Who can register a vessel in Panama?
Any individual or corporate entity, irrespective of nationality or country of incorporation, may register a vessel under Panamanian flag.

What kinds of vessels can be registered in Panama?
There is no minimum tonnage and almost any category of ships can be registered, from passenger ships to dredges and floating docks. There are no age restrictions; however vessels older than 20 years are subject to a special inspection. They will be issued a Provisional Patente and will have 6 months to complete the inspection.

What are the steps taken to register a vessel in Panama?
The ship owner must appoint a Panamanian law firm to act as its representative in Panama. The firm will handle the initial provisional paperwork that includes a temporary Certificate of Registration (also known as “Patente”), valid for 6 months and a provisional Radio License, valid for 3 months. The procedure is straightforward and is usually completed within the same day, as soon as registration fees and first year's annual charges are paid. The firm will then file the title of ownership with the Public Registry Office, in Panama, and submit an application for permanent registration to the Shipping Department within the validity period of the temporary certificates.

What documents are required to register a vessel?
After the preliminary data about the vessel and the parties is collected (application form), the following original documents must be filed at the time of registration.

• Power of Attorney
• Corporate Resolution
• Deletion or Cancellation Certificate (Does not apply to new vessels)
• Title of Ownership (two copies)
• Acceptance of Sale
• International Tonnage Certificate, or Certificate of Admeasurements

Please note that all documents must be notarized. The notary's signature must, in turn, be authenticated and this process can take different forms: Panamanian Consulates all over the world are able to legalize documents signed within their jurisdiction. In the U.S., the local Department of State will confirm the authenticity of a notary's signature. Most countries will provide a similar acknowledgement known as an 'apostille'.

Can I reserve a vessel name in advance?
Yes, it is possible to reserve in advance the name of a vessel in construction, or scheduled for construction, provided this name is available, upon payment of a nominal fee.

What happens in a title registration of a vessel?
The firm registers in preliminary form the Bill Of Sale or any other title of ownership, such as a builder’s certificate. The firm shall retain one counterpart of the Bill of Sale and Acceptance of Sale and authenticate true copies of these documents, which are to be filed at the Public Registry in Panama within six months.

Do you offer mortgage registration services?
Yes, the firm registers in preliminary form a naval mortgage against a Panamanian vessel. Mortgages are bilateral contracts between the mortgagor (ship owner) and the mortgagee (lender). The firm legalizes the signature of both parties through a notary. The procedure is straightforward and is usually completed within the same day.

The ship owner can be assured of the acceptance by the United States, Far Eastern and European banks of the Panamanian mortgage, providing satisfactory security. Hence the Panamanian Ship Mortgage, once registered, grants a right to the mortgagee against the vessel. The encumbrance follows the ship even when sold. The mortgagee thus has a right to pursue, attach or have the ship sold in order to collect his credit, with preference over creditors of less standing.

Do Panamanian vessels pay taxes?
Panamanian vessels are subject to the payment of a moderate annual fee calculated on the basis of their tonnage. On the other hand, nonresident shipping companies are not subject to income or withholding taxes since the fiscal legislation in Panama taxes only the income that arises or derives from activities within the national territory.

What if I would like to transfer my vessel to Panama?
Ship owners who wish to transfer their vessels to the Panamanian registry are not required to have the vessels re-surveyed, provided the vessels possess valid safety certificates. Furthermore, provisions are made to accept foreign tonnage certificates at the moment of registration; this obviates the necessity to have the ship dry docked prior to the registration and consequently saves the ship owners considerable expenses

Does the vessel require inspections or surveys?
All vessels must pass an annual inspection to ensure that they meet with international safety regulations, carry up to date certificates and are properly manned and equipped for their intended trade. To prevent the enrollment of potentially hazardous ships, vessels built over twenty years ago must be inspected before a permanent “Patente” can be issued.

All vessels are subject to surveys by an approved classification society that will issue tonnage and other technical certificates. Depending on the type of vessel, those certificates will vary.

(The above FAQ is reprinted with permission from the Maritime Section of the New York Consulate General of Panama.)