Centre allows majority Indian-owned vessels to register as Indian ships under new Merchant Shipping Act
The Centre has allowed vessels majority-owned by Indian citizens and other eligible entities to qualify for registration as Indian vessels under the Merchant Shipping Act, 2025. A gazette notification defines majority ownership as holding more tha...
A gazette notification enabling the decision defines majority interest as legal title to more than one-half of the shares into which a vessel's property is divided. Officials clarified meeting the ownership threshold does not automatically confer registration or Indian flag status and applications need to be moved to enable the same.
The Merchant Shipping Act, 1958, previously required vessels to be wholly owned by qualifying Indian citizens, companies or co-operative societies. The 2025 Act left the ownership proportion to be notified.
Eligible owners include Indian citizens, including non-resident Indians and overseas citizens of India, companies and bodies established by or under a central or state act, co-operative and multi-State co-operative societies, and limited liability partnerships. These entities must have their registered office or principal place of business in India, with societies and partnerships registered under applicable laws.
Where a non-resident Indian or overseas citizen of India owns the majority interest, registration requires an authorised representative: an Indian citizen resident in India, or a body corporate incorporated in India with its registered office or principal place of business in India.
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