Ship Registration Procedure

A Quick and Efficient Operation

All types of vessels, from pleasure yachts to oil rigs, including vessels under construction, may be registered, provided that, inter alia, they are wholly owned by legally constituted corporate bodies or entities irrespective of nationality, or by European Union citizens; 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 under 25 years, are required to 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.

A vessel is first registered provisionally under the Malta flag for six months (extendible for a further period, or periods not exceeding in the aggregate six months) during which period all documentation needs to be finalised. 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.

Requirements for provisional registration:

• An application for registration by the owner or an authorised representative including, if required, an application for change of name of ship;
• Proof of qualification to own a Maltese ship; in the case of a body corporate, the memorandum and articles of association;
• In the case of non Maltese owners, appointment of a resident agent;
• A copy of the ship's International Tonnage Certificate, where applicable;
• A declaration of ownership made in front of the Registrar by the owner or an authorised representative;
• Evidence of seaworthiness; in the case of trading ships, confirmation of class, with a recognised organisation, and information of the ship statutory certification including company ISM compliance;
• Where applicable, request for the Administration to authorise the appropriate recognised classification society to issue the ship's and the company statutory certificates;
• Where applicable, application for Minimum Safe Manning Certificate;
• Application for Ship Radio Station Licence;
• Payment of initial registration fees and annual tonnage tax.

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 for registry;
• A cancellation of registry certificate from the last country of registry, showing vessel to be free from encumbrances or otherwise;
• In the cases of SOLAS ships, copy of the last updated Continuous Synopsis Record issued by the Administration where the ship was last documented;
• Certificate of Survey and a copy of the international Tonnage Certificate issued by an approved surveyor of ships;
• Evidence that the vessel has been marked in accordance with 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.

The main principles adopted at law are, the compatibility of the two registries and, that matters regarding title over the ship, mortgages and encumbrances are governed by the underlying registry, while the operation of the vessel falls under jurisdiction of the bareboat charter registry.

Within these parameters ships bareboat charter registered in Malta enjoy the same rights and privileges, and have the same obligations, as any other ship registered in Malta.

A bareboat charter registration shall be for the duration of the bareboat charter or until the expiry date of the underlying registration, whichever is the shorter, but in no case for a period exceeding two years. Registration may be extended.

The requirements and registration procedure for bareboat charter registration in Malta are similar to a normal registration, except that:

• Ship is bareboat chartered to a body corporate, entity or such other person qualified to own a Maltese ship;
• Ship is not a Maltese ship, and is registered in a compatible registry;
• Ship is not registered in another bareboat registry;
• Following documents need to be produced:

Registration fees and annual tonnage tax for bareboat charter registration are the same as those applicable for normal registration.

Ships under Construction

Maltese law provides for the registration of vessels that are being built or equipped. The requirements relating, inter alia, to survey and safety of ships already built and, to the declaration of ownership where the builders have not yet effected delivery to owners will be suspended until construction is completed or until delivery has been made. Vessels to be classed as trading ships are to be built under the supervision of a recognised organisation.

Authorised Classification Societies & Appointed Inspectors

Prior to and during the period of the ship's registration, merchant vessels must be classed with one of the following classification societies authorised to issue statutory certificates on behalf of the Maltese Government:

American Bureau of Shipping, Bureau Veritas, China Classification Society, Class NK, Det Norske Veritas, Germanischer Lloyd, Korean Register of Shipping, Lloyd's Register of Shipping, Polish Register of Shipping, Registro Italiano Navale, Russian Maritime Register of Shipping.

Flag State inspections of Maltese ships are carried out regularly by inspectors appointed by the Administration in different ports worldwide. The inspections are in addition to the regular statutory surveys conducted by the classification societies and are carried out only on the specific instructions of the Directorate. There are no additional charges for these inspections except when the vessel has to undergo a second or subsequent inspection to ascertain that reported deficiencies have been corrected and, when a ship is inspected prior to provisional registration.

Accounting Authority

Most of the vessels registered under the Malta flag have their radio accounts settled by large internationally recognised accounting authorities. All major authorities are recognised by the Maltese Administration.

Mortgages

Once a vessel is provisionally registered, registration, transfer and discharge of mortgages may be effected immediately on presentation of the relative documents to the Registrar. The 1986, 1988, 1990 and 2000 amendments introduced important safeguards in respect of registered mortgages thus making financing of Maltese ships more attractive.

Closure of Registry

Voluntary closure of registry followed by the issue of a Deletion Certificate is also a straightforward operation, provided, inter alia, there is the consent of the mortgages and all liabilities and obligations of the ship towards the State of Malta have been fulfilled. Cancellation of registry by the Administration for non-compliance with the provisions of the law may also be effected after adequate time has been given to the owners to regularize matters and for the financiers to take the necessary action to protect their interests.