Since the start of modern history and even earlier, ships have always offered the possibility of getting to know the world and allowing the development of culture through the exchange of goods, services, and even knowledge, also these days the world trade moves to a greater extent by sea, as we have all been able to observe those huge ships arriving loaded with containers and carrying within them an infinite number of products that we use in our daily lives even though they have probably crossed the entire world to reach our hands. 

Undoubtedly, the role of nations such as China, Singapore, or Hong Kong whose economic growth and market positioning is becoming more relevant every day, is no coincidence that these countries have some of the most important ports in the world in their territory and of course with huge maritime traffic. However, something that is important to highlight is that are countries like Panama and the Republic of the Marshall Islands that have the largest ship registries in the world; this may come as a surprise, but it has a reason to be and here in Mundo we tell you why.

What is the Ship Registry?

First, we must define what ship registration means. It is understood as the process in which a ship receives the nationality of the country where it is registered; this represents proof of ownership and also allows it to transit through international waters. 

The registration of a ship is done through an agency that can be private or public. The flag state under which it was registered exercises regulatory control over the vessel and must carry out periodic inspection operations.

It has already been mentioned that Panama has the largest ship registry in the world, it is normal that when talking about this nation the first thing that comes to the mind of any person is undoubtedly the Pánama Channel, that impressive engineering masterpiece that connects the Pacific Ocean with the Atlantic and therefore facilitates the movement of world trade, in addition to this, it is important to highlight that Panama offers freedom of registration under its flag along with other eases to avoid stricter foreign jurisdictions within this area. Once this is understood, the idea of registering a ship under a foreign jurisdiction makes more sense.

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Why the Marshall Islands?

The Marshall Islands are made up of a group of chains of islets and atolls that, due to their remote location in the middle of the Pacific Ocean, have always had sailing as an important part of their way of life. Currently, this small nation has the third-largest registry of ships in the entire world. 

This may seem like a surprise, but the island's boat registry exceeds 131 gross tons. This registry falls into the category called "flag of convenience", referring to those registries that are open to the registration of boats owned by foreigners.

The Republic of the Marshall Islands Maritime Registry was founded by the local government in 1988, one of the reasons why it is attributed to find so many ships registering to sail under the flag of this nation, is due to its modern registration system, which is regulated by the RMI Maritime Act and as we have indicated on other occasions, even receives international recognition for being one of the most modern and efficient jurisdictions in the area of maritime transport; they are also recognized for having provided numerous tools to modernize and improve safety in the maritime field.

It is absolutely important to highlight the safety aspect since, despite all the facilities that are offered at the time of registration, they still meet all the safety standards established at the international level in an outstanding manner, appearing even for more than ten years in a row in the Memorandum of Understanding (MoUs) of Tokyo and Paris, as a flag of low risk in terms of maritime inspections. However, these are just some of the benefits of registering your ship in the Marshall Islands. 

Benefits of Registering a Ship in the Marshall Islands

1. This jurisdiction has great recognition at the international level, due to the great number of measures taken in relation to the security and development of the maritime field. 

2. The efforts made by the competent authorities to ensure that the vessels in circulation have high-quality standards, thus obtaining the highest international standards in Port State Control (PSC). 

3. Following in the same line, the high safety, and security standards, it is also worth mentioning that the Marshall Islands stand out within the United States Coast Guard's Qualship21, a ranking that highlights the quality of the ships in circulation.

4. No limitations regarding the current jurisdiction of your boat or how problematic it would be to move it. The Marshall Islands dual or parallel registration with other jurisdictions is allowed, respecting of course the laws of the previous jurisdiction.

5. The possibility of completing the registration of your vessel while it is still under construction, this benefit is mainly given to those vessels destined for foreign trade activities. 

6. Tax exemptions for non-resident companies within the Marshall Islands, the relevance of this last point lies in the possibility of registering vessels under the various corporate structures of the country or its foreign equivalent.

7. The type of vessel is not a limiting factor in the eligibility for registration. Within the same can be found tankers, natural gas tankers, containers. Drilling and production drills. Also destined to a totally different area you can find different types of yachts and passenger vessels.

8. The possibility of completing the registration form practically anywhere in the world. 

How to Register your Ship?

As indicated above, it is possible to register from practically anywhere in the world, due to the different registration offices that the Marshall Islands have distributed in the most important cities and economic centers of the world. The necessary documents can also be found on the Registry website. 

Once the registration process is completed, the Republic of the Marshall Islands Maritime administrator will be granting the vessel the Certificate of Registry (COR), which will represent the proof that the vessel and the owner comply with all the legal requirements to complete the registration in the Marshall Islands. With this certificate, they will also be able to sail internationally.

The Republic of the Marshall Islands is a small nation that due to its remote location and unique geography has found a way to be connected to the rest of the world. Without doubt, the registry of ships of this island is an example to follow for those small nations that wish to figure internationally. Here in Mundo, you can learn more about this little giant and help you with your Marshall Islands’ company or vessel registration.