While the Panama Canal is known for facilitating maritime trade by connecting the Atlantic and Pacific oceans, Panama also has an important maritime jurisdiction for ship registration. Currently, Panama has the largest fleet of registered ships compared to any other flag. There are more than 8,250 naval vessels registered under the Panamanian flag. Total registered tonnage is over 83 million tonnes, accounting for approximately 23% of total tonnage worldwide.
The Republic of Panama has been offering various facilities for the registration of ships engaged in maritime activities for 73 years. Registering your yacht in Panama is quite simple and a provisional registration can be issued in less than 24 hours. Any person or company may register a ship under the Panamanian flag, regardless of nationality or place of origin. For example, if your yacht is currently owned by a UK LTD or BVI LTD, you can register your yacht in Panama under that LTD. You can also register as a private person and it should be noted that your nationality will not be an obstacle. Finally, if you wish, you can establish a Panamanian company without a director candidate to own your ship.
One of the biggest advantages of registering a ship in Panama is that there is no survey requirement for private yachts up to 20 years old. Most maritime jurisdictions require a recent survey by one of the main maritime research institutes, and the cost of this can reach thousands of dollars, although it is a process that takes time and effort.
