Ship registration is the process by which a ship is documented and given the nationality of the country to which the ship has been documented. The nationality allows a ship to travel internationally as it is proof of ownership of the vessel.
International law requires that every merchant ship be registered in a country, called its flag state. A ship is bound to the law of its flag state. It is usual to say that the ship sails under the flag of the country of registration.
A ship's flag state exercises regulatory control over the vessel and is required to inspect it regularly, certify the ship's equipment and crew, and issue safety and pollution prevention documents. The organization which actually registers the ship is known as its registry. Registries may be governmental or private agencies. In some cases, such as the United States' Alternative Compliance Program, the registry can assign a third party to administer inspections.
A registry that is open only to ships of its own nation is known as a traditional or national registry. Registries that are open to foreign-owned ships are known as open registries, and some of these are classified as flags of convenience.
Ship registration has been done since business on the seas has been important. Originally meant to control ships carrying cargo in European seaborne countries, it was used to make sure ships were being built in the local country, with crews predominantly of the local country. Since then, ship registration has been used to document ships for ownership. Documentation provides definite evidence of nationality for international purposes and provides financing opportunities with the availability of preferred mortgages on documented vessels.
Vessels which travel internationally or cross international borders are required to be registered. Registration is not necessary for vessels that travel only in local waters, though some jurisdictions require those vessels to be registered on the national registry. The country of registration is a ship's flag state and determines its nationality as well as which country's laws govern its operation and the behavior of its crew.
The types of vessels that can be registered at a particular registry is dependent on the rules of the registry. For example, the Liberian Registry registers seagoing vessels of more than 500 net tons that conduct foreign trade. Vessels over the age of 20 require a waiver as well as the vessel's classification society being willing to issue statutory certificates to the vessel. Vessels 15 year or older must have a Status Report of the vessel's Special Survey to be reviewed by Marine Safety. Registries charge a registration fee and annual fees.