(1) Any of the following commercial Nepali ships shall be registered in the ship registration book of the Nepal Shipping Office in accordance with this Act:-
(a) At least 51 percent of the shares of the ship are owned by Nepali citizens or organized organizations established according to prevailing Nepalese laws,
(b) The main place of business of the organized organization as per Clause (a) is within Nepal (c) The manager appointed for the purpose of operation of the organized organization of sailing ships and the majority of the members of the board of directors formed are Nepali citizens,
(d) The owners or co-owners of the ships have approved and applied to register their ships in the ship registration book of the Nepal Shipping Office, and
(e) If the previous foreign registration of the vessel has been cancelled.
(2) The customs and procedures for registering ships shall be as prescribed.
(3) For the purpose of registering ships, the Government of Nepal shall publish a notice in the Nepal Gazette and establish the Nepal Shipping Office and appoint a registrar.