OFFICIAL GUIDE TO SHIP & YACHT REGISTRIES

Lithuania

Shipowner Eligibility 

According to Article 8.1 of the Law on Merchant Shipping of Lithuania a vessel can be registered in the Register of Marine Vessels of the Republic of Lithuania, provided it is designed and built for navigation at sea and the documents confirming this fact and owned by either a Lithuanian citizen or legal person registered in Lithuania.

About the Flag

Lithuania is situated on the eastern coast of the Baltic Sea bordering Latvia, Belarus, Poland, and Russia. The official language is Lithuanian, and the capital is Vilnius. The Republic is a full member of the United Nations. The President is the Chief of State, and the Premier is the Head of Government. There is a unicameral Seimas (Parliament). The legal system is based on civil law. The monetary unit is the Lithuanian Litas.

Since acquiring independence from the Soviet Union in 1990, Lithuania has made steady progress in developing a market economy. Much of the state property has been privatized, and trade is diversifying.

The laws which govern Lithuanian ships registration include the Regulations on Registration of Seagoing Ships of the Republic of Lithuania (2005), the Maritime Safety Law of the Republic of Lithuania (2005), and the Merchant Shipping Law of the Republic of Lithuania (1996), among other legislation.

Company Formation

According to the Law on Enterprises adopted on May 8, 1990, an enterprise is an economic unit which has its own name and is established to carry out certain commercial and economic activities. The following types of enterprises are permitted to function: personal, general partnerships, limited partnerships, public, private and investment companies, state (local) government enterprises, agricultural companies and cooperative societies.

A foreign company may operate a representative office in the Republic of Lithuania, however, only one type of representative office may be established. A representative office acts in accordance with a power of attorney issued by its foreign parent, and is established for promotional and representational purposes. The representative office does not have the capacity of a legal person and may not conduct independent commercial activity. It may not have a settlement account, but may open an account solely to cover the necessary expenses of the office. All enterprises with foreign capital and foreign representative offices register with the Ministry of Economy of the Republic of Lithuania. Permission to begin commercial activities must be received from the local municipal authorities prior to start of operations. All companies must record their firm name with the State Patent Bureau prior to their company registration (with certain exceptions). After the submission of an application and related documents, the Ministry of Economy has up to 14 days to make its decision on registration of an enterprise.

Lithuanian law provides for the establishment of three types of group enterprises: concerns; consortia; and associations.

A concern is an economic structure that unites independent companies related by common interests, agreements on patents and licenses, joint scientific research and production technology programs, or close cooperation. A concern is established through the acquisition of shares in other companies. The largest member company or a special holding company is responsible for the management of the concern.

Consortia are temporary, voluntary groups of enterprises brought together to implement large projects and programs, or resolve concrete issues. A consortium may be established as a partnership or by joint venture agreement.

An association of enterprises is a voluntary group of enterprises that represents the economic interests of its members, and coordinates and executes matters brought to its attention by the membership. The following forms of association are recognized: an enterprise association; and a Chamber of Industry and Commerce.

A company's accounting and financial statements must be inspected after the end of the business year and prior to the general meeting of shareholders. A properly qualified inspector or auditor must perform the inspection or audit.

The most popular type of enterprise in Lithuania both for local and foreign investment is the private company. The authorized capital of the Private Company is divided into shares and its shareholders enjoy limited liability. Private company can be formed for any types of business not prohibited by the laws of Lithuania. The private company must have a head of administration and accountant. There are no requirements for their nationality, but it should be noted that from the other legal acts it would follow that knowledge of the Lithuanian language is necessary. Also work permits and temporal or permanent living permit requirements are applicable to the foreigners (the head of administration who is non-Lithuanian nationality does not need the work permit).

Taxation

The profit tax is imposed on enterprises with the rights of legal persons and is equal to 29% of taxable profit or 10% of taxable profit assigned to further investments.

Withholding Tax Rate: dividends - 29%, Interest - 15%, royalties from trademarks, licenses and business names - 10%, payments for consultancy, marketing and mediation services -15%, payments to offshore companies - 29%.

Shifting of Net Operating Losses: carry back - not allowed, carry forward - up to 5 years.

Other taxes include excise taxes, tax on real property of the enterprise, land tax, and the state levy.

