SHIP REGISTRATION IN PANAMA

The Republic of Panama, at the center of the American Continent, has coastlines on the Atlantic and Pacific Oceans, it links the two oceans through the Isthmus of Panama with one of the world's great inter-oceanic waterways, The Panama Canal.

Panama, nowadays has the responsibility of administering the world's largest fleet of vessels. It is introducing new programs aimed at making the Panamanian Registry one of the most respected and active in the international maritime community.

The General Directorate of Merchant Marine is in charge of all administrative proceeding related to the registration of ships.

Panama has become one of the world's most prominent jurisdictions for ship registries. Its status offers many advantages both to the ship-owners and to mortgagees. Between these advantages, we must note the incentives regarding the fiscal laws of Panama. All the activities of vessels registered in Panama done outside the country are not subject to income taxes or any other levy.

Additionally, Panama does not require that vessels be owned by a Local Resident of Panama. Nevertheless, since the Republic of Panama has a favorable law concerning incorporation of companies it is recommended that the vessel be owned by a Panamanian entity in order to take advantage of the limited liability in cases of collisions or accidents of the ship.

With regards to the crew members, any vessel under the Panamanian flag may hire crews from any nationality. The procedure for registration of a vessel under the Panamanian flag, is very simple and straightforward. Provisional registration may be requested differently in Panama through a legal representative (law firm) or abroad through authorized consulates by submitting the relevant information with the appropriate fees.

Through its attorneys, Gerli & Co.  can arrange for vessels to be registered under the Panamanian flag. Any ship can obtain, usually within two business days, a provisional Panamanian registration valid for six months. The permanent registration has a duration of four years for merchant ships and two years for yachts, and is renewable for a like term. It can be obtained following the provisional registration locally through the Directorate General of Consular & Maritime Affairs through established procedures.

Highlights

For more than 70 years, the Republic of Panama has offered various facilities for the registration of vessels engaged in all type of maritime activity.

The procedure for the registration of vessels was adopted through Law No 8 of 1925, which permits the enrollment of cargo and passenger vessels, as well as dredges, barges, floating docks and other types of vessels.

Requirements:

In order to obtain a Provisional Navigation Patent for vessels or yachts of less than 5000 net tons, the following information is required:

The following documents are necessary to register a vessel in the Republic of Panama:

The ship registry office has basically three types of registration that may be used to register a vessel in the Republic of Panama, to wit:

The Official license of navigation issued to a vessel duly registered in Panama.

License issued under a Bareboat-Chartered agreement.

The special registration in case of pleasure yachts.

Bareboat Charter

Bareboat charter registration is permitted by Panama. According to our laws, a foreign vessel bare-boat chartered for a period of two years, can be registered in Panama for the same period of time without losing its previous registration, and the opposite is also permissible (from Panama to the other countries). The registration is recorded into a special registration data.