CONDITIONS OF OWNERSHIP UNDER THE CYPRIOT LAW
The history of the Sea and Shipping in Cyprus traces back hundreds of years. Its geographical position at the crossroads of Europe, Asia and Africa as well as its proximity to the Suez canal has historically favored merchant shipping as an important industry for the Aphrodite’s island.
Admiralty and Shipping law
PAPANTONIOU & PAPANTONIOU L.L.C. is a leading Cypriot law firm in the field of Admiralty and shipping law. The firm offers a range of services to ship-owners, freight forwarders, insurers, charterers and has experience on resolving legal disputes that arise in the field. As a member of the European Law Firm, Papantoniou & Papantoniou LLC is on the advantageous position to provide legal services in the shipping law field around Europe.
Moreover, due to the law firm’s long-term and successful cooperation with Greek entrepreneurs, our Law Firm specializes in providing legal services to Greek businesses , whose purpose is to expand their operations globally.
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.
Our Services and assistance is sought on all types of maritime matters, including:
- Formation of Shipping Companies
- Ship’s registration
- Purchase and sale of vessels
- Charter agreements
- Maritime commerce
- choice of flag and registration
- All related company law and tax matters
- Disputes under shipbuilding and repairing contracts
Litigation and arbitration involving claims for lost, damaged, delayed or hazardous cargo; claims arising out of collisions, wrongful death and personal injury; contract disputes; claims against vessels and other property; and complex marine insurance claims.
For any further information and/or clarifications please contact us at email@example.com or contact number +35722817711.
The present article is intended for educational use only and does not constitute legal advise in any way. Each case comes with its own particular circumstances and characteristics and needs different treatment and approach. For this reason we advice you to seek and obtain specific legal advice applicable to your own circumstances.
by Thanos Christou, PAPANTONIOU & PAPANTONIOU L.L.C.