Deductions from incomes are in accordance with the Law of the Republic of Lithuania on Roads Fund.
VAT shall be charged at the rate of zero percent for exported goods and services (some exceptions) and 18% for all other goods. Tax incentives for foreign investors that were eliminated as of 1 April 1997, continue to apply to foreign investments made prior to that date. Enterprises registered and operating in a free economic zone benefit form additional incentives.

Lithuania has signed and ratified double taxation agreements with Belorussia, China, Czech Republic, Denmark, Estonia, Finland, Norway, Poland, Sweden, Moldavia, Latvia, Germany, Canada, Italy, Ukraine, Ireland, Kazakhstan.

If no relief is available under a double taxation treaty, a foreign tax credit is available to Lithuanian companies for foreign taxes paid on income earned abroad. The amount of the credit may not exceed of the profit tax that would have been paid if the profit earned in the foreign country were taxed under Lithuanian law. Lithuanian companies may claim the foreign tax establishing payment of the foreign tax.

Registration and Documentation

Vessels registered in the Register of Marine Vessels of the Republic of Lithuania are entitled to fly the Lithuanian flag. In order to register a ship in the Register of Marine Vessels of the Republic of Lithuania, a shipowner must submit following documents to the Administration:
• Original written request to register the ship, where the proposed name of the ship should be indicated
• Duly completed application form for the registration
• Original or notarized copy of documents proving the ownership of the ship. If such a document is written not in Lithuanian, it shall be translated to Lithuanian language and notarized
• Deletion Certificate (if the vessels was previously registered)
• Temporary permission to fly Lithuanian flag (if was issued by Lithuanian Consular Official)
• Notarized copy of Juridical Person’s registration certificate, or Lithuanian citizen’s ID. This requirement is only applicable registering the first vessel of the same owner.
• Copy of the Certificate of Measurements of the ship, issued in accordance with TONNAGE 69 Convention
• Original permission to use radio station of the ship (this document is returnable)
• Copy of the Seaworthiness Certificate of the ship
• Certificate from Fisheries Department (this requirement is only applicable for registration of fishing vessel)
• Report on initial survey of the ship

Before registering the vessel the Administration shall verify its identity using the IMO Ship Identification Number and satisfy oneself that the ship does not fly the flags of two or more states simultaneously.
If during initial survey it was established that vessel has all documents and equipment required by international conventions ratified by Lithuania, other legal acts and requirements of the classification society, vessel is normally registered in the Register of Marine Vessels of the Republic of Lithuania within 3 working days, and for the shipowner the following documents are issued:
• Registration Certificate
• Permission for the vessel to fly the Lithuanian flag
• Safe Manning Certificate

If during initial survey it was established that condition of the vessel and its equipment does not correspond with the requirements of international conventions ratified by Lithuania, other legal acts and requirements of the classification society, not all documents required by international conventions ratified by Lithuania or Lithuanian legislation are on board of vessel or documents are invalid, also when prior to the ship’s registration it was supervised by the classification society which is not authorised in Lithuania, the vessel is registered in the Register of Marine Vessels of the Republic of Lithuania, but the Permission for the vessel to fly Lithuanian flag is not issued.
After all deficiencies were rectified or supervision of the vessel was entrusted with a classification society authorised by Lithuania, a ship must be submitted for the survey once again. The Administration will not register a vessel, if:
• Not all documents, required by the Rules of Registration of Marine Vessels were submitted
• It is ascertained that data provided in the documents is wrong
• The proposed ship’s name does not correspond with the requirements of the Rules of Ships Names

In case there is a change of the owner, the ship must be registered following the same procedure. In case there is a change of the vessel’s name or other data on vessel, shipowner must notify the Administration not later than within 10 days, also enclosing documents proving such changes and Registration Certificate, Permission for the vessel to fly the Lithuanian flag, Safe Manning Certificate. After the corrections have been done in the Register of Marine Vessels of the Republic of Lithuania, the shipowner is issued with the new Certificates.

