Francis J. Vassallo & Associates Limited

Ship Registration

A vessel is first registered provisionally under the Malta flag for six months (extendible for a further period, or periods, not exceeding six months in the aggregate) during which period all required documentation must be finalised.

The requirements, for provisional registration are:

  1. An application for registration by the owner or an authorised representative;
  2. An application for a change of name, if required;
  3. A copy of the ship’s International Tonnage Certificate, where applicable;
  4. Proof of qualification to own a Maltese ship; in the case of a body corporate, the memorandum and articles of association;
  5. A declaration of ownership made before the Registrar by the owner or an authorised representative;
  6. Evidence of seaworthiness; in the case of trading vessels, confirmation of class; and
  7. Payment of initial and annual registration fees.

The following documents must be submitted during provisional registration:

  1. A builder’s certificate if the vessel has not been registered elsewhere; otherwise, a bill of sale or any other document by which the vessel was transferred to the applicant for registry;
  2. A cancellation of registry certificate from the last country of registry;
  3. A Certificate of Survey and a copy of the International Tonnage Certificate certifying that the vessel has been surveyed in accordance with Maltese regulations;
  4. Evidence that the vessel has been marked in accordance with the law; and
  5. The crew list of the vessel.

Where valid appropriate convention certificates are not in place, the ship will be issued a non-operational Certificate of Registry. A Certificate of Registry is subject to renewal on the anniversary of the registration of the ship.

Bareboat Charter Registration

Maltese law provides both for bareboat charter registration of foreign ships under the Malta flag and also for the bareboat charter registration of Maltese ships under a foreign flag. Vessels so registered enjoy the same rights and privileges, and have the same obligations, as any other ship registered in Malta.

The two main principles adopted at law on bareboat charter registration are

  1. The two registries must be compatible, and
  2. All matters relating to title over the ship, mortgages and encumbrances are governed by the underlying registry, while the operation of the vessel falls under jurisdiction of the bareboat charter registry.

A bareboat charter registration may exist for the duration of the bareboat charter or until the expiry date of the underlying registration, whichever is the shorter, but in no case may such period exceed two years. Registration may be extended.

The requirements for bareboat charter registration in Malta are:

  • The ship must be bareboat chartered to Maltese citizens or Maltese bodies corporate;
  • The ship is not a Maltese ship, and is registered in a compatible registry;
  • The ship is not registered in another bareboat registry

Furthermore, the following documents must be produced:

  • An application for registration by the charterer or an authorized representative;
  • A declaration of bareboat charter accompanied by the charter agreement;
  • A transcript or an extract of the underlying registration;
  • A copy of the ship’s International Tonnage Certificate;
  • The consent in writing of the underlying registry, owners and mortgages;
  • Evidence of seaworthiness; in the case of trading vessels, confirmation of class;
  • Payment of initial and annual registration fees.

The fees for bareboat charter registration are the same as those payable for normal registration.

Authorised Classification Societies and Appointed Inspectors

Prior to and during the period of the ship’s registration, merchant vessels must be classed with a classification society authorised to issue statutory certificates on behalf of the Maltese Government, namely, American Bureau of Shipping, Bureau Veritas, China Classification Society, Det Norske Lloyd, Germanischer Lloyd, Korean Register of Shipping, Lloyd’s Register of Shipping, Nippon Kaiji Kyokai, Russian Maritime Register of Shipping, Registro Italiano Navale.

The following classification societies currently enjoy recognition applicable in certain circumstances on the specific authorisation of the Directorate: Croatian Register of Shipping, Helenic Register of Shipping, Polish Register of Shipping.

Flag State inspections of Maltese ships are carried out regularly by inspectors appointed by the Maltese authorities in different ports worldwide. The inspections are in addition to the regular statutory surveys conducted by the classification societies and are carried out only on the specific instructions of the Merchant Shipping Directorate. There are no additional charges for these inspections except when the vessel has to undergo a second or subsequent inspection to ascertain that reported deficiencies have been corrected and, when a ship is inspected prior to provisional registration.

Manning and Certification of Seafarers

Maltese ships are subject to the provisions of the Merchant Shipping Act of 1973 as amended, ancillary regulations and STCW 78 Convention (as amended) regarding the manning and certification of seafarers. There are no restrictions on the nationality of the master, officers and crew engaged on Maltese ships. Foreign certificates issued in terms of the 1978 STCW Convention as amended, require an endorsement issued by the Maltese Administration attesting their recognition.

International Conventions and Agreements

Malta has practically adopted all the major international maritime conventions including: CLC 92; Tonnage 69; COLREG 72; Fund 92; INMARSAT; Load Lines 66 (including 1988 Protocol); London Dumping 72; MARPOL 73/78; SOLAS 74/78 (including 1988 Protocol); STCW 78 (including 95 amendments); SUA 88 (including SUA Protocol 1988); SAR 79; FAL 65; OPRC 90 and OPRC-HNS Protocol 00 and ILO Conventions Numbers 8, 16, 22, 53, 73, 74, 87, 98, 108, 138, 147 (including 1996 Protocol and 180).

Malta has also entered a bilateral agreement with the United States of America exempting shipping (and air) operations from income tax, thus making it possible for Maltese companies owning or operating ships calling at US ports to claim an exemption from the 4% gross transportation tax levied on transportation income attributable to transport which begins or ends in the USA. Malta also has a reciprocal fleet agreement with the USA on the carriage of empty containers in the US coastwise trade exempting Malta flagships from the relative fees of the US Jones Act.

Moreover, similar treaties with several countries are in the process of negotiation, whereas the agreements with the People's Republic of China and the Russian Federation have already been concluded. Maltese ships trading to Greece benefit from an exemption from taxes on their earnings by way or reciprocity.

Mortgages

Registration, transfer, amendment and discharge of mortgages may be affected immediately on presentation of the relative documents to the Registrar. The 1986, 1988, 1990, 2000 and 2004 amendments introduced important safeguards to the mortgages of Maltese ships making financing more attractive.