---
title: Panama law regarding flying foreign flags
url: https://www.allaboutpanamacity.com/guides/articles/ship-registration
summary: Explore the regulations, procedures, and benefits of ship registration under foreign flags in Panama.
date: 2024-09-20
lastmod: 2024-09-20
tags: bureaucracy
language: en
---


## Panama Legislation on Ship Registration under Foreign Flags

**Law 57 of August 6, 2008** governs Panama's general maritime law, encompassing matters related to ship registration, vessels, imports and exports, and maritime commerce. This law regulates the Panamanian legislation concerning the flying of foreign flags.

## What is a Flag of Convenience?

In the Republic of Panama, ships can be registered for two main purposes: Domestic Service or International Service. This registration can be done either under personal title or through a corporation. Ship registration is an administrative act where the state grants a vessel its nationality and authorizes it to fly the Panamanian flag (to hoist or display its national flag).

## Procedure

The ship registration process can be completed within **30 business days**. The legal representative must submit the registration application using the **PKI token**, along with all pre-supplied information from the ship owner, to the **General Directorate of Merchant Marine** in Panama or at an authorized Consulate of the Republic of Panama.

## How to Register a Foreign-Owned Ship in Panama

To register a ship for international service, the following documents are required:

- The original document designating the resident agent, granted by the owner, duly authenticated if issued abroad.
- Prima facie evidence of ship ownership or intent to acquire such ownership.
- Proof of payment of applicable taxes, fees, and dues.
- Any additional documents required by the **General Directorate of Merchant Marine**.

Ships for international service and foreign-registered ships navigating Panamanian jurisdictional waters must carry a navigation permit issued by the **General Directorate of Merchant Marine**. The technical requirements for such a permit will be set by the Directorate.

## Controversies and Criticisms

The registration of ships under the Panamanian flag accounts for **22.3% of the world's maritime fleet**. Recently, there has been a notable increase in the number of ships registered in Panama. This growth is attributed to measures taken by the **General Directorate of Merchant Marine** to streamline the registry by removing non-compliant ships while promoting the registration of newly built ships and those with higher tonnage.

Due to these stricter standards, Panama has been included for the first time on the **White List of the Paris Memorandum of Understanding (Paris MOU)**. This list comprises selected countries that meet the highest standards of maritime safety.