With new developments especially in crimes like piracy, the international community sought to regulate more its seas. In fact, recently the registration of ships globally became more complex reflecting the complicated and more stringent international regulations. Nonetheless, Malta was always at the forefront to ratify the International Maritime Conventions ensuring that the law is always respected. In fact, Malta is listed on the ‘white list’ of the various ‘memoranda of understandings’ that apply in different maritime regions.
According to recent statistics, Malta has the largest shipping registry in Europe (in terms of tonnage) and the seventh (7th) largest in the world overall. 1 ’ What are the advantages to register your vessel in Malta, and being on the largest shipping registry in Europe?
Ship registration in Malta is relatively quicker than other countries, in fact, the maximum period to register a ship provisionally is only 6 months during which period all documentation needs to be finalized. The serious and efficient Maritime Administration makes this process smoother, ensuring that clients receive the best service, in fact, they are available 24 hours a day, 5 days a week.
In addition, all vessels are allowed to be registered, and not just ships, including oilrigs, platforms, and barges. Nonetheless, the registration does not impose any limitations on the individual or company registering. In fact, there are no restrictions on the nationality of workers like master, officers, and crew serving on Maltese vessels, therefore allowing full flexibility to the owner as long as one has rectified the Declaration of Maritime Labour Compliance and applied for the Minimum Safe Manning Certificate. In addition, there are no other restrictions on sale or mortgaging of Maltese registered vessels.
Finally and probably the most advantageous principle is the tonnage tax regime, which specifies that ships under this regime will pay tonnage tax according to the EU’s community guidelines on State Aid to Maritime Transport. Hence, there is an exemption from payment of income tax and other taxes under Maltese National law. This is also extended to the dividends paid by the owning company to its shareholders.
Who is Eligible to Register a Vessel?
The Maltese ship registration process allows a vessel or ship to be registered under Malta\ Flag provided it is owned by persons qualified to own a ship. Such persons include:
- Maltese or EU residents;
- Body Corporates established in Malta;
- An international owner and such owner would appoint a resident; or
- Setting up a Maltese shipping company specifically for the purpose of owning a ship.
The moment the entity is identified, the rest of the application process would come together gradually. The application for registration shall be done by the owner or authorized representative to start the procedure with the proof of qualification whereby if it is a body corporate one would need the document of incorporation. In addition, there is also the need for a declaration of ownership made in front of the registrar by the same owner. Other documents will be requested including the bill of sale or any other document by which the vessel needs to be transferred amongst others. Where valid appropriate Convention certificates are NOT in place, the ship will be issued with a non-operational certificate.
This shall not be construed to be as advice but shall merely serve as a brief description of the process needed to register a vessel. If you would like to discuss this further please do not hesitate to contact us on [email protected] .