OFFICIAL GUIDE TO SHIP & YACHT REGISTRIES

Cyprus

Shipowner Eligibility 

A vessel may only be registered in the Register of Cyprus Ships if:
More than fifty percent (50%) of the shares of the ship are owned:
By Cypriot citizens or
By citizens of other Member States who in the instance of not being permanent residents of the Republic will have appointed an authorised representative in the Republic of Cyprus or
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 authorised representative in Cyprus or 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 but controlled by Cypriot citizens or citizens of Member States and have either appointed an authorised representative in Cyprus or the management of the ship is entrusted in full to a Cypriot or a Community shipmanagement 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 percent 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 the Republic, or a partnership / corporation / branch established in accordance with the laws of Cyprus, 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 shipowning company (hereinafter referred to as ‘the company'), which is limited by shares and has a nominal capital, usually EUR 1,000 divided into 1.000 shares of EUR 1 each.
In accordance with the Advocates Laws of Cyprus, only lawyers registered as practising advocates in Cyprus, are entitled to draft the necessary documents for the incorporation of Cypriot companies as well as to carry out all registry transactions. 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 (For further information visit the Cyprus Bar Association website: www.cyprusbarassociation.org).

Member State means a Member State of the European Union or other contracting party to the European Economic Area Agreement.

About the Flag

Cyprus is situated in the eastern Mediterranean, lying at the hub of 3 continents. Cyprus is the third largest island in the Mediterranean after Sicily and Sardinia. The island’s time zone is 7 hours ahead of New York and 7 hours behind Tokyo.

Cyprus’ estimated population is 870,000 (population census 2008). Greek and Turkish are the official languages of the Republic but English is widely spoken and understood, and is regularly used in commerce and government.

The structure of government is similar to that in other western democracies where human rights, political pluralism and private property are safeguarded.

Since the 1st May 2004, Cyprus has been a European Union Member State.

Cyprus has an open, free market economy driven by thriving tourist and service sectors and an export-oriented industry. Cyprus is classified by the World Bank among the high-income economies. Its currency is the Euro

Company Formation

Legal Status
The first step to be taken by all non-European shipowners who wish to register a vessel under the Cyprus flag is to form a Cyprus Shipping Company (hereinafter referred to as ‘the company') which will acquire the vessel in its name. The company is registered as a private company with limited liability (limited by shares) under the provisions of the Cyprus Companies Law, Chapter 113 of the Statute Laws of Cyprus, as amended.

For the incorporation of the company, the filing of the memorandum and articles of association in Greek with the Registrar of Companies is required. The incorporation of the company is evidenced by the issue of a certificate of incorporation by the Registrar of Companies.
The time required for incorporation is about 3 - 5 days from the filing of the incorporation documents. The present legislation contains provisions which facilitate the acceleration of the various procedures in urgent cases.

Memorandum and Articles of Association
The memorandum must contain the objects of the company, set out as widely as possible. These are the usual ones of a shipping company e.g. to own and operate vessels, borrow money, mortgage its vessel, etc.

The articles usually adopt Table A of the Companies Law with a number of changes or additions as deemed necessary. The most usual departures from Table A are: pre-emption of the rights in case of transfer of shares; full borrowing powers of directors; lower quorum for meetings; simplified sealing provisions, appointment of alternate directors, etc.

Name of the Company
The name of the company must end with the word ‘limited' or "Ltd". Prior approval of the name by the Registrar of Companies is required. Very general or deceptive names are not accepted nor are names likely to lead to confusion with existing ones. It usually takes 2 days to obtain a name approval but the procedure may be expedited upon request.

Registered Office
This, by law, must be in Cyprus. It is usually situated at the offices of either the lawyers who have incorporated the company in Cyprus or the accountants who act for the company in the island, unless the company has a more substantial presence in the island and operates from fully fledged offices or has a sister management company or affiliate here. The registers and minute-books are kept with the secretary of the company.

Share Capital
The share capital of the company may either be nominal (e.g. €100) or the actual amount to be deposited by the promoters for the pursuit of the venture. It may be paid up in full or by calls, in cash or for consideration other than cash and the shares may be allotted a par value. Any class of shares e.g. ordinary or preference, and with different voting and dividend rights, are acceptable. All shares must be nominative; bearer shares are unacceptable.

Shareholders
General
One shareholder is required for the incorporation and continued existence of a Cyprus private company. The nationality of the shareholders is immaterial. Under Cypriot law all shareholders of a shipping company may be foreigners residing outside the island.The transfer of shares from one foreigner to another is allowed.

