India Ship Registration
India, a maritime nation with a long coastline and active ports.
Registering a ship under the India flag offers several advantages, making it a strategic choice for maritime operations. Key benefits include: (a) access to a vast network of ports and a strategic location along major shipping routes, (b) a favorable tonnage tax system, where tax is based on the ship's net tonnage rather than profits, and (c) no tax on profits from the operation of an India-registered vessel. India is on the Grey list of both Tokyo and Paris MoU. Additionally, India provides efficient administrative services and a robust legal framework, enhancing operational efficiency and reliability for shipowners (Tokyo MOU)
Facts & Info about: India Ship Registration
- Ownership: Ships must be owned by Indian individuals or companies. Foreign entities can also own ships through an Indian company.
- Company Formation: The owning company must be registered in India, typically as a Private Limited Company under the Companies Act, 2013.
- Directorship: There must be at least one Indian resident director.
- Resident Agent: Not explicitly required.
- Office Address: The company must have a registered office in India.
- Annual Maintenance: Annual tonnage tax and maintenance fees must be paid.
- Inspections: Regular safety and compliance inspections as mandated by the Directorate General of Shipping (DGS).
- Financial Statements: Submission of annual financial statements and other regulatory documents as required by the Companies Act, 2013.
- Tonnage Tax System: India has a tonnage tax regime as per the Finance Act, 2004.
- Income Exemptions: : No tax on profits from the operation or management of an India-registered vessel.
- Capital Gains: No capital gains tax on the sale or transfer of an India-registered vessel or the shares of a shipping company.
- Registration Process: The registration process can take a few weeks depending on documentation and compliance with the Merchant Shipping Act, 1958.
- Merchant Shipping Act, 1958: Governs the registration, sales, and mortgages of ships.
- Finance Act, 2004: Regulates the tonnage tax system.
- Companies Act, 2013: Governs corporate formation and financial reporting.
- Flag State Control: India ensures compliance with international maritime regulations.
- Reputation: : India is on the Grey List of the Paris and of Tokyo MoUs.
- Support Services: India offers comprehensive maritime services including management, legal, and logistical support.
- Strategic Location: India’s strategic location offers advantages for global shipping operations. Significant presence in the Indian Ocean trade routes.