SHIP REGISTRATION IN MALTA


Muscat Azzopardi and Associates (MA&A) offer full legal and administrative support for all aspects of ship registration.

A vessel may be registered under the Maltese flag only if it is wholly owned by a Maltese citizen, or by a company registered in Malta.

The first step is to register a company in Malta, with the express object of ship registration. There are no nationality requirements as to both the shareholders and directors and usually the real ship or yacht owner will be the shareholder and director of the company. Our usual procedure is to have the registered office of the newly formed company at our own address (unless the client instructs us otherwise) and MA&A is also listed as the company’s authorized representative in Malta seeing to all matters involved with the company’s administration in Malta.




THE ADVANTAGES OF REGISTERING A SHIP IN MALTA:


• Low costs and swift registration of the owning or operating company and of the vessel.

• Complete exemption from all local taxes favour owners, charterers and financiers of Maltese ships in respect of profits derived from the ownership, sale, operation, chartering and financing of Maltese ships;

• Exemption from all duties and other charges in respect the sale or transfer of a ship and the allotment of any share or stock of a company owning such a ship; and from succession duties, capital gains tax, VAT and also in respect of exchange control formalities.

• No restriction on nationality of Masters, owners and crew.

• No restrictions on sale and mortgaging of Maltese ships.

• It is possible to register ships which are under construction as well as other marine structures such as oil floating docks, floating hotels pontoons and barges.

• No trading restrictions and preferred treatment for Maltese ships in a large number of foreign ports.

• Simple procedure for the closing of the registry.

• Easy and immediate access to the decision makers of the shipping industry minimizing costly delays.

• Bareboat charter registration both inwards and outwards; and the certificate of registry may be issued in the name of the vessel's charterer (including a time charterer).

• Low costs, including registration, tonnage dues and professional fees both for the registration and administration of company and vessel.

• Time necessary for the registration of the company is 24 hours. The vessel can be registered on the next day.

• Adequate safeguards to the mortgagees making the finance of Maltese vessels more secure and attractive for the banks.



OVERVIEW:


Malta has one of the largest ship registries worldwide and the main reason for such success is that Maltese registered ships benefit from various advantages.

A Maltese registered ship is one owned by a Maltese citizen or by a Maltese body corporate. The latter option is usually opted for. A company is easily registered and at low costs. The vessel must be transferred to the company and this is exempted from registration tax. Registration under the Maltese flag offers the following benefits:-

For those vessels which under Maltese Law are defined as exempt ships, which are those that exceed 1000 net tones, the ship owning company is exempt from income tax and from all other profits derived from the commercial activity of the vessel. The exemption is also extended on the distribution of dividends and thus the shareholder who receives the profits of the ship owning company is also exempted from taxation.

Maltese law also offers tax exemptions on all types of transfer of shares of the company and also on the allotment of new shares. There are also no restrictions on such share transfers.

There is also no restriction on the mortgaging of Maltese ships. Mortgages are protected by Maltese law making it adequate for financing.

The above advantages may also be benefited from by vessels under 1000 net tones on application. Every application is treated on its own merit yet pleasure yacht may never qualify for such exemption.

Besides the above fiscal incentives there are no restrictions on the Nationality of the master, officers and crew of the ship, nor any trading restrictions on Maltese ships.

Malta also has bilateral agreements with foreign governments where Maltese Ships receive preferential treatment in respect of Port charges and taxes.

The Malta Maritime Authority also offers a twenty four hours service seven days a week providing emergency services.

All types of vessels, from pleasure yachts to oil rigs, may be registered provided that, inter alia, they are either wholly owned by Maltese citizens or by a Maltese company; a Maltese ship may also be bareboat charter registered under another flag.

There are neither trading restrictions nor age restrictions. However:

Ships of 15 years and over, but under 20 years, must pass an inspection by an authorised flag state inspector before or within a month of provisional registration; and

Ships of 20 years and over but less than 25 years must pass an inspection by an authorised flag state inspector prior to being provisionally registered.

As a rule trading ships of 25 years and over are not registered.

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

Provisional registration has a validity of six months, although this can be extended by a further six months; by this time all the documentation has to be completed for permanent registration. This includes, in particular, evidence of ownership and of cancellation of former registry. Authority to operate still remains linked to conformity with the relative manning, safety and pollution prevention international standards.


PROVISIONAL SHIP REGISTRATION


The requirements for such registration are:-

1. A copy of the statute of the Company which MA&A shall register offering director services if required, and all ancillary services.

2. A duly completed application for registration (which we shall provide by Fax or Email)

3. An application for a change of name if required

4. A copy of the ships 1969 International Tonnage Certificate

5. Evidence of seaworthiness of the ship, and in case of trading vessels

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

Confirmation of class

7. The completion of application form to obtain a minimum safe manning certificate

8. A declaration of ownership made by the ship owner or by an authorized representative.

9. Class payment of initial and annual registration fees.


PERMANENT SHIP REGISTRATION

The following documents must be submitted during provisional registration
(six months extendable to a year):

1. A builder’s certificate in case of first registration, or a deletion certificate from the last port registry.

2. A bill of sale or any other document by which the vessel was transferred to the applicant for registry free from encumbrance;

3. An endorsed copy of the Ship's Carving and Marking note by a recognized surveyor or a Maltese Consul, which note is issued by the Malta Maritime Authority upon provisional registration.

4. A certificate of survey and a copy of the tonnage certificate certifying that the vessel has been surveyed in accordance with Maltese regulations;

5. A crew list (at least one).

6. Copies of officer’s certificates;

7. Application for Wireless Telegraphy Apparatus if required.



COSTS:

The main criteria when determining the costs of registration are the Gross Tonnage of the ship, the type of ship, and the date of manufacture of the ship, and therefore how old the ship is.

The Malta Maritime Authority has an official scheme whereby the prices are regulated in detail and they are determined in line with the above mentioned criteria.

It is important to note that depending on the type of ship, not only the price of registration varies but also the price of an annual renewal.

MAIN TYPES OF VESSELS:

Fishing Vessels less than 24 metres length over all and these are divided between commercial and recreational vessels (See Section A attached)

All other ships of less than 24 metres length over all and these are divided between those with less than 50 GT and more than 50 GT (See Section A attached)

Pleasure yachts of 24 metres length over all or more (See Section A attached).

All other ships of 24 metres length over all or more in which case the prices vary according to net tonnage and which are also subject to a reduction or increase in price depending on the age of the ship (See Sections B and C attached).



OUR COSTS:

Registration Fees of company around 1000 Euros depending on the amount of share capital.

Minimum paid up share capital 250 Euros

Legal fees and costs of registration 1000 Euros

Legal fees for provisionally registering boat/ship 1,200 Euros

Legal fees for permanent registration 800 Euros

This does not include the Malta Maritime Authority costs for registration, a copy of which is attached.


Please do not hesitate to contact Muscat Azzopardi and Associates for further information.