Ship Registration under the Malta flag

The Maltese archipelago - consisting of the islands of Malta, Gozo and Comino - lies at the cultural, financial and geographical crossroads of the Mediterranean Sea. Malta, with Valletta as its capital, is the largest island of the group.

Strategically located at the centre of the Mediterranean Sea, at the confluence of the major sea lanes linking Europe, North Africa and the Middle East, Malta's unique position affords easy access to these markets and beyond

The Maltese Islands are politically and economically stable, with a sound legal and financial framework. Industry and exports, tourism and financial services are the pillars of the Maltese economy. The country's communication facilities are excellent, with a highly sophisticated digital telecommunications infrastructure that ensures a global business environment at all times.

The Malta Flag

The Malta Flag formally came into existence as an ‘open’ register in 1973 with the promulgation of the Merchant Shipping Act (1973), Chapter 234 of the Laws of Malta. The Malta Flag has experienced considerable growth ever since and can today be said to have one of the largest registries in the world in terms of tonnage.

Malta has also adopted a number of international maritime conventions including the Hague Convention which became effective in 1994, making it one of the most ideal jurisdictions for the registration of vessels.

The Malta Registry of Shipping and Seamen is administered by the Malta Maritime Authority which was established in 1991 following the enactment of the Malta Maritime Authority Act, Chapter 352 of the Laws of Malta.

Advantages of the Malta Flag

All types of vessels, from pleasure yachts to oil rigs, may be registered in the name of legally constituted corporate bodies or entities, irrespective of nationality and a Maltese ship may also be bareboat charter registered under another flag.

There are neither trading restrictions nor age restrictions. However, inspections for ships of 15 years and over must be carried out by an authorised flag state inspector. As a rule trading ships of 25 years and over are not registered.

Advantages of the Malta flag include:

• Low company formation and ship registration;
• Cost Complete tax exemption to owners, charterers and financiers of Maltese vessels of over 1,000 net tons (this exemption may be extended to smaller ships);
• No restrictions on the nationality of the master, officers and crew;
• No restrictions on the nationality of shareholders and directors of shipping companies;
• A number of double taxation and bilateral maritime agreements with other maritime nations;
• Diverse maritime services;
• Political stability which guards against arbitrary changes to applicable laws and regulations.

Incorporation of a Maltese Shipping Company

Maltese flagged vessels may be owned by a Maltese individual or company or by a foreign corporate body or other entity which enjoys legal personality in terms of the law under which it has been established or constituted. Consequently a Maltese or foreign Shipping Company must first be incorporated prior to the vessel being registered in its name under the Malta flag.

• The proposed company name, which name can be reserved for three months;
• The registered address of the proposed company, which can be the same as that of the representative in Malta;
• A minimum of two shareholders, who can be foreign individuals or bodies corporate;
• The distribution of the proposed company shares;
• The name and details of the directors of the proposed company; who can be foreign individuals or bodies corporate;
• Details of voting, capital or class rights and indication of any local proxies.

Where the Malta flag vessel is to be owned by a foreign corporate body or entity, a resident agent must be appointed in Malta, who must be habitually resident in Malta, and who must qualify as such and prove to the Registrar General of Shipping that he/she is capable of fulfilling his/her duties. The agent serves as a means of contact between the ship owner and the Maltese authorities, thereby creating a proper channel of communication.