Bareboat Charter Registration

Both bareboat-out and bareboat-in are allowed in Lithuania. If a vessel is chartered to a Lithuanian citizen or legal person registered in Lithuania, the same documents must be submitted to the Administration as for initial registration of a ship together with the following additional documents in their original:
• Notarized copy of bareboat charterparty
• Extracts from the original register stating the owner and the mortgagor or other person have a security interest in the vessel
• Permission of the appropriate official body of the original registration state confirming that the right to fly the flag of the original registration state is suspended for the validity of the bareboat charterparty
• Permission of the owner of the ship that the ship will be registered in the Register of Marine Vessels of the Republic of Lithuania during the validity of the bareboat charterparty

Prior to its registration, an initial survey of a vessel will be conducted. A vessel will be registered for the period of validity if the bareboat charterparty. According to Article 82.2 of the Law on Merchant Shipping, a bareboat chartered vessel, temporarily flying Lithuanian flag, cannot be mortgaged in Lithuania. All questions regarding mortgages or other similar encumbrances shall be dealt in accordance with the laws of the country of original registration.
After the registration of the vessel in the Register of Marine Vessels of the Republic of Lithuania, the vessel is entitled and must fly only the Lithuanian flag during the whole period of the registration. A Lithuanian vessel can also be chartered to a foreign person. In case a charteree is willing the vessel to fly non Lithuanian flag, the right to fly Lithuanian flag can be suspended for the validity of the bareboat charterparty, and the vessel will be entitled to fly the flag of chosen state.

Vessel and Yacht Eligibility & Survey Requirements

Vessels which are not eligible for registration in the Register of Marine Vessels of the Republic of Lithuania:
• War ships
• Coast guard vessels
• Ships which belongs to the main ship as rescue boats or technical inventory
• Sport and pleasure boats

Prior to the registration in the Register of Marine Vessels of the Republic of Lithuania, initial survey shall be conducted for every ship by the Administration’s inspector or a representative of a classification society authorised by the Administration. Only the Administration’s inspector is allowed to conduct initial survey, when:
• A vessel is in the territory of the Republic of Lithuania
• A vessel is a passenger ship or passenger ferry
• A vessel for carriage of cargo in bulk is older than 20 years

According to Article 15 of the Law on Safety of Shipping, the technical supervision of ships registered in the Register of Marine Vessels of the Republic of Lithuania shall be performed by authorised classification societies:
• ABS Europe
• Bureau Veritas
• Det Norske Veritas
• Lloyd’s Register
• Polish Register of Shipping
• Russian Maritime Register of Shipping

Crewing

At least two-thirds of the crew must be the citizens of the Republic of Lithuania or another EU Member State. Only European Union citizens can be the Captain of a ship and the Chief Engineer of the vessel flying under the Lithuanian flag. The captain of the ship, his mate, engineer of the ship, ship electrician and radio operator must have the valid Certificates of Competence. The requirements for the Certificates of Competence are determined by the Ministry of Transport which are prepared in accordance with the requirements of Convention on Standards of Training. Certification and Watchkeeping for Seafarers, 1978 with its 1995 amendments. Certificates are issued by the Lithuanian Maritime Safety Administration. The minimum number of the crew should be approved for each vessel in correspondence to requirements of safe navigation, International Labour Organization and laws of Lithuania. In addition, it is worthwhile to note, that incomes of the seafarers, working on board Lithuanian-flagged vessels, are taxed by 15% comparing to 33% applicable for other persons working under employment contra

Mortgages

Vessels, registered on Lithuanian Ships Register or Ships Book can be mortgaged in accordance with requirements of Lithuanian Law on Mortgage and Law on Merchant Shipping. The ship is mortgaged with all equipment and belongings which are necessary for its navigation or voyage and which are on vessel at the moment of conclusion of the mortgage agreement. Equipment and belongings of the mortgaged vessel must be listed in mortgage bond, except those, which do not belong to the owner of vessel. The mortgage of the vessel does not cover fuel, oils, as well as cargo belonging to the shipowner or other person. There is no compulsory requirement to state in the mortgage bond the location of the mortgaged vessel at the moment of conclusion of the mortgage agreement. The application to register, amend or cancel the ship mortgage should be submitted to the Mortgage Office of Klaipeda District Court.

The vessel can be mortgaged either by the mortgage agreement or by unilateral declaration of the owner of the vessel. When the vessel is mortgaged by a mortgage agreement, the mortgage bond shall be signed by the mortgagor, the owner of the mortgaged vessel (where the mortgagor and the owner of the mortgaged vessel is not the same person) and the mortgagee. Where vessel is mortgaged by the unilateral declaration of the owner of the mortgaged vessel the mortgage bond must be signed by the owner of the mortgaged vessel. The mortgage bond must be notarised and registered according to law requirements. The mortgage bond must indicate:
• The mortgagor
• The owner of the mortgaged vessel
• The mortgagee
• The property to be mortgaged (its location, the identification number and other identification particulars)
• The amount of debt to be secured by the property or the maximum secured amount of the obligation
• The date of performance of the obligation
• The interest
• If the obligation is to be performed at request on the date from which the creditor may claim the performance of the obligation; if a conditional mortgage is to be registered on the condition under which the mortgage will be valid, or the condition upon the fulfillment is whereof the mortgage shall become effective also the conditions which must be covenanted at the request of one of the parties.

