There are numerous advantages for registering vessels under the Maltese flag, making Malta one of the leading ship registration jurisdictions worldwide. The benefits are:
Low company formation and registration costs.
Complete tax exemptions, and benefits for owners, charters and financiers of Maltese ships.
No restrictions on the nationality of the shareholders and of the directors of Maltese companies, and of the master, officers and crew of Maltese ships.
No restrictions on the sale and mortgaging of Maltese ships.
No trading restrictions.
Preferential treatment for Maltese ships in certain ports.
Ship Registration Procedure
The ship registration procedure is quick and efficient. All types of vessels may be registered once they are owned either by Maltese citizens or by a Maltese company. A Maltese ship may also be bareboat charter registered under another flag.
The procedure for the registration of a vessel is relatively straightforward. Provisional registration, which in terms of the law has the same effect as the so-called permanent registration, can be effected very quickly. Authority to help a ship, however, will only be given once the Administration is satisfied that the vessel conforms to all the standards required by the relative international conventions.
Provisional registration has a validity of six months, although this can be extended by a further six months; by this time all the documentation has to be completed for permanent registration. This includes, in particular, evidence of ownership and of cancellation of former registry. Authority to operate still remains linked to conformity with the relative manning, safety and pollution prevention international standards.
Company Formation
The benefits that exist when registering a vessel under the Maltese flag, are also prevalent in the procedure for company formation which is straightforward and inexpensive. Company formation is the very first step to be taken for a Malta flag registration.
Limited liability shipping companies are formed by means of a public deed or a private writing. The minimum of subscribed capital required by law is Lm500 of which 20% must be paid up.
The principal place of business need not be located in Malta and there are no restrictions on the sale and transfer of shares or stock of a Maltese shipping company. There also has to be a minimum of two shareholders who can be foreign individuals or bodies corporate.
A company can be registered in a few hours on the basis of a power of attorney sent by the shareholders to their representatives in Malta, together with some necessary information.
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