One of the decisions made by owners that can impact the vessel both operationally and financially is the selection of the most appropriate ship registry. The flagging decision for owners and managers is a complex matter and requires the careful consideration of multiple operational, legal and technical criteria.
The Malta Flag is a flag of confidence with a total gross registered tonnage of 86 million and is considered to operate under the highest technical and safety standards. Malta’s accession in the E.U. has made the Malta Flag more attractive to both operators and charterers since vessels flying the Malta flag are E.U. vessels.
Eligibility
All types of vessels from pleasure yachts to oil rigs, including vessels under construction may be registered under the Malta flag, as long as they are wholly owned by legally constituted corporate bodies or entities irrespective of nationality or by European Union citizens.
Vessels owned by foreign corporate bodies or by EU citizens shall require the appointment of a resident agent in Malta. In the case of vessels owned through a Maltese company, this is a straightforward process and has no nationality requirements as to both the shareholders and directors.
As a rule, trading ships of 25 years and over are not registered although in certain circumstances this may be considered. Ships of 15 years and over are required to undergo successfully an authorised flag state inspection prior to provisional registration. Ships of 10 years and over but under 15 years are required to undergo successfully an inspection by a flag state inspector before or within one month of provisional registration.
Benefits
- Largest European Maritime Flag
- 6th Largest Maritime Flag in the World
- Competitive ship registration fees and low company formation costs
- Ships and commercial yachts may benefit from Malta’s tonnage tax rules
- Progressive reduction in registration costs for younger ships
- On the White List of the Paris MoU and Tokyo MoU
- No trading restrictions and preferential treatment to Maltese ships in certain ports
- Meets the flag criteria for a Low Risk Ship
- Malta is a party to the major International Conventions
- No restriction imposed on the nationality of crew
- European crew may benefit from Malta’s low social security rates
- No restrictions on the nationality of the shareholders or directors of Maltese companies
- Straightforward and quick registration procedure
- The Malta Registry has more than 40 years experience and reputation of high quality services and professionalism
- Wide spectrum of vessels eligible for registration
- 24 Hours, 7 days a week service for urgent cases
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.
A ship registered in Malta together with its equipment, machinery and other accessories, or any share therein, may be made a security by way of mortgage.
Maltese mortgages offer adequate protection to ship financiers for the following reasons, among others:
- They enjoy a high priority in an eventual ranking of claims against a Maltese ship
- Mortgages constitute executive titles and may be enforced immediately without the need to institute lengthy court proceedings
- They attach to any proceeds from any indemnity as well as any insurance proceeds
- A mortgagee may prohibit the registration, without his prior written consent, of subsequent mortgages in favour of other creditors, unless such further mortgage is executed in favour of an existing mortgagee
- The Registrar of Ships is bound to notify the mortgagee upon the transfer of a registered ship to a new Maltese owner
- The sale of a Maltese ship to a foreign owner requires the prior written consent of all registered mortgagees
- A mortgagee may apply for any extensions, pay fees and do all such things in the owner’s name in order to maintain the status and validity of the ship’s registration.
Why AML?
AML handles the whole process of the registration of all types of vessels including but not limited to Private and Commercial Yachts and Merchant Vessels. Our services comprise of:
- Company incorporation
- Acting as Resident agent
- Registration of vessel and renewal of all vessel’s flag state certificates
- Application of seamen’s books
- Enrollment of seafarers in Malta’s social security system
- Vessel accounting support
Through AML’s expertise, we shall ensure that you may benefit from:
- Dynamic Team specializing in ship registration under the Malta Flag
- Carefully designed in-house procedure ensuring full compliance with the requirements of the Malta Flag Registration
- No administrative burden
- Our team shall carefully assist and guide you through the registration process of your vessel from the initial acceptance by TM to the completion of the Permanent Registration
- Dedicated customer service throughout the registration process
- Competitive pricing
- 24/7 account manager to offer a personalized service ensuring full customer satisfaction
AML’s expertise in flag registration gives owners/managers a value added and personalized service, through the know-how of its registration department, which includes people with a seafaring background. Furthermore, the company’s excellent relations with the Malta Flag State, ensures that the reflagging process will be a smooth and efficient operation, thus giving peace of mind to owners.
Contact us on maltaflag@amlmalta.com for more info.
Frequently Asked Questions
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External Links
Registration and Annual Fees
Merchant Shipping Notices
Download Guide to ship registration in English
