Ship Registration

Malta has built a strong legal and regulatory framework, which has led it to be one of the most attractive flags for shipowners around the world.

Malta has a large shipping industry, based on its strategic location. Furthermore, as a former British colony, it has a legacy of laws and regulations rooted in English maritime law and tradition. As a result, Malta’s laws and regulatory environment have led it to be one of the most attractive flags for shipowners around the world.

Malta’s shipping register is not only Europe’s largest, but one of the largest in the world. As Malta is a full member of the EU, all kinds of merchant ships (tankers, floating platforms, bulk carriers, to name a few) can be registered under the Malta flag, or if used in national waters only, as commercial vessels under the Commercial Vessels Code.

Whether as a port of call, or for ancillary services such as dry-docking, bunkering and trans-shipment operations, Malta’s location and EU membership provide strategic advantages in this industry. Its wide-spanning network of service providers means that the jurisdiction not only provides a robust framework for the registration and operation of merchant ships, but also acts as a one-stop-shop for a full range of services for shipowners.

Various fiscal and corporate advantages exist: on the forefront of these is the Tonnage Tax Scheme, which was revised in recent years to remain in line with EU law. The relatively straightforward process to incorporate a Malta shipping company under the Merchant Shipping Act, and the absence of restrictions on nationality of owners and crew for Maltese vessels are further advantages.

Upon successful submission of all remaining documents e.g., survey documents or documents proving that the vessel has all the required markings, registration is then converted to permanent registration.

Ships registered under the Maltese flag are capable of being subject to a mortgage, which is a registrable charge on the vessel denoting the claim of a creditor.

Mortgages rank according to the order in which they are filed, so that the time of filing is also noted.

The Maltese flag permits the bareboat charter registration of foreign vessels under the Malta flag, or the foreign bareboat charter registration of Maltese vessels. The main requirement is the compatibility of the two legal systems.

Bareboat chartered ships under the Maltese flag enjoy the same rights and privileges as ships registered in Malta and have the same obligations.

Ships that are still being built, or equipped, are capable of being registered under the Malta flag.

This ensures the protection of the rights of both the builder and the prospective owner in the transaction.

Malta has adopted all the major maritime conventions including SOLAS, MARPOL, the Tonnage Convention and COLREGs.

Malta-registered vessels must always carry valid statutory certificates, which are issued on behalf of the Maltese government by recognised organisations, such as specialised organisations that may be engaged to provide services of issuing survey, tonnage and convention certificates in compliance with international requirements.

While it is not strictly necessary for a ship to be owned by a Malta company, companies formed under the Malta Merchant Shipping Act with the objective of owning and operating sea vessels, offer corporate and fiscal advantages to the discerning shipowner.

Such companies have a simple set-up, tailored to the particular characteristics of maritime enterprise, including the appointment of a special attorney who is authorised to carry out certain functions in respect of the ship’s registration and certification.

Furthermore, they may obtain recognition as a ‘shipping organisation’ in terms of the Malta Merchant Shipping Act, and thus benefit from Malta’s Tonnage Tax scheme, which is of significant advantage to healthy shipping operations.

The application of VAT treatment to certain expenses in connection with the ownership and operation of ships, including certain repairs and maintenance, is of great advantage to an operation’s cash flow.