Security of Beneficial Shareholders
The trust relationship is recognised under Cypriot law both by statute and in equity. The principles of equity which apply under English law are applicable in Cyprus as provided by the Courts of Justice Law, 1960. The security documentation of the beneficial owner (according to the practice followed by law firms) comprise the following:
The trust deed
The original share certificates which are issued in the names of the nominee shareholders;
Instruments of transfer of shares executed in bank
Directors' resolutions approving the transfer of shares (where nominee directors are appointed
Undated letters of resignation of the nominee directors
Irrevocable dividend mandates for payment of dividends to the beneficial owners or to an account designated by them.

Meetings
General meetings may be held abroad and, as a rule, written resolutions signed by all shareholders will suffice in lieu of a meeting. Annual general meetings must be held every year, the first to be held within 18 months from incorporation.

Directors
One or more directors may be appointed. The nationality of directors is totally immaterial and does not affect the status of the company in any way. Thus, there is no obligation to have local directors, unless it is considered advisable to establish local management for tax or other reasons. Share qualifications are not required.

The appointment and removal of directors are in the hands of the shareholders, and special rights may be given for this purpose to a specific class of shares. Board meetings may be held in any country of the world. Directors' resolutions may be taken in one of two ways:
At a board meeting duly convened and held or
Without a meeting provided that the resolution is signed by all the directors.

The names of the directors should be disclosed to the Registrar of Companies by separate returns which are open to public inspection. Their names and nationalities (for foreigners) must by law appear on the letterheads but, in practice, this is not observed for shipping companies.

Secretary
A company secretary must be appointed by the directors and is removable by them. The nationality of the secretary is totally immaterial and does not affect the status of the company in any way. However, it is advisable that the secretary be a company or a person resident at the place where the directors reside and that an assistant secretary be appointed in Cyprus to attend to company annual formalities in the island. This will ensure that all company annual returns are promptly signed and filed with the Registrar of Companies by the secretary and recorded. A director (but not a sole director), unless the company has one shareholder, may also act as the company's secretary.

Returns
Annual returns must also be filed. The names of the registered shareholders must appear in the annual returns filed with the Registrar of Companies. Any charges against the company must be filed and registered. Once filed the returns are open to public inspection.

Procedure for Incorporation
A limited liability company can be incorporated in one of the following ways:
By the actual shareholders appearing as subscribers to the memorandum and articles of association and signing the said documents;
By Cypriot nominees (usually members of the law firm who are acting for the formation of the company) subscribing to the memorandum and articles of association and later transferring their subscription shares to the actual shareholders by instruments of transfer.

Required Particulars
In order to proceed with the formation of a Cyprus shipping company, law firms in Cyprus require the following particulars:
Desired company name (more than one name should be given if time is of the essence);
Amount of authorised share capital;
Whether shareholders will subscribe to the memorandum and articles of association themselves or through Cypriot nominees;
Whether shares will be held in trust by Cypriot nominees;
Names, address, nationality and occupation of beneficial shareholders;
Name, address, nationality and occupation of directors;
Name and address of secretary;
Registered office

Auditors and Accounts
Companies required to submit audited accounts must appoint approved auditors. Auditors are appointed by the annual general meeting (or by the directors until the convening of such a meeting) and are thereby removable. Powers and duties of auditors are similar to those under English law prior to 1967.
The books may be kept abroad and denominated in any currency.

Costs
The Companies (Fees and Dues Payable) Regulations provide that the fees payable on incorporation are the Registration Fees, which are a fixed amount of EUR 102,52 plus 0,6% on the nominal capital. There are no annual official fees payable in order to keep the company in good standing and operative, but there is a stamp duty of EUR 17,09 for filing the annual returns. Charges are levied for the registration of charges against the shipowning company, with the Registrar of Companies.

Commencement of Trading
Upon the issue of the certificate of incorporation by the Registrar of Companies, the company may commence its activities forthwith and register a vessel in its name.

Taxation

Tonnage Tax of Cyprus Ships
On 24th March 2010 the European Commission approved the new Tonnage Tax System for Cyprus merchant shipping. The new Tonnage Tax System (Law 44(I)/2010) is applicable as from the fiscal year 2010 (for more information see Chapter 7).
Under the new Tonnage Tax System, qualifying owners of Cyprus ships are not liable to pay tax under the provisions of the Income Tax Law in force, but are subject to an annual tax referred to as tonnage tax, which is calculated on the basis of the net tonnage of the ships they own as prescribed in the table below.
Net Tonnage
0 - 1.000
1.001 - 10.000
10.001 - 25.000
25.001 - 40.000
> 40.000
€ 36,50
per 100 NT
€ 31,03
per 100 NT
€ 20,08
per 100 NT
€ 12,78
per 100 NT
€ 7,30
per 100 NT
Sample calculation of the annual tonnage tax for a 19.538 net tonnage vessel:
1.000 NT : 1.000/100 = 10 x € 36,50 = € 365,00
9.000 NT : 9.000/100 = 90 x € 31,03 = € 2.792,70
9.500 NT : 9.500/100 = 95 x € 20,08 = € 1.907,60
38 NT : 38/100 = 0,38 x € 20,08 = € 7,63
_________
Annual tonnage tax due = € 5.072,93
Eligibility Requirements
Eligible for the Tonnage Tax System is an Owner of a Cyprus ship, that is a qualifying ship engaged in a qualifying shipping activity.
Qualifying ship is any seagoing vessel certificated under the applicable international or national rules and regulations and registered in the Cyprus Register.
The new tonnage tax system specifically excludes certain types of ships such as:
Fishing and fish factory vessels;
Vessels used primarily for sport or recreation;
Inland Waterway navigation vessels;
Harbour, estuary and river ferries and tug boats;
Fixed Offshore Installations (not used for maritime transport);
Non self-propelled Floating Cranes;
Floating Hotels, Restaurants, Casinos.

