The concept of “Genuine Link” is a highly controversial, political, economic and legal issue. There are various views concerning the concept of “Genuine Link.” They may be divided into two big groups – for and against (pro and con). The discussion has created difference of literature and opinion but has left this issue still unsettled. Shipowners are operating in highly competitive markets and as a consequence, the factors determining choice of flag for their vessels are basically economic factors, which usually form an integral part of their corporate and financial policy. There are different factors governing the choice of flag by the shipowner. However, this should not be done at the cost of safety... The requirement of a genuine link between a State and a ship registered therein has caused problems greatly in the study of International Maritime Law. However, it should be noted that even inside of these groups does not exist compromise regarding of the meaning of the genuine link.