The mortgaged vessel cannot be registered out from Lithuanian Ships Register or Ships Book unless the mortgage is finished or there are written consents, approved by the public notary, of all creditors to do so. The temporal permission to fly under the foreign flag for vessel registered in Lithuanian Ships Register or Ships Book cannot be issued until the mortgages of the vessel are finished. This requirement is not applicable if written consents, approved by public notary, are given by all creditors. Vessels which are registered in foreign ports and have the temporary permission to fly under the Lithuanian flag cannot be mortgaged in Lithuania.

In the event of multiple mortgages of a vessel, claims of the mortgagees shall be satisfied according to the time of their application for registration at the mortgage office. With the conveyance of the mortgaged vessel to some other person, the mortgage shall follow the vessel. A request for the performance of the debt obligation secured by a mortgagee made only subject to the production of the mortgage bond. If the mortgagor defaults on the debt obligation secured by mortgage under the agreement, the mortgagee may file a petition for foreclosure to the mortgage office. Within three working days the mortgage judge shall hand down an order of attachment of the mortgaged vessel and shall make an entry thereof in the Register of Mortgages and no later than on the following day shall notify the ship register and shall warn the mortgagor and the owner of the mortgaged vessel that in the event of failure to settle the debt within one month, the mortgaged vessel shall be sold by auction. If the debt is not repaid within one month following the day of the attachment of the mortgaged vessel, the mortgagee shall file a repeated petition to the mortgage office for the recovery of the debt with the mortgage bond attached. The foreclosure sale of the mortgaged vessel releases vessel from all mortgage and encumbrances only if at the moment of its sale, the vessel was in the territory of the Republic of Lithuania.

Fees

Tiltle of documents / services rendered
Fee, Euros

Ship's registration at the Register of Seagoing Ships of the Republic of Lithuania
28
Ship's registration at the Register of Seagoing Ships of the Republic of Lithuania upon the changes of the name of the ship, name of the shipowner or legal address of the shipowner
16
Ships' deletion from the Register of Seagoing Ships of the Republic of Lithuania
35
Duplicate of the Certificate of Ship's Registration at the Register of Seagoing Ships of the Republic of Lithuania (issued in case when the certificate is lost or destructed)
6
Certificate of Ship's Temporary Registration at the Register of Seagoing Ships of the Republic of Lithuania (Bareboat Charter)
28
Duplicate of the Certificate of Ship's Temporary Registration at the Register of Seagoing Ships of the Republic of Lithuania (Bareboat Charter) (issued in case when the certificate is lost or destructed)
6
Permit to Fly Lithuania's State Flag
10
Duplicate of the Permit to Fly Lithuania's State Flag (issued instead of lost or destructed certificate)
6
Temporary Permit to Fly Lithuania's State Flag
10
Duplicate of the Temporary Permit to Fly Lithuania's State Flag (issued in case when the certificate is lost or destructed)
6
Certificate of Suspension of the Permit to Fly Lithuania's State Flag
10
Minimum Safe Manning Document
20
Duplicate of the Minimum Safe Manning Document (issued in case when the certificate is lost or destructed)
6
Certificate of Insurance or other Financial Security in Respect of Civil Liability for Bunker Oil Pollution Damage
3
Duplicate of the Certificate of Insurance or other Financial Security in Respect of Civil Liability for Bunker Oil Pollution Damage
2
Certificate of Insurance or other Financial Security in Respect of Liability for Damage caused by Hazardous and Noxious Substances (HNS)
3
Duplicate of the Certificate of Insurance or other Financial Security in Respect of Liability for Damage caused by Hazardous and Noxious Substances (HNS)
2
Certificate of Insurance or other Financial Security in Respect of Civil Liability for Oil Pollution Damage
3
Duplicate of the Certificate of Insurance or other Financial Security in Respect of Civil Liability for Oil Pollution Damage
2
Certificate of Insurance or other Financial Security in Respect of Liability for the Death of and Personal Injury to Passengers
3
Duplicate of the Certificate of Insurance or other Financial Security in Respect of Liability for the Death of and Personal Injury to Passengers
2
Ship's Continuous Synopsis Record (CSR) Document (Form 1)4.293.13Duplicate of the Ship's Continuous Synopsis Record (CSR) Document (Form 1)
2

