Ship Owning Companies
The fees payable by Cypriot registered vessels are on the low side and may be favorably compared with those of other flags. Ship owners are initially attracted to the Cyprus Register by the inexpensive registration and annual fees and the excellent services offered. Other important incentives are:
|
|
|
|
A non-resident may
register a ship under the Cypriot flag by forming a company with the
permission of the Central Bank and by transferring the ownership of the
ship to the Cypriot company. The procedure for registering a shipping
company may generally be completed in a matter of days through an
appropriate professional. Shipping companies owned by non-residents and
deriving their income from sources outside Cyprus are exempt from
exchange controls. Government policy provides for the registration of
ships which do not exceed 17 years of age. However, vessels of any type
and tonnage between 18 and 23 years of age may also be registered
subject to certain conditions. The provisional registration of a ship under the Cypriot flag may be effected in any country where Cyprus has a diplomatic mission or a consular post. The permanent registration of a provisionally registered vessel must be completed within nine months, including a three month extension. For this purpose the vessel must be surveyed and measured by any one of the classification societies recognized by the Cypriot Government. Cyprus recognizes all the major classification societies. In accordance with the law on parallel registration, ships bareboat chartered to Cypriot companies may be registered under the flag of the Republic for the period of the charter provided that the legislation of the foreign flag state permits it and the owners and the mortgages give their consent. Cypriot registered vessels may be registered in parallel in a foreign registry under the same conditions which must be satisfied for the parallel registration of foreign ships in Cyprus. All mortgages on Cypriot
ships, except those of vessels registered in parallel, have to be
registered in the Cyprus Register of Ships. Registered mortgages are
fully protected and no transaction affecting the registry status of a
ship is effected without the written consent of the mortgages.
Furthermore, no certificate of deletion from the Cyprus Register is
issued unless all registered encumbrances have been discharged. |
|
|
|
| Firm
Profile | Offshore
Companies | Areas of
Practices | Double Tax
Treaties | Inquiries
| |
The
island's development into an international maritime center began in 1963
when the Government offered the first incentives aimed at the
encouragement of ship ownership and the registration of vessels under
the Cyprus flag. In the early 80' s the Cypriot merchant fleet ranked
32nd on the list of maritime nations. Today it ranks 6th with over 2.600
ships exceeding 26 million gross tonnage. This achievement is due to the
cost-competitiveness of the Cypriot Ship Registry, the island's
well-developed maritime infrastructure as well as the high standard of
services offered to international shipping.
