How to register a ship in India

Which ships require registration

• Every Indian ship, unless its NT ≤ 15 tons and is employed solely in navigation on the coasts of India, shall be registered with the Principal Officer of MMD.
• Sea going ships fitted with mechanical means of propulsion of 15 tons net and above howsoever employed and those of less than 15 tons net employed otherwise than solely on the coasts of India are re required to be  registered under Part V of the Merchant Shipping Act, 1958.

Where can the ships be registered in India

•  In India , Ships can be registered only at ports designated as ports of registry namely Mumbai, Chennai, Kolkatta,  Goa & Cochin.
• The Principal Officers of these Ports of Mumbai,Chennai & Kolkatta and the surveyors in charge of  ports of  Goa & Cochin are  designated as the Registrar of Ships.
• In their capacity as Registrar of ships, the Principal officers and concerned Surveyors In-charge are required to maintain a complete record of ships on register indicating as on a particular date the person/persons, either in their individual capacity or as joint owners or as a corporate body, who have a stake in the ownership of ships.

Who can own Indian ships

• Not more than 10 individuals are entitled to be registered as a owner of a fractional part of a share in a ship, but a maximum of 5 persons could be registered as joint owners of a ship or of any share and shares therein. Joint owners by reason of the position as such cannot, however, dispose off in severalty, any share or interest therein.
• A ship shall not be deemed to be an Indian ship unless it is owned wholly by persons, each of whom satisfy the following description :
  • Citizen of India, or
  • Company, established by any Central or State Act, which has its principal place of business in India, as defined in section 3 of the Companies Act 1956, or
  • Co-operative society registered under the Co-operative Societies Act 1912 or any other law relating to co-operative societies in force in any State.

   

  • Company has to be registered under the said Act or any other earlier acts. It could either be a private or a public company.
  • A private company —
  • restricts right to transfer its shares,
  • limits number of its members to 50, and
  • prohibits public from subscribing for shares in it.

   

  • A public company is one which is not a private company.
  • Co-operative society has to be registered with the Registrar appointed by the State government. Its objective is the promotion of the economic interests of its members in accordance with co-operative principles.

Formalities to be observed for registration as Indian ship & documents required: 

• The owner of a ship wishing to have it registered at a port in India has to submit to the concerned Register:

Declaration of ownership

In one or the other prescribe forms, as may be applicable, depending upon whether he is a sole proprietor, joint owner or a company made before a Registrar, Justice of the peace or an Indian Consular Officer.

builder’s certificate

A certificate signed by the builder (builder’s certificate) of the ship containing a true account of the proper denomination and of the tonnage of the ship as estimated by him and the time, when and the place where the ship was built, (for new ship).

instrument of sale

The instrument of sale under which the property of the ship was transferred to the applicant who requires it to be registered in his name, (for secondhand ships)

14 days notice

To give a minimum of 14 days notice to the Registrar of the name proposed for the ship. The Registrar before registering the vessel in the name of the applicant shall obtain prior approval of the name from the Director General of Shipping who will also allot an official number for the ship.

Certificate of Survey.

On being satisfied that the ship, on the strength of the evidence placed before him, is entitled to be Indian ship, the Registrar arranges for survey of the ship by a surveyor for the determination of her tonnage in accordance with the Merchant Shipping (Tonnage Measurement) Rules, 1987 as amended from time to time, for the purpose of issue of a Certificate of Survey.

carving and marking note

After the formalities enumerated above have been gone through, the Registrar issues a carving and marking note. This note is to be returned to the Registrar after carving and marking have been duly carried out on the ship in the prescribed manner and certified by a Surveyor. The carving and marking involves the carving of the name of the ship conspicuously on each side of her bows as well as insertion permanently on her stern the name of the intended port of registry.

On completion of the preliminaries to registry as described in the preceding paragraphs, the Registrar enters the particulars of the ship such as :

1. 1. 1. 1. 1. Name of the ship and the port to which she belongs.
            2. Details contained in the Surveyors Certificate.
            3. Particulars respecting her origin as revealed in the declaration of ownership.
            4. the name and description of her registered owner and, if there are more owners than one, the number of shares owned by each of them; and
            5. Name of the Master, in the Registry Book. The Registrar issues thereafter to the owners a certificate of registry retaining the Surveyor’s certificate, builders certificate, instrument of sale by which the ship was sold, and the declaration of ownership.

Documents for registration – Sec. 27, 29 and 30

Following documents shall be submitted by the owner to the Registrar :

• Declaration of ownership containing following information :
• Particulars of the ship.
• When and where the ship was built.
• Particulars of its previous registry.
• Name of the Master and his certificate number. (Registry Rules)

• Number of shares owned by the declarer.

