merchant Shipping Act of 1973 (as amended). Any type of vessel can be registered, provided that it is fully owned by a legally constituted corporate body or entity irrespective of nationality. Additionally ships can be registered by European Union citizens. The formation of a Maltese company is a straightforward operation; with there being no nationality requirements as to both shareholders and directors and the principal place of business need not be located in Malta. Limited liability shipping companies are formed by means of a public deed or private writing, with the minimum amount of subscribed capital required by law being €1,165 of which 20% must be paid up. A company can be registered in a few hours on the basis of Power of Attorney sent by shareholders to their representatives in Malta, together with the following information:
  • The proposed company name; a name can be reserved for three months;
  • The registered address of the proposed company; this can be the same as that of the representative in Malta;
  • A minimum of two shareholders, who could be either foreign individuals or corporate bodies;
  • The distribution of proposed company shares;
  • The names and details of the directors of the proposed company;
  • Details of voting, capital or class rights and indication of any local proxies.

An outline of the procedure to follow when registering a ship under the Maltese Flag is listed hereunder:

  • A vessel is first registered provisionally for six months; during which period all required documentation is to be finalized;
  • The requirements for provisional registration are:
  • An application for registration by the owner or authorized representative including, if required, application for change of ship’s name;
  • A proof of qualification to own a Maltese ship; in the case of a corporate body, the document of incorporation;
  • In the case of non-Maltese owners, the appointment of a resident agent;
  • A copy of the current Ship’s International Tonnage Certificate (if applicable);
  • A declaration of ownership made in front of the Registrar by the owner or his authorized representative;
  • Evidence of seaworthiness, through confirmation of class with a recognized organization and information on the state of the ship’s Statutory certification, including Company ISM compliance (usually ascertained through a copy of the Company Document of Compliance);
  • A request for the Administration to authorize an appropriate recognized Classification Society to issue the Ship’s statutory certificates. The Ship’s Owner can select any Classification Society which is included in list of Malta Flag authorized Classification Societies;
  • A copy of the Maritime Labour Certificate and Declaration of Maritime Labour Compliance – Part 1;
  • An application for a Minimum Safe Manning Certificate;
  • An application for a Ship Station Radio License;
  • Payment of initial registration and annual tonnage fees.
  • Where there was previous ownership a bill of sale or any other document by which the vessel was transferred to the applicant for registry;
  • Cancellation of registry certificate issued by ship’s last Flag Administration;
  • Copy of ship’s last Continuous Synopsis Record issued by ship’s last Flag Administration;
  • Certificate of Survey and a copy of the International Tonnage Certificate issued by a Malta Flag approved surveyor;
  • Evidence that the ship has been marked in accordance with the law.
Should any statutory certificates not be in place on the ship at the time of registration, a Non-Operational Certificate of Registry would be issued until the situation would be rectified. A certificate of Malta Registry is renewable annually before or on the anniversary date of the Maltese registration.