Indian-Owned Ships Get Clearer Path to Registration Under New Rules.

The Centre has set a majority ownership threshold, allowing eligible Indian individuals and entities to register vessels under the Merchant Shipping Act, 2025.   The Centre has amended vessel registration regulations under the Merchant Shipping Act, 2025, allowing ships majority-owned by eligible Indian citizens and entities to qualify for registration as Indian vessels. According to a recent Gazette notification, majority ownership is defined as legal title to more than 50% of the shares into which a vessel's property is divided. However, meeting this ownership requirement does not automatically grant registration or Indian flag status. Owners must submit a formal application to the authorities. Under the earlier Merchant Shipping Act, 1958, vessels had to be wholly owned by eligible Indian citizens, companies or cooperative societies to qualify for registration. The revised framework expands eligibility to include Indian citizens, Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), companies, cooperative societies, statutory bodies and limited liability partnerships (LLPs). The move is expected to simplify ship ownership and strengthen India's maritime sector.