Property of a ship is divided into maximum 10 shares and each share can be jointly owned by maximum 5 persons. Sec. 25

• Signed in the presence of any one of the following : (Registry Rules)
• Special Executive Magistrate
• Commissioner of Oaths
• Indian Consular Officer (CO)
• Builder’s certificate containing the particulars of the ship. It is not required if the ship has been built outside India. If false statement is made in this certificate, fine Rs.1000.

• Instrument of sale.
• Permission of D.G. Shipping if the ship is built outside India. (Registry Rules)
• Certificate of survey signed by a surveyor appointed by the Registrar, certifying the tonnage and full particulars of the ship.
• Name of the ship, as proposed by the owner and approved by D.G. Shipping. (Registry Rules)
• Allotment of Official number and Call sign by D.G. Shipping. (Registry Rules)
• Carving and Marking Note signed by a surveyor appointed by the Registrar, certifying that following markings have been made on the ship : (Registry Rules)

• Name of the ship on either side of the bow and at the stern.
• Port of registry at the stern.
• The above names shall be in Hindi and English, and the Hindi names shall be in superior position to the English names. They shall be marked on a dark background in white or yellow letters or on a light background in black letters. Each letter shall be at least 1 decimetre in height and at least 1.3 centimetres in width.
• Official number and NT, marked on a brass plate 30 ´ 6 cm. and affixed in a conspicuous place on the navigating bridge on the main beam.
• Draft marks cut or welded in metres and decimetres both forward and aft, on port and starboard sides.
• If any markings are altered, fine Rs.100.
• If any person makes a false statement in any declaration or document he may be imprisoned for 6 months or fined Rs.1000 or both. Sec. 436(2)(16)

Formalities connected with registration of an Indian ship when acquired abroad. 

• When a ship is built or acquired out of India and becomes the property of a person qualified to own an Indian ship, the owner or the Master of the ship will have to apply to the Indian Consular Officer at the nearest port for the issue of a provisional certificate of Indian registry and such officer, on production of satisfactory proof of ownership, grant the same to the owner or the Master.
• Such a certificate has all the force of a certificate of registry. It is, however, valid for a period of 6 months from its date of issue or until the arrival of the ship at a port where there is a Registrar whichever first happens and on either of these events happening would cease to have effect. The provisional certificate so issued will have to be exchanged by the owner for a certificate of registry from the concerned Registrar.
• Quite often a ship has to set sail from a port where she is built in India to a port where she has to be registered. The owner in such cases or where he has applied to the Registrar for registration but delay in the issue of certificate of registry is anticipated, the Registrar may, on the strength of the authority issued by the Director General of Shipping, issue a temporary pass to enable the ship to ply between the ports in India.

Certificate of Registry

• The Certificate of Registry has to be used only for the lawful navigation of the ship and is not to be detained by reason of any lien, mortgage of interest whatsoever claimed by any party.
• Anybody having possession of the certificate of registry has to make it over to the person entitled to its custody as otherwise he becomes liable for being summoned before a Magistrate and examined on the issue touching his refusal to surrender the certificate to the one entitled to it.
• No change in the name already in the registry is permitted except in accordance with the procedure laid down in the M.S.(Registration of Ships) Rules, as amended from time to time.
• Application for the registry of alterations to a ship will have to be made to the Registrar within one month of the alterations.
• Where the alterations are material so as to affect the principal dimensions of a ship or the means of propulsion, a ship will have to be registered as new and, in that event, rules applicable for first registry will come into force.
• Where a ship is registered under circumstances envisaged in paragraph immediately above this, the original certificate of registry stands cancelled and the existing entries in the registry, remain closed. The original official number allotted to ship, is however, retained.
• Where transfer of a port of registry is desired by all the parties having a stake in the ownership or otherwise of the ship, they shall apply to the Registrar of her port of registry, who may, with the prior approval of the Director General of Shipping have no objection to such transfer subject to such formalities as has been laid down in the M.S. (Registration of Ships) Rules and on payment of the requisite fees prescribed thereof.

Endorsement of change of Master

• Whenever there is any change in the Master of an Indian ship, in whatever the way the change has come about, a memorandum of change has to be endorsed and signed on the Certificate of Registry by the Presiding Officer of a Marine Board or a Court if the change of Master is brought about as a result of the findings of the Marine Board of Inquiry or the Registrar or any other officer authorized by the Central Government or the Indian Consular Officer depending upon whether the change has occurred in India or abroad.

Loss of Ship

•  In the event of an Indian Ship being either actually or constructively lost, taken by the enemy, burnt or broken up or ceasing for any reason to be an Indian ship, every owner of the ship or any share in the ship is required to give a notice thereof to the Registrar and thereupon the Registrar will make an appropriate entry in the Register Book and the entry of the ship in that book would then be deemed mortgage that lies unsatisfied on that date will, continue to remain in force. The Master of such a ship, if the event accrues in India, will immediately make over the Certificate of Registry to the Registrar or within a period of 10 days after his arrival in India if the event occurs elsewhere.

