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Overview

All matters relating to the registration of ships and the related transactions in the Register of Cyprus Ships or in the Special Book of Parallel Registration are governed by the Merchant Shipping (Registration of Ships, Sales and Mortgages) Law of 1963, as amended.

In addition, in connection with the registration of ships, the provisions of the Government Policy on the Registration of Ships under the Cyprus flag, which is established pursuant to the provisions of the aforesaid laws, also apply.

Applications for the registration of ships and for the related transactions in the Register of Cyprus Ships or in the Special Book of Parallel Registration must be submitted to the Registrar of Cyprus Ships.

Under the Advocates Laws of Cyprus only lawyers, registered as practising advocates in Cyprus, are entitled to draft the necessary documents for the incorporation of Cyprus companies as well as to carry out all registry transactions.

Consequently, the first step to be taken by persons interested in registering a ship under the Cyprus flag is to engage the services of a local registered advocate. For further information visit the Cyprus Bar Association website.

The registration of ships and the related transactions are effected by the Registrar of Cyprus Ships (the Registrar), who is stationed at the Head Office of the Shipping Deputy Ministry in Limassol. However, the provisional registration of ships and other transactions (other than the permanent and the bareboat charter registration) may be effected abroad by a consular officer of the Republic of Cyprus (consular officer) stationed at any one of the Diplomatic or Consular Missions of the Republic of Cyprus upon instructions issued by the Registrar. In such cases, the transactions are recorded by the Registrar in the Register as from the date and time they have been effected by the consular officer.

The office addresses, contact details and working hours of the Diplomatic and Consular Missions and of the Honorary Consular Officers of the Republic of Cyprus can be found on the web site of the Ministry of Foreign Affairs.

The legislation requires the payment of the prescribed fees and taxes prior to the registration of a ship or other transaction in the Register of Cyprus Ships or in the Special Book of Parallel Registration.


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.


Government Policy on the Registration of Ships under the Cyprus flag

The Government Policy on the Registration of Ships under the Cyprus flag states the additional requirements or conditions for the registration of ships which are deemed necessary for the achievement of safe, secure and efficient shipping on clean oceans and for the purpose of safeguarding the interests of the Cyprus ships and of their owners, bareboat charters, managers and operators.

The Registrar will not consider applications for the registration in the Register of Cyprus Ships or in the Special Book of Parallel Registration of ships which:
  1. at the time of the application for their registration, are banned on port State control grounds by a State member of any one of the Memoranda of Understanding on port State control, from entering the ports of the States party to that memorandum or which have been banned by a State from entering its ports;
  2. have been detained on port State control grounds on three (3) or more occasions during the two (2) years period prior to the date of application for registration by States of the Paris or the Tokyo or the Mediterranean Memoranda of Understanding on port State control or by the United States Coast Guard; and
  3. have been constructed for exclusive use on inland navigation or which are to be used exclusively on inland navigation (e.g. in internal waters, rivers, inland waterways, canals, natural or artificial lakes, water reservoirs or dams).

The age limits and conditions on ship registration can be found in the Extract of the Government Policy.

The entry inspection and the additional inspections are carried out by the Surveyors of the Shipping Deputy Ministry at the expense of the registered owner or registered bareboat charterer, as the case may be. The entry inspection of a ship should be carried out no later than three (3) months from the date of the provisional, or the parallel-in registration, or within one (1) month from the date of permanent registration if effected directly.

In relation to fishing vessels, the Registrar will not consider applications for their registration unless they are accompanied by an official communication from the Director of the Department of Fisheries and Marine Research of the Ministry of Agriculture, Rural Development and Environment, informing the Registrar that the registration of the fishing vessel in question is allowed.


Language and submission of supporting documentation

The legislation provides that all documents which refer to Cyprus ships (including documents required for their registration) are admissible provided that they are drawn up in an official language of the Republic of Cyprus or in a language comprehensible to the competent officers of the Shipping Deputy Ministry. In practice, most of the documents are admissible in the English language. Such provision makes the registration process of ships faster and saves on translation expenses.

As a rule, the supporting documentation relating to the registration of ships and to other transactions in the Register of Cyprus Ships or in the Special Book of Parallel Registration should be submitted to the Registrar. However, some of the required documentation (except documentation for the permanent and parallel registration) may be submitted abroad to anyone of the Diplomatic and Consular Missions of Cyprus. In such cases, the Registrar issues instructions to the relevant consular officers to accept said documentation and to proceed with the transaction required.