4 Benefits Of Shipping Company Formation in Malta

If you want to set up a company in Malta, there are a lot of opportunities for you to create your own business in the country. One opportunity waiting for you is forming a shipping company in Malta. 

The advantages of starting a company in Malta come with many perks that can attract any business owner. However, we should start with the basics first. Therefore, allow us to begin slow and understand the process of registering your business in Malta. 

Being informed about the requirements will give you an idea of what to prepare. As a result, you can give yourself enough time to process and gather these documents. This will allow for the registration process to go smoothly.

Does the Age of My Vessel Matter When I Want to Start a Shipping Company in Malta?

Before you go on and register your business, you must first equip yourself with knowledge about the industry you want to penetrate. Ships are one of the main vessels that help you establish your shipping company. 

In registering your ship, you must remember the following things:

• Suppose your boats are over 15 years old but under 20. In that case, your vessel must first pass an inspection. A flag state inspector will conduct this meeting within the month of the provisional registration of your ships.
• Ships over 20 but under 25 must still pass an inspection by authorized personnel before being provisionally registered.
• Ships that are over 25 years old are not registered.

Requirements For Provisional Registration?

To complete your Malta company registration, you must be ready with your requirements. 

Before you accomplish these requirements, you must know that your ship will be provisionally registered under the Malta flag for six months. This is enough time for the completion of your requirements.  

The requirements for you might need the following:

• The owner or an authorized person needs an application for shipping company registration
• Proof that you are qualified to own a vessel or, in this case, the ship
• The owner or the authorized personnel must have a declaration of ownership, which is made in front of the registrar
• The boat must have evidence of seaworthiness
• Owners must apply for ship and radio station license
• The payment for initial registration fees and annual tonnage tax

What Are The Benefits Of Forming A Shipping Company In Malta?

Here are the benefits of forming a shipping company in Malta.

1. The Tax Is Advantageous To The Owners

Malta is a great place to start a company because of its appealing tax scheme. Malta offers low business taxes.

Commercial vessel operations are subject to tax as low as 5%. However, there have also been changes in the Malta tonnage tax system.

The changes in the malta tonnage tax system offer advantages that include:

• Exemption from corporate tax, which falls under the Income Tax Act, on shipping activities
• Distribution of profits to the shareholders which are derived from shipping company activities are also exempt from tax

2. The Process Is Flexible

The process is flexible because you can still create a company in Malta if you are a non-resident owner. As a result, Non-resident owners could apply for the appointment of their resident agent. 

With this, the owner can still proceed with the registration process without being physically present.

You can apply for the name change of the ship after registration is complete. If the owners wish to transfer ownership after, it would still be possible.

3. The Reputation Of The Flag

If your shipping company has the Malta flag under it, you can ensure that the vessels you are deploying are always secured.

This is because there is a twenty-four-hour and seven days a week response to urgent matters. Second, it allows your shipping company to expand its market.

Since Malta has been an EU member country since 2004, it can allow you to conduct business with other EU members. The EU has a lot of potential markets, and carrying a Malta flag will enable you to explore opportunities with the market and its customers.

4. There Is No Discrimination

There is no restriction regarding the nationality of the owners, masters, and crews registered under the malta. Whatever your nationality, and if you’re a Malta-registered ship and company crew member, you will be protected by your contract, a crew agreement between master and crewmates.

Frequently Asked Questions (FAQs):-

To Wrap It Up

Malta is a thriving place for business. It has potential for growth and market. One business you could consider setting up is a shipping company. 

To start up your shipping company, you must first register your vessels. You must comply and complete the required documents within six months of the provisional registration period. 

Starting a shipping company in Malta is excellent because of the perks such as tax incentives and the Malta flag’s reputation. 

Starting a shipping company is not easy, but with the benefits aligned with it, it can guarantee us that it will be worth it in the end.

Additional Reading:

• What Is A Shipping Exception Fedex?
• The Rise Of Automated Shipping Systems
• Green Shipping 101: Understanding The Impact And Benefits In 2024