Establishing a Shipping Organisation in Malta: Requirements & Benefits

Establishing a Shipping Organisation in Malta: Requirements & Benefits

Establishing a Shipping Organisation in Malta: Requirements & Benefits

Entities who for their principal objects carry out specific shipping activities may seek recognition as a shipping organisation in Malta.


According to the Merchant Shipping Act, Chapter 234 of the Laws of Malta (the ‘MSA’), entities who carry out the following activities may seek to obtain a license issued by the Registrar-General:

  • The ownership, operation (under charter or otherwise), administratiojects carry out specific shipping activities may seek recognition as a shipping organisation in Malta.n and management of a ship/s registered as a Maltese ship in terms of the MSA and the carrying on of all ancillary financial, security and commercial activities in connection therewith
  • The ownership, operation (under charter or otherwise), administration and management of a ship/s registered under the flag of another state and the carrying on of all ancillary financial, security and commercial activities in connection therewith
  • The holding of shares or other equity interests in entities, whether Maltese or otherwise, established for any of the purposes stated in the provisions of the MSA and the carrying on of all ancillary financial, security and commercial activities in connection therewith
  • The raising of capital through loans, the issue of guarantees or the issue of securities by the company when the purpose of such activity is to achieve the objects stated in the provisions of the MSA for the shipping organisation itself or for other shipping organisations within the same group
  • The carrying on of such other activities within the maritime sector which the Minister may, on the advice of the Authority, from time to time prescribe by regulations as qualifying for the above purpose

 

A shipping organisation may be established and structured for any lawful purpose as a limited liability company, a partnership en nom collectif or a partnership en commandite and may have the status of either a public or private company. On the other hand, if the organisation is a foreign corporate entity, it must possess legal personality as per the laws of the jurisdiction in which it was originally established.

 

What is the process of incorporating a shipping organisation?

The process of establishing and incorporating a shipping organisation in Malta typically involves submitting a duly executed Memorandum and Articles of Association, along with the payment of the applicable registration fee.

 

Shipping organisations may be incorporated under the terms of the Merchant Shipping (Shipping Organisations – Private Companies) Regulations. By opting for this framework, the organisation is bound by less stringent requirements than those which may be imposed by the Companies Act, Chapter 386 of the laws of Malta.

 

What are the benefits of having a shipping organisation in Malta?

  • A competitive tax regime for shipping organisations, whereby a tonnage tax system is implemented which in turn provides significant tax advantages and cost savings for shipping organisations.
  • An efficient ship registration process in a reputable flag state with a well-established maritime legal framework.
  • Competitive registration costs and low corporate formation and maintenance fees
  • Access to the EU and international markets
  • Professional maritime infrastructure

 

Want to know more?

Get in touch with our legal team for more information about setting up a shipping company in Malta.

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