Panama Ship Registration

Because of Panama’s strategic location in the maritime world and its role in international commerce are what make Panama suited to the registration of sea-faring vessels. Taking advantage of this geographical fortune, Panama enacted legislation in 1925 to promote vessel registration. Panama ship registration center is prominent and has continued due to the features advantages of legislative framework, such as:

o Absence of Restrictions: Panama ship registration process has no restriction as to the age, type or size of vessel to be registered, as long as sea-worthiness requirements are met. Policies that were introduced in the 1980’s tightened the safety standards and environmental controls to a point where standards are now among the most stringent world-wide.

o Financial Center: Panama’s stability as a corporate, maritime, and banking center has contributed to the growth of the professional services industry, accounting firms, attorneys, and financial planners abound. These experts contribute to the continuing success of the center, drawing foreign investments.

o No ownership restrictions: Panama ship registration has no requirements under Panama legislation for the owner to be Panamanian, whether a natural or legal person.

o Simple registration process: Ships and ship mortgages are easily registered in Panama City. The existence of an extensive network of consular offices ensures that maritime-relates transactions are easily perfected.

o Tax exemptions: The revenues generated from international maritime commerce of merchant ships registered in Panama are exempted from taxation, regardless of whether the contracts were affected within Panama. Additionally, the proceeds of the sale or transfer of a vessel registered in Panama are not subject to capital gains tax even when the transaction is done in Panama.

Panama ship registration offers both provisional and permanent registration of vessels. The purpose of provisional registration is to allow the title to be duly registered in the Public Registry office and to ensure compliance with other requirements for permanent registration. However, the patent of provisional registration is valid only for 3 months and maybe obtained quickly from the Bureau of Vessels. Applications for the provisional license may be filed through Panamanian consulates world-wide. In such cases, the Bureau will authorize the Consulate via fax to proceed with the registration.

For permanent registration, in the 6 months following a provisional registration is granted, the Bill of Sale or the Builder’s Certificate in the case of a newly constructed vessel, should be filed in the Republic of Panama. Following registration of these documents in the Public Registry Office, next step is to request issuance of the Permanent Navigation Patent, which is valid for 4 years or 2 years for pleasure crafts, from the Bureau of Vessels. This patent is renewable for similar periods of time, as long as the vessel is to date in its payment of fees and taxes and is in compliance with all applicable laws and regulations. Just remember that Panama legislation requires that any Panama ship registration transactions maintain a legal representative or registered agent locally.