Qualifying shipping activity:
Any commercial activity that constitutes maritime transport is considered a qualifying shipping activity. The definition of maritime transport includes the traditional carriage of goods and passengers, by sea, outside the territorial waters of Cyprus, including Towage & Dredging activities (under Conditions) and Cable-Laying activities.
The definition of maritime transport includes also ancillary activities to maritime transport such as all hotel, catering, entertainment and retailing activities on board a qualifying ship, as well as the loading and unloading of cargo, the operation of ticketing facilities and passenger terminals.
Owners who do not qualify shall be liable to pay tax in accordance with the provisions of the Income Tax Laws in force.

Exemption from Income Tax of a Qualifying Owner
Notwithstanding the provisions of the Income Tax Laws (Law 118 (I) of 2002 as amended) or any other Law in force in the Republic, no tax shall be charged, levied or collected upon the:
Income derived from the operation of a qualifying ship in a qualifying shipping activity;
Profit dividends paid to shareholders directly or indirectly
from the operation of a qualifying ship, or
from the sale of a qualifying ship;
Bank Interest earned on working capital or shipping revenue (provided said working capital or shipping revenue is used to pay expenses for the financing and/or operation and/or maintenance of ship);
Income or Profit from the sale of a qualifying ship or from the sale of any shares in a qualifying owner entity that is the owner of a qualifying ship.

Terms of Payment
The tonnage tax is payable on 31st March each year. In case of deletion of a ship before this date the tonnage tax is payable on the date of deletion.

Late payment results in an additional annual fee of ten percent (10%) on the chargeable and leviable amount of tonnage tax for every year of the delay or part thereof, until the final discharge of the chargeable and leviable tax.

In case of deletion of the ship from the Cyprus Register before the expiration of the year for which tonnage tax has been paid for, the amount paid in excess shall not be reimbursed to the owner.

Reduction of Tonnage Tax
Reduction of the tonnage tax is granted in the cases listed below.

Laid-Up Ships
If the ship is laid up for a period of at least 3 consecutive months the tonnage tax payable is reduced by 75% for the period during which the vessel is laid-up, provided that the Department of Merchant Shipping is duly notified not later than 3 months from the commencement of the lay-up period.

Inoperative Ships
If the ship is rendered inoperative for a period of at least three months due to its judicial arrest, or by act of piracy, or armed robbery, or by force majeure, then the tonnage tax payable is reduced by 75 % for the period during which the vessel is inoperative.

Registration and Documentation

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

Administrative Procedures
Cypriot merchant shipping legislation allows for the provisional registration of a vessel and most owners usually opt to have their ship provisionally registered first. This will allow them time (up to 9 months, including a 3 month extension) during which they will be able to complete the administrative formalities for permanent registration.

The application for registration of a ship under the Cyprus flag must be made by a local lawyer to the Minister of Communications and Works through the Registrar of Cyprus Ships. In practice, the Registrar will also accept the submission of applications for registration of ships on behalf of companies under formation, so that the incorporation of the company and registration of the ship can progress simultaneously. However, the company must be duly incorporated prior to the registration of the vessel.
A ship may be provisionally registered under the Cyprus flag either in Limassol, by the Registrar of Cyprus Ships or by an officer at any diplomatic mission or consular post of the Republic of Cyprus abroad (hereinafter referred to as "consular officer") who will act on instructions issued by the Registrar of Cyprus Ships.

At the time of her provisional registration under the Cyprus flag a ship must be at a port so that she can be surveyed and certified on behalf of the Cypriot Government. The presence of the ship at the port or place where the provisional registration will be effected is not necessary.

