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. Before we get into the benefits, let us first equip ourselves with knowledge of the registration of shipping companies in Malta.
Being informed about the requirements will give you an idea of what to prepare, and 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 to help you establish your shipping company.
In registering your ship, you must remember the following things:
- Suppose your ships are over 15 years old, but they are under 20. In that case, your vessel must first pass an inspection to be conducted by an authorized flag state inspector before or within a month of the provisional registration of your ships.
- For ships over the age of 20 but under 25, they must still pass an inspection by authorized personnel before being provisionally registered.
- Ships over 25 years old are not registered.
What Are Some of the Requirements Needed for Provisional Registration?
We have talked about in the previous paragraph that ships are still provisionally registered until it is inspected. To complete your malta company registration, you must first be ready with your requirements.
Before you accomplish these requirements, you must first know that your ship will be provisionally registered under the Malta flag for 6 months. This is enough time for the completion of your requirements.
The requirements you might need are the following:
- The owner or an authorized person needs an application for registration
- Proof that you are qualified to own a vessel or 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 ship 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?
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.
To start, commercial vessel operations are subject to tax as low as 5%. There are also 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 activities are also exempt from tax
2. The Process Is Flexible
The process is flexible because if you are a non-resident owner, you can still opt to create a company in malta. Non-residents 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.
Additionally, you can also apply for the name change of the ship after the 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 can allow 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 crew for a malta registered ship and company, you will be protected by your contract, which is a crew agreement between master and crewmates.
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.
In starting up your shipping company, you must first register your vessels. You must need to comply and complete the documents needed within the given 6 months provisional registration period.
It is nice to start a shipping company in malta 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.
Frequently Asked Questions
Why Should I Start a Shipping Company in Malta?
You should start a shipping company in malta because of the perks that come with it. The perks are:
- Tax incentives
- No discrimination when it comes to nationalities
- Flexible process
- The reputation of the flag
Is There a Required Vessel Age for Setting up Your Company?
There are no restrictions to the age. However, vessels that are 25 years old are not registered. Vessels aged 15-25 must undergo inspection during the provisionary registration period.
What Are Some of the Requirements Needed to Establish a Shipping Company in Malta?
The requirements you might need are:
- Application for registration
- Proof of qualification to own a vessel
- Declaration of ownership done at the registrar
- Evidence of your vessel's seaworthiness
- Radio station license
- Payment for fees
What Is the Benefit of Having a Malta Flag?
With the malta, you have:
- 24/7 access to urgent responses
- Access to a larger EU market