Malta Ship Registry
7nbsp;Malta Ship Registration
Throughout the centuries, Malta has been an international jurisdiction for ship and yacht registration. Its geographical situation in the middle of the Mediterranean positions Malta in an ideal location for maritime business. Currently, Malta is the second largest Maritime Flag in Europe.
Ship registration in Malta is regulated by the Merchant Shipping Act.
There are many benefits for registering vessels in Malta:
1. The geographic position in the middle of the Mediterranean situated between Europe and Africa.
2. Vessels may be registered in the name of legally constituted corporate bodies or entities irrespective of nationality, or by European Union citizens.
3. Low company formation, ship registration and tonnage tax costs; progressive reduction in registration and tonnage tax costs for younger ships
4. No trading restrictions
5. No restriction on the sale or transfer of shares of a company owning Maltese ships.
6. No restrictions on the sale and mortgaging of Maltese ships.
7. Administrative service of Transport Malta working twenty four hours, seven days a week.
8. Preferential treatment in certain ports to Maltese ships.
To be eligible for registration in Malta, the vessel must be owned by a person satisfying these conditions:
1. Registrant must be a European citizen or a European company;
2. If the registrant is a European Citizen or a Maltese company owned by non-EU citizens it must appoint a registered agent.
The type of vessels which can be registered:
· All kind of vessels can be registered;
· Ships under construction may also be eligible
· Vessels that are 15 years old but less than 20 years are required to be inspected.
· Vessels older than 25 years are required to the approval from the Registrar.
Registration procedure
The registration is divided into two phases: provisional registration and permanent registration. Both registrations have the same effects. Provisional registration is granted for a period of 6 months.
To acquire provisional registration, the following documents are necessary:
· An applicant for registration by the owner or an authorised representative including, if required, an application for change of name of vessel;
· Identification documents of the signatory on the documents and a power of attorney if necessary;
· A proof of qualification to own a Maltese vessel;
· In the cases of non-EU residents, proof of appointment of the resident agent;
· An application for Ship Radio Station License;
· A declaration of ownership of the vessel;
· Certificate of compliance for commercial vessels;
· Evidence of seaworthiness: in the case of trading vessels, confirmation of class with a recognised organisation, and information of the ship statutory certification including Company ISM compliance.
· Where applicable, application for Minimum Safe Manning certificate.
· Payment of initial registration fees and annual tonnage tax.
For permanent registration, the following documents have to be sent:
· A builder’s certificate or a bill of sale as applicable;
· Where applicable, a cancellation of the registry certificate from the last country of registry;
· In the case of SOLAS ships, a copy of the last updated Continuous Synopsis Record issued by the administration where the ship was last documented;
· A certificate of Survey and a copy of the International Tonnage certificate issued by an approved surveyor of ships;
· A CE Marking certificate;
· Evidence that the vessel has been marked according to the law.
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.
Bareboat charters registered in Malta have the same rights, privileges and obligations of other Maltese boats.
A bareboat charter registration is supposed to last all the duration of the bareboat charter or until the expiry date of the underlying registration.
Shipping organisations and Tonnage Tax-Ships
A vessel which is of more than 1000 net tonnage and is owned entirely by a shipping organisation is eligible to pay tax according to tonnage.
Organisations can be qualified as a shipping organisation if they have the following principal objects:
· the ownership, operation (under charter or otherwise), administration and management of a ship or ships registered as a Maltese ship or under the flag or another ship in terms of the Merchant Shipping Act and the carrying on of all ancillary financial, security and commercial activities in connection therewith.
· the holding of shares or other equity interests in entities, whether Maltese or otherwise, established for any of the purposes stated in these paragraphs and the carrying on of all ancillary financial, security and commercial activities in connection therewith; and
· the raising of capital through loans, the issue of guarantees or the issue of securities by the company when the purpose of such activity is to achieve the objects stated in these paragraphs for the shipping organisation itself or for other shipping organisations within the same group.
The benefits of setting up ship organisations in Malta are as follows:
· No tax charged or payable on income, to the extent that such income is derived from shipping activities, of a licensed shipping organization;
· No tax charged or payable on any income, profits or gains of a licensed shipping organisation derived from the sale or other transfer of a tonnage tax ship or from the disposal of any rights to acquire a ship which when delivered or completed would qualify as a tonnage tax ship;
· No tax charged or payable on any gain arising on the liquidation, redemption, cancellation, or any other disposal of shares, securities or any other interest, including goodwill, held in any licensed shipping organization owning, operating, administering or managing a tonnage tax ship while she was a tonnage tax ship;
· No stamp duty charged on the registration of a tonnage tax ship under the Merchant Shipping Act and other registrations relating to a tonnage tax ship;
· No stamp duty charged on the sale or other transfer of a tonnage tax ship or any share thereof;
· No stamp duty charged on the issue or allotment of any security or interest of a licensed shipping organisation or the purchase, transfer, assignment or negotiation of any security or interest of any licensed shipping organisation or other company;
· No stamp duty charged on the registration of any mortgage or other charge over or in relation to any ship or licensed shipping organisation, any transfer or discharge thereof, any receipt relative thereto, and any assignments granted in connection therewith; and
· No stamp duty charged on the assignment of any rights and interests, or the assumption of obligations in respect of any ship or share thereof.
