Bareboat Charter Registration

The Maltese legal system provides for the registration of bareboat charters of foreign vessels under the Maltese flag and registration of bareboat charters of Malta vessels in foreign jurisdictions provided that there is compatibility of the two registries i.e. the bareboat charter registry and the registry in which the owner of the vessel is registered as such (also known as the underlying registry). Matters relating to the title over the vessel, mortgages and encumbrances are governed by the underling registry, whilst the operation of the vessel falls to be regulated by the jurisdiction of the bareboat charter registry.

Ships under a bareboat charter registration in Malta are entitled to the same rights and benefits and subject to the same obligations as any other vessel registered in Malta.

A bareboat charter shall be registered for the duration of the charter or until the expiration of the registration whichever is the shorter but in no event can this registration’s duration be longer than a 2 years period. Nevertheless, it is possible to extend the registration for further periods of 2 years.

The bareboat charter registration requirements and procedure are similar to the requirements and procedure applicable to ordinary registrations except that in the case of a bareboat charter registration, the ship is:

• bareboat chartered to a body corporate, entity or such other person qualified to own a Maltese ship;
• not a Maltese ship and is registered in a compatible registry; and
• not registered in another bareboat registry.

Additionally, the following documents are required for bareboat charter registration:

• declaration of bareboat charter together with the charter agreement;
• transcript or an extract of the underlying registration;
• copy of the ship’s International Tonnage Certificate; and
• consent in writing of the underlying registry, owners and mortgagees.

When it comes to fees & taxation covering the registration of a bareboat charter, these are the same as those applicable for normal registration.

Gonzi & Associates, Advocates advises as regards bareboat charter registrations and may assist in every step of the registration process, from the initial stages of document compilation to assistance with resolving required clarifications and and advising on tax planning.