SHIP & YACHT REGISTRATION UNDER THE MALTA FLAG


The Merchant Shipping Act
The registration and the operation of vessels under the Malta Flag is regulated by the Merchant Shipping Act, a law based mainly on the merchant shipping legislation of the United Kingdom. The full Act is available on request.

Why register in Malta?
Ship-owners who decide to register in Malta enjoy several advantages including tax concessions.


Advantages vis-à-vis Owner/s

  • One or more resident and/or non-resident person and/or corporate body can incorporate a company under Laws of Malta and having its principal place of business in Malta by means of a registered office in Malta, enables the company to own a Maltese ship.

  • The Maltese Body corporate must have at least one director not necessarily Maltese.

  • Incorporation and maintenance of a company is quick and inexpensive and on submission of all documentation incorporation is possible in 24 hours.

  • There is no restriction on the sale or transfer of shares of a company owning a Maltese ship.

  • There are no Maltese Exchange Control restrictions under the (Central Bank) regulations insofar registration, mortgaging, sale and operation of Maltese ships, the distribution of dividends/profits and repatriation of funds.

    • Advantages vis-à-vis the Malta Maritime Authority

  • The Authority enjoys a good reputation as a flag of choice and confidence.

  • The local political stability and consensus makes MMA efficient and practical.

  • Ship registration and de-registration in Malta is quick and competitive.

  • There are no restrictions on the sale of ships registered in Malta to foreign nationals.

  • There are no restrictions on the mortgaging of ships registered in Malta in favour of foreign nationals.

  • There are no trading restrictions on Maltese ships.

  • No restrictions whatsoever are imposed on the nationality of the master, certified officers and crew employed on Maltese ships.

  • No inspections are necessary for vessels under 15 years, whereas vessels aged between 16 and 20 years may carry out an inspection within one month of provisional registration, without incurring any inspection fees.

  • The Malta Maritime Authority - MMA gives a 24 hour service, seven days a week. A Registrar and a technical advisor are on call after office hours 7 days a week for urgent requirements.

  • A Maritime Agreement is in force with the Russian Federation whereby Maltese flagged vessels calling at Russian Ports receive preferential treatment especially in respect of Port dues and taxes.

  • Although law requires a deletion certificate from the previous flag, Carving & Marking Note and Bill of Sale within thirty days, this period may be unofficially extended.


    • Advantages vis-à-vis Tax Benefits for Exempt Ships

  • Ships having a tonnage exceeding 1000 net tons are considered exempt

  • Owners and or operators shall be exempt from Income Tax on any gains or profits derived from the ownership or operation of the exempted ship

  • Consequently no Income Tax shall be payable on dividends paid by the company to the shareholders if such dividends are paid out of the gains or profits mentioned.

  • No Succession and Donation duties are payable on shares of the owning company

  • No stamp duty shall be payable in respect of any instrument involving the registration of an exempted ship (such as the Bill of Sale); and the allotment of any newly issued shares, transfer, assignment or negotiation of any share or stock of any such company

  • Tax treaties with most major countries. An up-to-date list of countries where a tax treaty is in force is available on request.

    • Companies as owners and, or operators of Exempt Ships have to sign a yearly declaration in lieu of filing a Tax Return.

    Eligibility for Registration
    All types of vessels from pleasure yachts to oil rigs, may be generally registered under the Malta flag, provided they are wholly owned by a Maltese body corporate established for the purpose of registering a vessel under the Malta flag. As a rule ships aged 25 years and over are not being considered for registration unless the Registrar General grants permission. The law also provides for the registration of vessels still under construction.


    Company Formation
    The incorporation and maintenance of a Maltese company for the purpose of registering a vessel under the Maltese flag is quick and inexpensive. On submission of all documentation incorporation is possible in 24 hours.

    Basic requirements are a minimum of two shareholders in person and/or as a company, a minimum of one director of any nationality and a minimum of Lm500 capital of which 20% is to be paid up. To satisfy the number of shareholders condition the provision of a nominal shareholder is part of our service. Documentation requirements are the completion and return of our application form supported by a bank recommendation and a certified copy of Passport/s and a limited Power of Attorney from each prospective shareholder.


    Registration of a Vessel
    We take care to register the vessel provisionally under the Malta Flag for a period of six months (extendible to one year) during which all documentation must be submitted for the issue of a permanent certificate of Registration.