CONDITIONS OF OWNERSHIP

A vessel may be registered in Cyprus if:

a) More than fifty percent (50%) of the shares of the ship are owned

• by Cypriot citizens (natural or legal) or
• by citizens of other Member States’ who in the instance of not being permanent residents of the Republic will have appointed an authorized representative in the Republic of Cyprus, or

b) 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 and have their registered office, central administration or principal place of business within the European Economic Area and which will have either appointed an authorized representative in Cyprus or the management of the ship is entrusted in full to a Cypriot or a Community shipmanagement company in Cyprus, or
• outside Cyprus or any other Member State but controlled by Cypriot citizens or citizens of Member States and have either appointed an authorized representative in Cyprus or the management of the ship is entrusted in full to a Cypriot or a Community shipmanagement company in Cyprus.  The company is deemed to be controlled by Cypriots or citizens of any other Member States when more than fifty percent of the shares belongs to Cypriots or citizens of any other Member States or when the majority or the Directors of the corporation are Cypriots or citizens of any other Member State.

An authorized representative may be a Cypriot citizen or a citizen or any other Member State, who is resident in the Republic, or a partnership / corporation / branch which has its place of business in the Republic and which employs permanent staff in the Republic.

In view of the above requirements, all non-European owners who wish to register their ships under the Cyprus flag may incorporate a company in Cyprus, which will either acquire the ship in its name, or bareboat charter the ship.

Practice and custom have created a special type of Cyprus ship owning company (hereinafter referred to as “the company”), which is limited by shares and has a nominal capital, usually CY£1,000 divided into 1,000 shares of CY£1.00 each.

In accordance with the Advocates Laws of Cyprus, only lawyers are entitled to draft the necessary documents for the incorporation of Cypriot companies.  Therefore, the first step to be taken by persons interested in registering a vessel under the Cyprus flag is to engage the services of a local lawyer.

The main types of vessel registration in Cyprus are Provisional, Permanent and Parallel registration.