India opens ship registry to vessels with majority Indian ownership

India has widened eligibility for its ship registry by allowing seagoing vessels to qualify when eligible Indian owners hold legal title to more than half of the vessel’s shares. The Ministry of Ports, Shipping and Waterways issued the notification on 9 November 2026 under Section 15(1) of the Merchant Shipping Act, 2025. It was published in the Gazette of India on 12 November. The change allows vessels with qualifying majority ownership to apply for Indian-flag registration while retaining minority co-owners.

What is the new ownership threshold for Indian-flag vessels?

The notification defines majority interest by who holds legal title to the shares in the vessel itself. One eligible owner can meet the threshold alone, or several eligible owners can meet it through their combined holdings. Under the Merchant Shipping (Registration of Vessels) Rules, 2026, a vessel is divided into 100 shares for registration and fractional shares cannot be registered. Eligible owners must therefore hold at least 51 of the 100 shares.

The previous Merchant Shipping Act, 1958, required ships to be wholly owned by qualifying Indian citizens, companies or co-operative societies. The 2025 Act empowered the Centre to specify the required ownership proportion by notification.

Who can hold a qualifying interest in an Indian vessel?

Eligible owners include Indian citizens, including Non-Resident Indians (NRIs), and Overseas Citizens of India (OCIs). Companies or bodies established by or under a central or state law also qualify if their registered office or principal place of business is in India. The notification extends eligibility to co-operative societies, multi-state co-operative societies and limited liability partnerships registered or deemed registered under the applicable laws, subject to the same India-based office or business requirement.

Where an NRI or OCI holds the majority interest, registration requires an authorised representative. The representative must be either an Indian citizen resident in India or a body corporate incorporated in India with its registered office or principal place of business in the country. The Act separately provides that a vessel wholly owned by an OCI is exempt from compulsory Indian registration.

How do eligible vessels obtain Indian-flag registration?

Owners must apply to the registrar at their intended port of registry and submit documentary proof that the vessel meets the ownership criteria. The registration rules also require an ownership declaration, a survey certificate and evidence that the vessel has been marked as required. Depending on the vessel, the registrar may also require a builder’s certificate or safety construction certificate, an instrument of sale and a deletion certificate from the previous registry. The registrar issues the registration certificate after verifying the documents and entering the vessel in the register.

FAQs

Does a 50:50 ownership split meet the Indian vessel registration threshold?

A 50:50 split falls short. Eligible owners must hold legal title to more than half of the vessel’s shares, equivalent to at least 51 of the 100 shares recorded under the registration rules.

Can several eligible owners combine their vessel shares?

Yes. The notification allows one or more eligible owners to hold the required majority interest collectively.

When was the majority ownership threshold published?

Notification S.O. 6114(E) was dated 9 November 2026 and published in the Gazette of India on 12 November 2026.