For more information and assistance on the registration of any type of sea moving vessel in Malta, please contact us on info@virtusmalta.com and one of our maritime specialists will be glad to assist you.
Ship registration in Malta is regulated by the Merchant Shipping Act.
There are many benefits for registering vessels in Malta:
1. The geographic position in the middle of the Mediterranean situated between Europe and Africa.
2. Vessels may be registered in the name of legally constituted corporate bodies or entities irrespective of nationality, or by European Union citizens.
3. Low company formation, ship registration and tonnage tax costs; progressive reduction in registration and tonnage tax costs for younger ships
4. No trading restrictions
5. No restriction on the sale or transfer of shares of a company owning Maltese ships.
6. No restrictions on the sale and mortgaging of Maltese ships.
7. Administrative service of Transport Malta working twenty four hours, seven days a week.
8. Preferential treatment in certain ports to Maltese ships.
To be eligible for registration in Malta, the vessel must be owned by a person satisfying these conditions:
1. Registrant must be a European citizen or a European company;
2. If the registrant is a European Citizen or a Maltese company owned by non-EU citizens it must appoint a registered agent.
The type of vessels which can be registered:
· All kind of vessels can be registered;
· Ships under construction may also be eligible
· Vessels that are 15 years old but less than 20 years are required to be inspected.
· Vessels older than 25 years are required to the approval from the Registrar.
Registration procedure
The registration is divided into two phases: provisional registration and permanent registration. Both registrations have the same effects. Provisional registration is granted for a period of 6 months.
To acquire provisional registration, the following documents are necessary:
· An applicant for registration by the owner or an authorised representative including, if required, an application for change of name of vessel;
· Identification documents of the signatory on the documents and a power of attorney if necessary;
· A proof of qualification to own a Maltese vessel;
· In the cases of non-EU residents, proof of appointment of the resident agent;
· An application for Ship Radio Station License;
· A declaration of ownership of the vessel;
· Certificate of compliance for commercial vessels;
· Evidence of seaworthiness: in the case of trading vessels, confirmation of class with a recognised organisation, and information of the ship statutory certification including Company ISM compliance.
· Where applicable, application for Minimum Safe Manning certificate.
· Payment of initial registration fees and annual tonnage tax.
For permanent registration, the following documents have to be sent:
· A builder’s certificate or a bill of sale as applicable;
· Where applicable, a cancellation of the registry certificate from the last country of registry;
· In the case of SOLAS ships, a copy of the last updated Continuous Synopsis Record issued by the administration where the ship was last documented;
· A certificate of Survey and a copy of the International Tonnage certificate issued by an approved surveyor of ships;
· A CE Marking certificate;
· Evidence that the vessel has been marked according to the law.
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.
Bareboat charters registered in Malta have the same rights, privileges and obligations of other Maltese boats.
A bareboat charter registration is supposed to last all the duration of the bareboat charter or until the expiry date of the underlying registration.
Shipping organisations and Tonnage Tax-Ships
A vessel which is of more than 1000 net tonnage and is owned entirely by a shipping organisation is eligible to pay tax according to tonnage.
Organisations can be qualified as a shipping organisation if they have the following principal objects:
· the ownership, operation (under charter or otherwise), administration and management of a ship or ships registered as a Maltese ship or under the flag or another ship in terms of the Merchant Shipping Act and the carrying on of all ancillary financial, security and commercial activities in connection therewith.
· the holding of shares or other equity interests in entities, whether Maltese or otherwise, established for any of the purposes stated in these paragraphs and the carrying on of all ancillary financial, security and commercial activities in connection therewith; and
· the raising of capital through loans, the issue of guarantees or the issue of securities by the company when the purpose of such activity is to achieve the objects stated in these paragraphs for the shipping organisation itself or for other shipping organisations within the same group.
The benefits of setting up ship organisations in Malta are as follows:
· No tax charged or payable on income, to the extent that such income is derived from shipping activities, of a licensed shipping organization;
· No tax charged or payable on any income, profits or gains of a licensed shipping organisation derived from the sale or other transfer of a tonnage tax ship or from the disposal of any rights to acquire a ship which when delivered or completed would qualify as a tonnage tax ship;
· No tax charged or payable on any gain arising on the liquidation, redemption, cancellation, or any other disposal of shares, securities or any other interest, including goodwill, held in any licensed shipping organization owning, operating, administering or managing a tonnage tax ship while she was a tonnage tax ship;
· No stamp duty charged on the registration of a tonnage tax ship under the Merchant Shipping Act and other registrations relating to a tonnage tax ship;
· No stamp duty charged on the sale or other transfer of a tonnage tax ship or any share thereof;
· No stamp duty charged on the issue or allotment of any security or interest of a licensed shipping organisation or the purchase, transfer, assignment or negotiation of any security or interest of any licensed shipping organisation or other company;
· No stamp duty charged on the registration of any mortgage or other charge over or in relation to any ship or licensed shipping organisation, any transfer or discharge thereof, any receipt relative thereto, and any assignments granted in connection therewith; and
· No stamp duty charged on the assignment of any rights and interests, or the assumption of obligations in respect of any ship or share thereof.
For more information and assistance on the registration of any type of sea moving vessel in Malta, please contact us on info@virtusmalta.com and one of our maritime specialists will be glad to assist you.