Contact

Lithuanian Transport Safety Administration
Švitrigailos g. 42,
LT - 03209 Vilnius,
Lithuania.
Phone: +370 5 278 56 01,
Fax: +370 5 213 22 70,
E-mail: ltsa@ltsa.lrv.lt

Stockholm Agreement 96
IMO Convention 48
* IMO amendments 91 
* IMO amendments 93
SOLAS Convention 74
SOLAS Protocol 78
SOLAS Protocol 88
LOAD LINES Convention 66
LOAD LINES Protocol 88
TONNAGE Convention 69
COLREG  Convention 72
CSC Convention 72
CSC amendments 93
SFV Protocol 93
STCW  Convention 78
STCW-F Convention 95
SAR  Convention 79
STP Agreement 71
STP Protocol 73
IMSO Convention 76
INMARSAT OA 76
INMARSAT amendments 94
INMARSAT amendments 98
IMSO amendments 2006
IMSO amendments 2008
FACILITATION Convention 65
MARPOL 73/78 (Annex I/II)
MARPOL 73/78 (Annex IV)
MARPOL 73/78 (Annex V)
MARPOL Protocol 97 (Annex VI)
London Convention 72
London Convention Protocol 96
INTERVENTION Convention 69
INTERVENTION Protocol 73
CLC Convention 69
CLC Protocol 76
CLC Protocol 92
FUND Convention 71
FUND Protocol 92
FUND Protocol 2003
NUCLEAR Convention 71
MARPOL 73/78 (Annex III)
PAL Protocol 76
PAL Protocol 90
PAL Protocol 02
LLMC Convention 76
LLMC Protocol 96
SUA Convention 2005
SUA Protocol 2005
SALVAGE Convention 89
OPRC  Convention 90
HNS Convention 96
OPRC/HNS 2000
BUNKERS CONVENTION 01
ANTI FOULING 01
BALLASTWATER 2004
NAIROBI WRC 2007
HONG KONG CONVENTION
HNS PROT 2010
Cape Town Agreement 2012
SUA Convention 88
SUA Protocol 88

IMO Conventions

Status of Conventions Lithuania

IMO Convention 48 x
SOLAS Convention 74 x
SOLAS Protocol 78 x
SOLAS Protocol 88 x
SOLAS Agreement 96
LOAD LINES Convention 66 x
LOAD LINES Protocol 88 x
TONNAGE Convention 69 x
COLREG Convention 72 x
CSC Convention 72 x
CSC amendments 93
SFV Protocol 93 x
Cape Town Agreement 2012
STCW Convention 78 x
STCW-F Convention 95 x
SAR Convention 79 x
STP Agreement 71
Space STP Protocol 73
IMSO Convention 76
INMARSAT OA 76
IMSO amendments 2006
IMSO amendments 2008
FACILITATION Convention 65 x
MARPOL 73/78 (Annex I/II) x
MARPOL 73/78 (Annex III) x
MARPOL 73/78 (Annex IV) x
MARPOL 73/78 (Annex V) x
MARPOL Protocol 97 (Annex VI) x
London Convention 72
London Convention Protocol 96
INTERVENTION Convention 69
INTERVENTION Protocol 73
CLC Convention 69
CLC Protocol 76
CLC Protocol 92 x
FUND Protocol 76
FUND Protocol 92 x
FUND Protocol 2003 x
NUCLEAR Convention 71
PAL Convention 74
PAL Protocol 76
PAL Protocol 90
PAL Protocol 02 x
LLMC Convention 76 x
LLMC Protocol 96 x
SUA Convention 88 x
SUA Protocol 88 x
SUA Convention 2005
SUA Protocol 2005
SALVAGE Convention 89 x
OPRC Convention 90 x
HNS Convention 96 x
HNS PROT 2010
OPRC/HNS 2000
BUNKERS CONVENTION 01 x
ANTI FOULING 2001 x
BALLASTWATER 2004 x
NAIROBI WRC 2007
HONG KONG CONVENTION

x= ratification
d=denunciation

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