The Malta Flag has proven to be a reputable and internationally recognised ship register. It is a Flag of Choice and widely sought by ship owners. It has the largest registered tonnage among the European flag states, with a total gross tonnage of 57.9 million. Numerous benefits are offered to ship owners through Malta’s fiscal, corporate and legal system.
The registration of vessels may either be done through a full registration method, whereby the full ownership is registered in Malta, including mortgages if any. Mortgages registered under the Malta Law enjoy high ranking over other privileged claims and give mortgagees executive title.
Vessels may alternatively be bareboat charter registered either through the setup of a Maltese company acting as bareboat charterer or through an international ownership. The setup of a Maltese company is a quick process and the company formation costs are very low. Should the owner wish to register a vessel through an international ownership, this may be done without the need to setup another company in Malta. In this latter case the appointment of a resident agent in Malta would be required, who will act as the channel of communication between the ship owner and the Maltese authorities and to act as the judicial representative of the ship owner in case of any judicial proceedings in Malta.
Vessels registered under the Malta Flag have no trading restrictions and are given preferential treatment in certain ports. The Maltese flag state requirements are well known to main shipyards and main classification societies. The Malta Flag is on the white list of the Paris MoU, Tokyo MoU and on the Low Risk Ship List of the Paris MoU. Furthermore, Malta has adopted all International Maritime Conventions.
All nationalities of crew are allowed on board and the minimum salaries allowed are those governed by the ILO Minimum Wages. Non Maltese national crew do not require Maltese seaman’s books, however an endorsement would need to be applied for in respect of the Officers on board.
The Malta Flag has progressive reduction in tonnage tax and registration fees for younger ships and there are no hidden costs. Inspection fees of vessels, when needed, are incurred by the flag state.
The registration process is a straightforward and quick procedure and the Malta Registry offers a 24/7 registration service.
