The Malta Shipping Act (MSA) provides for and regulates the registration of ships under the Malta flag.
One of the major benefits of the Malta flag relates to the inexpensive and straightforward registration procedures, catering for all types of ships and providing flexibility of ownership structure.
Eligible Ships
Ships of any type and tonnage, of at least six metres in length, can be registered in the Maltese Register of Ships.
A ship is defined as “every description of vessel used in navigation, whether self propelled or not, and it includes barges, pontoons and oil rigs and other similar vessels, but not including vessels propelled by oars, and for those parts of the Act wherever applicable it shall also include a ship under construction”. This term includes pleasure yachts, passenger ships, cargo ships and fishing ships. There are no restrictions as to where the ship is to be managed, or where the ship owner or charterer ordinarily resides. This flexibility affords vessel managers a high level of freedom in organising the manning and operation of Malta-flagged vessels.
Eligible Persons
Persons are considered qualified to register a ship under the Malta flag if they are any of the following, namely:
- Citizens of Malta or citizens of other European Union Member States;
- Bodies corporate, including limited liability companies, whether public or private (“shipping companies”), partnerships en commandite and a partnerships en nom collectif, established under and subject to the laws of Malta having their principal place of business in Malta; and
- “Shipping organizations” which may include any local or foreign company, partnership, trust or foundation having as its activities the owning, operating, administration or management of vessels.
The Maltese flag does not set any limits on the nationality of the shareholders, directors or officers of ship-owning entities. With regulations permitting foreign entities to register a ship under the Malta flag, the only additional formalities that must be satisfied in relation thereto regard the entity’s establishment and management. An international owner (a nomenclature which refers to both foreign entities and EU citizens) is also required to appoint a Resident Agent in Malta to liaise with the Malta Maritime Authority and perform all such other administrative and representative functions as may be necessary on behalf of the international owner. This framework ensures the protection of all stakeholders and enables the proper functioning of the maritime authority. |
