REGISTRATION OF SHIPS & YACHTS IN PANAMA

The following is a brief outline of the procedures and requirements set forth in the laws of the Republic of Panama about the registration of ships and yachts. All inquiries concerning Panamanian matters within the terms of the present memorandum or other matters will be answered within the same day.

Basic to the registration requirements is the fact that the owner of a vessel registered under the Panamanian Laws could be an individual or a corporation. The owner may be Panamanian or foreign, residing in Panama or abroad, and the fact, which there are no minimum tonnage or age limitations.

1. PRELIMINARY CONSIDERATIONS
   
   If the vessel has a tonnage of more than 500 net tons, the provisional registration may be accomplished at certain Panama Consulates with maritime jurisdiction abroad or in Panama, at owners' option, but either case will require a Panamanian attorney as Representative.
   
   Provisional registration of a vessel can also be obtained expeditiously through the Panama Shipping Bureau in Panama, all other proceedings leading to the obtainment of the Permanent Navigation License. Once the name of the vessel to be registered is obtained, the availability of said name must be verified in the Merchant Marine General Directorate of the Maritime Authority of Panama.
   
   
2. PROVISIONAL NAVIGATION LICENSE
   
   The Provisional Navigation License is valid over six (6) months; extension periods can be obtained through the Panama Shipping Bureau if necessary, to secure complete presentation of the required documentation to apply for the Permanent Navigation License. The extension period will be of three months and a fine of five hundred dollars will be imposed.
   
   To request a Provisional Navigation License, the Panamanian Consulate or our law firm must be provided with the Registration Form duly completed. Upon review of the information, we will quote the pertinent registration charges and provide wire transfer instructions to the Client.
   
   Other documents to be gathered by the Client and provided to us are:
   
   (a) Bill of Sale
   
   Within a period of thirty (30) days after issuance of Provisional License (Patente Provisional), the Bill of Sale or the builder's certificate (whichever may be the case) must be registered in Panama. The Bill of Sale must be authenticated by a Notary Public, who will state, out of his own knowledge and not by way of deposition, which the seller of the vessel was, in fact, the owner of the ship and that the person acting on his behalf is duly authorized to such ends. The Bill of Sale must stipulate as well the acceptance of the sale by the buyer. The Notary's signature must, after that, be authenticated by a Panamanian Consulate or by apostille.
   
   IMPORTANT: If these authentications and legalizations are not completed, the document will have no legal value in Panama.
   
   The builder's certificate should clearly say that the vessel was built for and delivered to the owners, that the price has been paid for it, and an expression to the effect that title is being passed by the certificate in question, with the relevant description of the vessel. This document must also be notarized and legalized before a Panamanian Consulate or by apostille.
   
   In either case, the registration may be accomplished by the preliminary registration procedure at certain Panamanian Consulates.
   
   Other documents to be filed within the same period (30 days after issuance of provisional license), if done in Panama, and with the request for provisional registration, if done at a Panamanian Consulate, are:
   
   (b) Power of Attorney
   
   We will provide you the form of power of attorney to be signed by the owner of the vessel and legalized by a Panamanian Consulate, empowering our law firm to represent the owners in the handling of all legal affairs of the vessel before the Panamanian authorities.
   
   (c) Certificate of / or Consent to Deletion
   
   The Client or vessel owner must provide us with a certificate of deletion or a consent to deletion from the pertinent authorities from the prior country of registration, and it must be duly legalized by a Panamanian Consulate or apostille.
   
   
3. PERMANENT NAVIGATION LICENSE
   
   Once the title to the vessel has been recorded at the Public Registry, the Panama Shipping Bureau will issue, upon our special request, the Permanent Navigation License for the vessel, which shall be valid, as follows:
   
   1. The Permanent Navigation License (Patente Reglamentaria de Navegación) for yachts shall have a duration of two (2) years.
   
   2. The Permanent Navigation License for merchant vessels shall have a duration of four (4) years.
   
   Before the date of expiration of said navigation license, the owner must request the issuance of a new certificate for an equal time, if he presents proof of fulfillment of all fiscal obligations toward the Republic of Panama.
   
   
4. DUAL REGISTRATION OF CHARTERED VESSELS
   
   A foreign registered vessel may be registered in Panama under charter for two (2) years renewable period, so long as its country of registry consents to the special dual registration of the vessel in Panama, and a copy of the pertinent charter party, duly authenticated by a Panamanian Consul, or apostille is registered with the Panama Shipping Bureau.
   
   Under these circumstances, the advantages of the Panamanian Registry may be temporarily combined with the registry under another flag.
   
   A Panamanian registered vessel may also be registered in another jurisdiction under charter for two (2) years renewable period, so long as:
   
   1. The laws of this foreign registry provide for a similar system allowing for the special dual registration of their vessels under charter in the Republic of Panama; and
   
   2. The Panama Shipping Bureau gives its consent to such dual registration.
   
   The vessel subject to such dual registration will be subject to the law of the flag of temporary registration in safety and other matters relating to its operation, but remains subject to the Laws of Panama with respect to rights of ownership, mortgages and liens and to the payment of annual taxes.
   
   
5. YACHTS OR SPORT BOATS
   
   The government charges for the registration of yachts or pleasure boats and periodic maintenance are US$1,500. This fee will be of only US$1,000, provided the shipowner is of Panamanian citizenship or a Panamanian corporation. Accordingly, the ownership by a Panamanian corporation of a vessel will comply with this preferred requirement.
   
   No other annual fees, taxes, rates or other contributions will be payable with respect to yachts, except for the time of registration and thereafter every two years.
   
   There are no minimums nor in length or tonnage.
   
   
6. FISHING VESSELS
   
   This type of vessels follow the normal procedure with the exception that an additional requirement of a special certification issued by the Marine Resources General Directorate of the Maritime Authority of Panama must be filed with the petition.
   
   
7. PROFESSIONAL FEES FOR REGISTRATION OF A VESSEL or YACHT
   
   Our fees in connection with this matter are detailed as follows:
   
   Our fees for the registration of a ship or yacht are US$1,500.00.
   In addition to registration charges, other estimated expenses are US$500.
   
   Our fees include:
   
   1. Provisional Navigation License.
   2. Provisional Radio License.
   3. Permanent Navigation License.
   4. Permanent Radio License.
   5. Registration of Title of Ownership.
   6. Legal Representative Fees for the first year.
   
   Annual Resident Agent Fees after First Year will be US$200.
   
   Registration charges and expenses as well as annual taxes and duties are computed on the basis of the Gross and Net tonnage of the vessel.

Please contact us to send you the pertinent forms and power of attorney. Once this information is provided we can estimate the total sum to be paid in these concepts.

If you are a law firm or shipping professional with a volume of business, please contact us to discuss special details.