The short answer is no, not directly. The Myanmar Registration of Ships Act, as amended on 5 May 2025, limits ownership of a Myanmar ship to Myanmar citizens and to companies established in Myanmar that meet a set of incorporation, management, and control requirements. A foreign company cannot own a Myanmar ship, and a Myanmar company under foreign control does not qualify either.
That is a change worth registering. Before 2025 the Act did not state an ownership qualification in these terms, and a good deal of market understanding still reflects the earlier position.
What the qualification requires
A company seeking to own a Myanmar ship must be incorporated in Myanmar, have its principal office in Myanmar, and be managed in Myanmar. Beyond that, both its shareholding, including voting shares, and its board must be predominantly Myanmar. The Ministry may set the applicable percentages by notification.
The provision does not stop at the share register. It requires that the qualifying Myanmar shareholding be held independent of influence by any person other than Myanmar citizens. That wording directs attention to who actually controls the company, and it is aimed at arrangements in which local shareholding is nominal. Structures that would satisfy a percentage test on paper may not satisfy this one.
The declaration made on registration reinforces the point. The owner must state that no person other than those declared holds any legal or beneficial interest in the ship, and the registrar may require proof of ownership. A false declaration is an offense under the Act, and where it is made by the owner, the ship’s certificate becomes void.
The position if a foreign interest is acquired later
The Act also addresses what happens after registration. Where a person who is not a citizen acquires the whole, or any part, share, or interest in a registered Myanmar ship, the certificate of registry must be surrendered to the registering officer within a short period fixed by the Act, running from the transfer or from the ship’s next arrival in Myanmar. Failure to do so is an offense.
The practical consequence is that a foreign investor cannot acquire an interest in a Myanmar ship and leave the registration undisturbed. The transfer itself triggers a surrender obligation. Any transaction involving a Myanmar-flagged vessel therefore needs the flag consequences worked out before completion rather than after.
What remains open to foreign participation
The Act closes ownership, but it does not close the Myanmar market to foreign capital or foreign operators. Three routes remain relevant, each with its own conditions:
- Temporary registration. The Act allows temporary registration of ships bareboat chartered by an authorized organization, or chartered for a similar purpose in accordance with international practice, subject to the approval of the authorities. This is the principal mechanism by which chartered tonnage is brought onto the flag.
- Security over a Myanmar ship. The Act provides for mortgages of a Myanmar ship or a share in one, recorded on the register in order of production. Foreign lenders financing Myanmar tonnage should understand how priority is established and what restricts the owner’s ability to deal with the ship.
- Operating without changing flag. Not every commercial objective requires the Myanmar flag. Where it does not, the question becomes one of the regulatory requirements applying to foreign-flagged vessels operating in or calling at Myanmar, which sit outside this Act.
Which of these is appropriate depends on what the investor is trying to achieve, and the choice is usually made early in a transaction, when it is still inexpensive to change.
Why this is being missed
Two reasons. The 2025 amendment is recent and has not been widely absorbed. And the Act leaves the operative percentages, along with several procedural matters, to be prescribed by the Ministry, so the statute alone does not give the full position. Advice based only on the text of the Act, or on the pre-2025 position, is liable to be wrong on both counts.
Owners, investors, and lenders with an existing interest in Myanmar tonnage should review it against the current requirements. Those contemplating a new interest should settle the ownership question before committing to a structure, since it determines what is available to them.
Myanmar Flag Structuring Briefing
ILPC prepares Executive Briefings for shipowners, investors, and lenders on ownership and registration of ships under the Myanmar flag. A briefing addresses the ownership qualification and how it is assessed in practice, the position of an existing or proposed structure against it, temporary registration for chartered tonnage, security and priority for financiers, the consequences of a transfer involving a foreign party, and the notifications issued under the Act.
Briefings are prepared for the client’s own structure and transaction, and delivered in person or in writing.
Request a briefing | info@ilpcmm.com
Disclaimer
This publication is provided for general information only. It does not constitute legal advice and should not be relied upon as such. Specific advice should be sought in relation to any particular matter.
