Vessel registration under the Malta flag and the operation of Maltese ships is regulated by the Merchant Shipping Act of 1973, a law based mainly on United Kingdom legislation but subsequently revised and amended in 1986, 1988, 1990 and 2000. The main legislation is supplemented by a comprehensive set of rules and regulations.

Advantages include:

  • ships may be registered in the name of legally constituted corporate bodies or entities irrespective of nationality, or by European Union citiziens.
  • low company formation, ship registration and tonnage tax costs; progressive reduction in registration and tonnage tax costs for younger ships
  • attractive incentives to owners, registered charterers and financiers of Maltese ships of over 1,000 net tonnage; these incentives may also be extended to smaller ships
  • no restrictions on the nationality of the master, officers and crew
  • no restrictions on the sale or transfer of shares of a company owning Maltese ships
  • no restrictions on the sale and mortgaging of Maltese ships
  • no trading restrictions,
  • preferential treatment to Maltese ships in certain ports
  • twenty four hour, seven days a week service in respect of urgent matters
  • Malta is an international maritime centre providing the whole range of maritime services.

Eligibility for registration

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.

The formation of a Maltese shipping company is a straight forward operation; there are no nationality requirements as to both the shareholders and directors.

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

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.

Ships of 15 years and over but under 20 years are required to pass an inspection by an authorised flag state inspector before or within one month of provisional registration.

Registration procedure

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 finalized.

The requirements for provisional registration are:

  • application for registration by the owner or an authorised representative, including, if required, 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
  • where applicable, copy of the current ship's International Tonnage Certificate,
  • 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.

The following documents are to be submitted after provisional registration:

  • where there was previous ownership, a bill of sale or any other document by which the vessel was transferred to the applicant for registry; otherwise a builder's certificate in the name of the applicant
  • where applicable, cancellation of registry certificate issued by the Administration where the vessel was last documented
  • 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.

Where valid appropriate convention certificates are not in place the ship will be issued with a non-operational certificate of registry.

A certificate of Malta registry is subject to renewal on the anniversary of the Maltese registration.

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 chartered 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:
  • application for registration by the charterer or an authorised representative

  • declaration of bareboat charter accompanied by the charter agreement

  • transcript or an extract of the underlying registration

  • copy of the ship's International Tonnage Certificate

  • consent in writing of the underlying registry, owners and mortgagees.

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 affected 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.

Commercial Yachts

Yachts in commercial use, which do not carry cargo and do not carry more than 12 passengers can be registered as commercial yachts. Maltese law is very advantageous for the operation of commercial yachts. A Commercial Yacht Code setting the required standards of safety and pollution prevention has been published.

International conventions

Malta has adopted all the major international maritime conventions including: CLC 92, Tonnage 69, COLREG 72, Fund 92, INMARSAT, LLMC 1996 Protocol, Load Lines 66 (including 1988 Protocol), London Convention 72, MARPOL 73/78, SOLAS 74/78 (including 1988 Protocol), STCW 78 (including 95 amendments), SUA 88 (including SUA Protocol 1988), SAR 79, FAL 65, OPRC 90 and OPRC-HNS Protocol 00 and ILO Conventions Nos. 8, 16, 22, 53, 73, 74, 87, 98, 108, 138, 147 (including 1996 Protocol) and 180.

For a ship to operate under the Malta flag it must carry at all times valid statutory certificates issued on behalf of the Malta government by a recognised organisation.

Recognised organisations

Survey, tonnage and convention certificates may be issued on behalf of the Malta government by the following recognised organisations:

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

Manning and certification of seafarers

Maltese ships are subject to the provisions of the Merchant Shipping Act, ancillary regulations and the STCW 78 Convention (as amended) regarding the manning and certification of seafarers. There are no restrictions on the nationality of the master, officers and crew engaged on Maltese ships. Foreign certificates issued in terms of the STCW 78 Convention as amended, require an endorsement issued by the Maltese Administration attesting their recognition.

A Minimum Safe Manning Certificate will be issued by the Administration.

Mortgages

Registration, transfer, amendment 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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.