Transfer or acquisition of an Indian ship or interest therein : 

• As per amendment to Section 42 of the M. S. Act no prior permission from the Director General of Shipping is required for creation of any mortgage on a ship except during the period when the security of India or any part of the territory thereof is threatened by war or external aggression. Similarly the Director General of Shipping’s prior approval for the sale of the ship is not required provided:

1. 1. 1. 1. 1. all wages and other amounts due to seamen in connection with their employment on that ship have been paid in accordance with the provisions of this Act.
            2. the owner of the ship has given notice of such transfer or acquisition of the ship to the Director General.

• Any such transfer can be effected only by an instrument in writing in the prescribed form and the instrument, as may be so drawn up, has to contain a full description of the ship as is generally contained in the Surveyors ‘ certificate sufficiency to identify the ship by the Registrar and be in the form (Registration Form No.9) prescribed in the M.S. (Registration of Ship’s) Rules, 1960, as amended from time to time. The owner of an Indian ship or a share therein wishing to transfer it in favour of somebody else will have to apply to do so with full particulars of the transferee. Where the instrument of sale refers to a consideration other than money, and if the Registrar has any doubt as to whether that constitutes a good condition, a decision therein will lie on the Director General of Shipping to whom the matter may have to be referred.
• If the transaction has been concluded in India, the instrument of Sale referred to above accompanied by a Declaration of Ownership and the prescribed fee thereof has to be produced by the transferee to the Registrar of the port where the ship has been registered who will make appropriate entries in the Register Book and also suitably endorse on the instrument the date and hour of the entry. The Registrar has also to make as soon as possible suitably endorsement on the Ship’s Certificate of Registry. Every such transaction has to be reported to the Director General of Shipping.

Transmission of an Indian ship or interest therein :

• Where the property in an Indian ship or share therein is transmitted to a person on the death or insolvency of the registered owner or by any lawful means other than a transfer described as above, it would be effected by an application made to the Registrar of the ship’s port of registry accompanied by a declaration in the prescribed form identifying the ship and also a statement of the manner in which and the person to whom the property has been transmitted. In the case of transmission consequent on insolvency, a declaration of transmission has to be accompanied by proof of such claim. In the case of transmission as a result of death, the declaration of transmission shall be accompanied by a Succession certificate, probate or letters of Administration, under the Indian Succession Act, 1925 or a duly certified copy thereof. The Registrar on receipt of the declaration of transmission will make appropriate entry in the register book to give effect to the change in the ownership.
• Where as a result of the transmission of property in a ship or share there on death or insolvency or otherwise a ship ceases to be an Indian ship, the Registrar of Port of her registry will have to submit a report to the Central Government through the Director General of Shipping setting out the circumstances in which the ship has ceased to be an Indian ship. On receipt of such a report, Central Government can make an application to the High Court for a direction for the sale of such Ship to any Indian citizen or any Indian company. Such an application may have to be made to the High Court by the Government within 60 days from the date of receipt of the report.

Registry of Government ships 

A ship owned by Government is also registered in the same manner as other Indian ships subject to the following modifications :

1. 1. 1. 1. 1. the application for registry has to be made by the Secretary of the Ministry concerned or the Head of the Department to whom the management of the ship is entrusted or any other officer nominated by the Central /State Government with the particulars, as detailed below:
            1. name and description of the ships
            2. ii) a statement of the time and the place where the ship was built and, if these particulars are not known, a statement to that effect, and of the former name, if any known:
            3. a statement of the nature of the title to the said ship; and

1. 1. 1. 1. 1. The name of the Master.
            2. No declaration of ownership is necessary.
            3. The Registrar on receiving the application and on compliance with the necessary formalities will enter the ship in the registry book as belonging to Government, State or Central.
            4. The transfer of a registered Government ship has to be made by an instrument of sale in the prescribed form from which should be omitted from the portion relating to the covenant. The instrument will have to be signed on behalf of the transferee by an officer authorized by Government, Central or State.

At the request of the owners of Indian ships desiring to be known at sea, signal letters are allotted by the Director General of Shipping, who will control the series that may be so issued. The allotment of such signal letters are required to be noted in the Register Book and endorsed suitably on the Certificate of Registry. The allotment of signal letters will form subject matter of a communication by the Director General of Shipping to the Wireless Adviser, Ministry of Communication, New Delhi

There is no bar for re-registration of an abandoned or wrecked ship. In such cases the owner may have to specify whether he desires to retain the ship’s previous name or have a change. The formalities to be observed in such cases are the same as are applicable to a ship on first registry but subject to the condition that a ship so coming up for registration is required to be surveyed by a Surveyor and a certificate as to its seaworthiness obtained. All outstanding mortgage or other encumbrances on the ship will continue to be in force and may have to be brought forward in the new registry.

