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Every ship or yacht must be registered in a recognised jurisdiction to provide proof of nationality and of ownership. A vessel assumes the nationality of the flag/ jurisdiction under which it is registered and is therefore subject to the regulations laid down by the governing register. Very often major advantages and legal savings can be achieved by registering vessels in advantageous jurisdictions, for example in Malta. Vessels registration under the Malta flag and the operation of Maltese ships is regulated by the Merchant Shipping Act, a law based mainly on U.K. legislation but subsequently revised and amended in 1986, 1988 and 1990.

The advantages of the Maltese flag

The Maltese flag is internationally well respected, and the registration of ships and yachts under the Maltese flag offers many advantages, including low company formation and vessel registration costs, no restrictions on the nationality of the ship owner, complete tax exemption, no restrictions on the nationality of the captain, officers and crew, no restrictions or taxation on the sale or transfer of shares of a company owning Maltese registered ships, no restrictions or taxation on the sale and mortgaging of Maltese registered ships.

General requirements for registration in Malta

Any vessel can be registered under the Maltese flag provided it is owned by a Maltese registered company. The formation of a Maltese company is straightforward. There are no nationality requirements as to both the shareholders and directors and usually the ship or yacht owner will be the shareholder and director of the company, although nominee shareholders and directors are possible to secure the privacy of the yacht owner. The company needs to maintain a registered office in Malta, and it also has to appoint an authorized representative in Malta where all the company's administration is handled. All these services are provided by Henley & Partners Malta.

A vessel is first registered provisionally under the Malta flag for six months during which period all documentation must be provided and the vessel will then be registered permanently. As regards EU residents and VAT, it is worth pointing out that since the ship or yacht will be owned by a Maltese registered company, the vessel is tax exempt in the EU and VAT is not payable (or can be reclaimed) provided that the vessel is not in EU waters for more than six months in any twelve month period.

Yacht registration

In order to register your yacht permanently under the Maltese flag, you must provide the following documents within six months from provisional registration:

1. A Survey Certificate from an authorized surveyor in the port where the yacht lies attesting the yachts seaworthiness;

2. If the yacht is more than 24 metres in length, an International Tonnage Certificate is required

3. A bill of sale showing that the Maltese company has bought the yacht, or a builder's certificate in the name of the Maltese company if the yacht is new or has never been registered anywhere previously

4. A radio inspection form and a radio licence application, which must be filled in by an authorized surveyor in the port where the yacht lies.

5. A Carving and Marking note from an authorized surveyor in the port where the yacht lies

6. If the yacht has been registered previously outside of Malta, a certificate showing cancellation of registry from that last country of registry (deletion certificate)

Commercial ship registration

Commercial ships over 25 years will not be registered. Commercial ships which are between 20 and 25 years old must pass an inspection before provisional registration; commercial ships between 15 and 20 years old must pass an inspection by an authorized flag state inspector within one month of provisional registration.

To register your ship provisionally under the Maltese flag, the following documentation is required:

1. Bill of sale showing that the Maltese company has bought the ship or a builder's certificate in the name of the Maltese company if the ship is new or has never been registered anywhere previously

2. Confirmation of seaworthiness from the vessel's classification society confirming (a) vessel type and classification; (b) valid dates of statutory certificates; (c) exemptions or recommendations; (d) encumberances

3. A copy of the latest International Tonnage Certificate

4. A Document of Compliance and Safety Management Certificate showing the new ship manager's detail; if the safety management certificate is not available, the classification society must state that the certificate will be issued on registration.

Once provisional registration is complete, the Malta Maritime Authority will issue a Certificate of Provisional Registration, a Minimum Safe Manning Certificate and, in the case of tankers, a CLC (Blue Card) Certificate.