MALTA FLAG

Ship registration and the provision of all ancillary services is the responsibility of the Merchant Shipping Directorate of the Malta Maritime Authority. The registration and the operation of Maltese ships is regulated by the Merchant Shipping Act, a law based mainly on UK legislation, but revised and amended in 1986, 1988 and 1990.

Company Formation Procedure
The formation of a Maltese shipping company is the first step to be taken in a Malta flag registration. A limited liability company is uncorporated upon registration of the Memorandum and Articles of Association at the Registry of Partnerships. The minimum amount of subscribed capital required is Lm500, of which 20% must be paid up.

A shipping company must have not less than two shareholders who can be foreign bodies corporate or foreign individuals. Also, the principal place of business need not be located in Malta.

Vessel Registration
The procedure for the registration of a ship is a well defined and relatively straight forward procedure.

Provisional registration, which in terms of law has the same effect as the so called permanent registration, can be effected very quickly. Authority to operate a ship, however, will only be given once the Administration is satisified that the vessel conforms to all the standards required by the relative international conventions.

Requirements for provisional registration:
An application for registration by the owner or an authorised representative accompanied, if required, by an application for a change in name.

Proof of qualification to own a Maltese ship - in the case of a body corporate, the memorandum and articles of association.

A decleration of ownership made before the Registrar by the owner or an authorised representative.

evidence of seaworthiness - in the case of trading vessels, confirmation of class.

Payment of initial and annual registration fees.

Documents to be submitted during provisional registration:

  • A builder's certificate if the vessel has not been registered elsewhere - otherwise, a bill of sale or any other document by which the vessel was transferred to the applicant for registry.
  • A cancellation of registry certificate from the last country of registry.
  • A certificate of survey and a copy of the tonnage certificate certifying that the vessel has been surveyed in accordance with Maltese regulations.
  • Evidence that the vessel has been marked in accordance with the law.
  • At least one crew list accompanied by photocopies of the officers' certificates of competency.

The following classification societies are authorised to carry out survey tonnage and statutory safety certification of Maltese Ships on behalf of the Maltese Administration:

AMERICAN BUREAU OF SHIPPING
BUREAU VERITAS
DET NORSKE VERITAS
GERMANISHER LLOYD
HELLENIC REGISTER OF SHIPPING
LLOYD'S REGISTER OF SHIPPING
NIPPON KAIJI KYOKAI
REGISTRO ITALIANO NAVALE

The following classification societies have partial recognition which is only applicable in certain circumstances on the specific authorisation of the Merchant Shipping Directorate:

CHINA CLASSIFICATION SOCIETY
CROATIAN REGISTER OF SHIPPING
KOREAN REGISTER OF SHIPPING
MARITIME REGISTER OF SHIPPING

Advantages
The law is designed to offer the following substantial advantages to shipowners registering their ships under the Malta flag such as:

  • Low company formation and ship registration costs.
  • Complete tax exemption to owners, charters and financiers of Maltese ships over 1000 net registered tons - (exemption may also be extended to smaller ships).
  • No restrictions on the nationality of the shareholders and directors of Maltese companies, and of the master, officers and crew of Maltese Ships.
  • No restrictions on the sale and mortgaging of Maltese Ships.
  • No restrictions on trading and foreign port entry.
  • No restrictions on the sale or transfer of shares of a company owning Maltese Ships.

Furthermore, offshore companies operating ships enjoy all the exemptions and benefits granted to other offshore companies registered in Malta, such as:

  • Non-disclosure of shareholders and directors.
  • Exemption from the requirement to have accounts audited and also to file an annual return with the Registrar of Partnerships.
  • Exemption from any exchange control.
  • Reduced corporate registration fees.

Bareboat Charter Registration
Maltese Law provides both for bareboat charter registration of foreign ships under the Malta flag and also for the bareboat charter registration of Maltese ships under a foreign flag. Vessels so registered enjoy the same rights and privileges, and have the same obligations, as any other ship registered in Malta.

The Malta flag is today a flag of choice. Its good standing is evidenced both by the number of ship-owning and ship-management companies of repute which register their their ships in Malta and also by the confidence shown by the leading international banks and financiers who recommend the Maltese register. Malta's flag of confidence is further enhanced by the placing of our open ship register which ranks amongst the top eight registers in the world.




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