A certified copy of the entries appearing in the register book will be available to any interested party on application accompanied by prescribed fees laid down in the Registration of ships rules. The Registrar can entertain request accompanied by prescribed fees for issue of a new certificate on the plea that the original certificate has been defaced or mutilated. In that event, the certificate so issued will be marked “duplicate” in red ink.

The Director General of Shipping is required to : 

• Maintain a Central Register which would contain not only the names of all ships but also entries relating to every Indian ship that stand recorded at the various ports of registry. Details of the Registry Of a ship as well as every subsequent entry relating to that ship recorded in the Register Book are required to be communicated to the Director General Of Shipping as and when the events occur. On or before the 15th January of each year, Registrars of each Port are required to submit to the Director General of Shipping a return showing the number of ships with their tonnage registered in the register book during the previous year.

Executive Orders:

• The Director General of Shipping has assigned the work of maintaining the Central Register of Ships to the Nautical Adviser. All Principal Officers have been directed to send their returns, including the transcript of registry, to the Nautical Adviser so that he should be able to maintain the Central Register.

The following documents are admissible in evidence in respect of any proceedings that may come up in Court touching upon:

(a)      Any registry on its production in custody of Registrar or any other person having the lawful custody thereof.

(b)      A Certificate of Registry purporting to be signed by the Registrar or any other officer authorised in this behalf by the Central Government.

(c)      An endorsement on the Certificate of Registry purporting to be signed by the Registrar or any other officer authorised in this behalf by the Central Government;

(d)      Every declaration made in pursuance of provisions contained by Part V of M.S. Act 1958, in respect of an Indian ship.

(e)      A certified copy of an entry in the Register book is admissible in evidence in any proceedings in a Court and have the same effect as the original entry in the Register book.

DG SHIPPING GUIDELINES ON REGISTRAION OF INDIAN SHIPS

No:SD-13/POL(5)/2001 dated 3rdMay, 2002

Subject: Guidelines on registration of Indian ships in accordance with para 1.2 of Office Memorandum No. SD-11018/1/97-MD dated 5th march, 2002 issued by Government of India, Ministry of Shipping, New Delhi

1. The guidelines on registration including provisional registration of Indian ships and recording of mortgage issued by the Director General of Shipping and ex-officio Addl. Secretary to the Government of India, in accordance with para 1.2 of Office Memorandum No. SD-11018/1/97-MD dated 15th June, 2001, as amended by Office Memorandum of even number dated 5th March, 2002, of the Ministry of Shipping, is forwarded herewith for necessary action.
2. The Director General of Shipping and ex-officio Addl. Secretary to the Government of India, exercising the powers conferred by clause (1) of Section 456 of the Merchant Shipping Act, 1958 (on the Central Government) read with notification issued by Government of India vide S.O. No. 3144 dated 17th December, 1960 delegating the said power to him and in addition to the instructions contained in Office Memorandum No. SD-11018/1/97-MD dated 15th June, 2001 and as amended by Office Memorandum of even number dated 5th March, 2002 of the Ministry of Shipping, Government of India and in pursuance thereto has now exempted the ships from the following provisions of Merchant Shipping (Registration of Indian Ships) Rules, 1960 as amended in 1966, 1970, 1994, 1997 and till date so that

1.  The requirement to obtain permission of the Director General of Shipping to register a ship, if a ship is built in shipyard other than an Indian Shipyard as required vide clause (d) of Rule 3 of Merchant Shipping (Registration of Indian Ships) Rules, 1960 as amended in 1994, has been exempted and is no longer necessary.
2. The requirement for the ship to be surveyed, tonnage measured and certificate of survey granted exclusively by a surveyor, in accordance with Rules 5 and 9 of Merchant Shipping (Registration of Indian Ships) Rules, 1960, has been modified. Classification surveyor has also been authorized to certify the Carving and Marking Note in addition to surveyors. Rule 9 of Merchant Shipping (Registration of Indian Ships) Rules, 1960 may be read accordingly.
3. The Registrar of Indian ships is required to open a page in the Register on provisional registration of an Indian ship. Entering the mortgage in the Register is permitted on provisional registry of Ship. Rule 12 of Merchant Shipping (Registration of Indian Ships) Rules, 1960, may be read accordingly.
4. The requirement to register the mortgage with the Registrar of Companies prior to registering the mortgage or entering the discharge in the Register as stipulated in Rule 28 of Merchant Shipping (Registration of Indian Ships) Rules, 1960 has been exempted. (e) Fee for registration of mortgage will be limited to Rs. 500/- on second and subsequent ships where the same mortgage is registered on more than one ship. Rule 39 (Sl. 3 of Schedule 2) may be read accordingly.