Ship registraTion

CYPRUS

Section Title

Conditions of ownership

A ship may only be registered in the Register of Cyprus Ships if:

(1) more than fifty per cent (50%) of the shares of the ship are owned:

by Cypriot citizens, or

by citizens of other Member States (EU/EEA) who in the instance of not being permanent residents of the Republic of Cyprus will have appointed an authorised representative in the Republic of Cyprus, or

(2) the total (100%) of the shares of the ship are owned by one or more corporations, which have been established and operate:

in accordance with the laws of the Republic of Cyprus and have their registered office in the Republic, or

in accordance with the laws of any other Member State (EU/EEA) and have their registered office, central administration or principal place of business within the European Economic Area and which will have either appointed an authorised representative in Cyprus or ensured that the management of the ship is entrusted in full to a Cypriot or a Community ship management company having its place of business in Cyprus, or

outside Cyprus or outside any other Member State (EU/EEA) but controlled by Cypriot citizens or citizens of Member States and have either appointed an authorised representative in Cyprus or ensured that the management of the ship is entrusted in full to a Cypriot or a Community ship management company having its place of business in Cyprus.

The corporation is deemed to be controlled by Cypriots or citizens of any other Member States when more than fifty per cent (50%) of its shares are owned by Cypriots or citizens of any other Member States or when the majority of the Directors of the corporation are Cypriot citizens or citizens of any other Member State.

An authorised representative may be a Cypriot citizen or a citizen of any other Member State, who is resident in Cyprus, or a partnership/corporation/branch established in accordance with the laws of Cyprus, which has its place of business in the Republic of Cyprus.

The common practice of those wishing to register their ships under the Cyprus flag is to incorporate a company in Cyprus, which will either acquire the ship in its name, or bareboat charter the ship.

Provisional Registration

The application is submitted to the Registrar of Cyprus Ships on behalf of the owner, following which all required documentation must be submitted on or before completion / registration of the Vessel. A Provisional Certificate of Cyprus Registry (valid for 6 months) and a provisional radio license are issued. An extension of 3-months is possible if the certificate has not expired.

Permanent Registration

Permanent Registration must occur before the Provisional Certificate expires. An Application is submitted on behalf of the owner to effect this together with the required documents. The ship’s presence in port is not required. The Registrar issues a perrmanent Certificate of Cyprus Registry (valid indefinitely) and notifies relevant authorities.

Parallel (Bareboat Charter) Registration

Parallel-in: Foreign ships can be registered under the Cyprus flag for up to 2 years (renewable), provided the foreign registry and mortgagees consent. The ship flies the Cyprus flag and is subject to Cyprus law.

Parallel-out: Cyprus ships can be registered in a foreign registry for up to 3 years (renewable), with required consents. The ship flies the foreign flag and is subject to that State’s law.

Registration ends if permissions are revoked, the bareboat charter ends, or the period expires. The ship’s flag and legal status revert accordingly.