The Law No. 8 of 1925 of the Republic of Panama established the procedures for the nationalization of the Merchant Ships and granted Open Registry status to the Merchant Marine of Panama.

Law No. 2 of January 17th 1980 vested the administration of the National Merchant Marine in the Directorate General of Consular and Maritime Affairs, a Department of the Treasury Ministry.

In 1998, Decree Law No. 7 created the Panama Maritime Authority to unify the maritime competencies and re organized them into four Directorates: the Merchant Marine, Seafarers, Ports and Marine Resources.

The General Directorate of the Merchant Marine is responsible for the Registration and Administration of ships, application of Port State Control and compliance of the international regulations in Panamanian ships.

The main advantages that the Panama Ship Registry are :

• Worldwide Leadership in Vessel Registration Services and Maritime Tradition and Expertise for more than 75 years.
• Reliable Mortgage Registration System recognized by the international banking community.
• 24 hour worldwide registration services for Asia and Europe.
• Bareboat Dual Registration for a renewable period of two years.
• Access to benefits from the Mortgage Registration System and the Corporations Law.
• Strategic International Representation in more than sixty one (61) countries in the world through the Merchant Marine Consulates.
• Tax exemptions from profits obtained in the shipping activities.
• Special Discounts in registration fees of up to 20% for groups of 3 or more ships representing 50,000 to 100,000 GT, established by Law 36 of June 1995. 

Registration Procedures

The Panama Merchant Marine has no ownership restrictions for the registration of ships. Any person or corporation may apply for the registration of a ship independently of the nationality or residence of the owner.

The registration procedures are divided in two stages: first, the Provisional Registration and second, the Definite or Permanent Registration.

The first of these two stages begins with the application for the ship registration directly to the General Directorate of the Merchant Marine in Panama, through a Panamanian attorney, or to any of the Merchant Marine Consulates of Panama located around the world. Once the application is filed and the registration fees paid, the Provisional Registration Certificate (valid for 6 months) and the Provisional Radio License (valid for three months) are issued within in a period not exceeding 24 hours. The Provisional Registration Certificate or Patente may be renewed upon request for additional 3 months periods.

In the second stage, the legal representative in Panama appointed by the ship owner shall obtain both the Permanent Registration Certificate (valid for 4 years) and Permanent Radio License (valid for 4 years) from the General Directorate of the Merchant Marine in Panama, provided all the documentation required is presented accordingly.