Application for Provisional Registration
In order to enable the Registrar of Cyprus Ships to initiate the procedure for the provisional registration of a ship, the following information is required:
Name of the vessel and her flag at the time of the application;
Name of the person applying for the registration of the vessel;
Name of the vessel under which she will be registered;
Particulars of the vessel (type, year of build, date keel of the vessel is laid, gross and net tonnage);
Name of the classification society with which the ship is entered. If the owners of the vessel contemplate a change of the classification society on acquiring the vessel this should also be stated;
Declaration of Particulars for ISM Code (Form ISM01/Revision03);
Intended trading area of the vessel;
Place where the vessel will be at the time of her provisional registration, if known. This must be communicated to the Registrar of Cyprus Ships prior to the provisional registration;
The consular office where the owners wish to effect the provisional registration of the vessel (in the case of the provisional registration of the vessel, the registration will not be carried out in Limassol);
Name and address of the shareholders and directors of the company in whose ownership the vessel will be registered.

Recognized Classification Societies
It should be noted that the vessel must be classed with one of the classification societies that the Cypriot government recognises: ABS, LRS, DNV, BV, RINA, NKK, KRS, CCS, RS, PRS.

Recognised Radio Traffic Accounting Authorities
It should be noted that the vessel must be covered by one of the radio traffic accounting authorities which the Cypriot Government recognises. All maritime radiocommunications accounts must be paid by an accounting authority. Payments made directly through land earth stations or international service providers are not allowed.

Point of Service Activation (P.S.A.)
For the purpose of activation/deactivation for maritime mobile earth stations, vessels should nominate their preferred PSA that the Cypriot Government recognizes.

Supporting Documentation/Information
The following documents/information must be forwarded to the Registrar of Cyprus Ships together with the application for the registration of the vessel or must reach the Registrar on a later date soon thereafter but in any event prior to the dispatch of instructions for the provisional registration of the vessel under the Cyprus flag:

All documents should be dully executed where applicable.
Memorandum and Articles of Association of the Cypriot Company*;
Certificates of Incorporation, Directors and Secretary, Shareholders and Registered Office of the Cypriot company*;
In the case of companies established in the EU or EEA or established outside the EU OR EEA but controlled by citizens of the EU or EEA, a Notarial Certificate issued by a Notary Public or the competent authority of the relevant State can be submitted instead of the documents mentioned above.*
Resolutions of the Directors of the Company for the purchase of the vessel and its registration in the Cyprus Registry;
Power of attorney authorising the person who will sign all the necessary documents on behalf and on account of the Company;
Bill of Sale/ Builder's Certificate;
Certificate of Deletion of the vessel/ Certificate of Ownership and freedom of encumbrances from the previous registry;
Confirmation of Radio Traffic Accounting Authority (where applicable);
Confirmation of Vessel´s Classification Society (where applicable);
Form ISPS C1 (Circular 18/2003)(where the International Ship and Port Facility Security Code is applicable);
Continuous Synopsis Record (C.S.R.) (where applicable). The deletion CSR must be forwarded within three(3) months in the case of ships coming from a foreign registry;
Declaration of ownership (M.S.3 or M.S.2);
Form of Appointment of Authorised Representative **;
Registration of a Mobile Maritime Radio Station (M.S.34) and copy of Shore Based Maintenance Agreement;
Registration Form of SAR Particulars (M.S.45) (where applicable);
ISM forms (Circular 27/2006) (where applicable) ;
ISM forms (Circular 27/2006) where applicable (where applicable);
For vessels whose keel was laid before 1st October 1994, confirmation from the classification society stating that the ship is free from any quantity of HALON;
In the case of Parallel Registration in a foreign register, a Certificate of Parallel Registration from the foreign registry;
Customs Clearance Certificate/ Confirmation from the Customs Department (where applicable);
In the case of pleasure craft under 24 metres:
Declaration of Conformity in accordance with Directive 94/25/EC, as amended;
EC Type Examination Certificate from a Notifying Body;
Owner's Manual (Craft);
Declaration of Conformity for the engine in accordance with Directive 94/25/EC, as amended.
* In the case of an individual, this is replaced with the Identity Card or Passport.
** In the case of a corporation established in the European Union (EU) or the European Economic Area (EEA) or outside the EU or EEA but controlled by citizens of the EU or EEA.

If the vessel falls within the ambit of the Government Policy for the Registration of vessels under the Cyprus flag then the additional requirements and/or conditions imposed therein must be satisfied prior to her registration.
If the provisional registration will take place at a diplomatic mission or consular post of the Republic of Cyprus abroad, some of the required documents can be deposited there, upon the Registrar's written instructions.

Upon receipt of the required documents, the Registrar of Cyprus Ships, or the consular officer of the Republic as the case may be, will then proceed with the provisional registration of the vessel.

Completion of Provisional Registration
Provided that the relevant fees have been paid and all the necessary documentation has been deposited either with the Registrar of Cyprus Ships or with any diplomatic mission or consular officer of the Republic, the Registrar or the consular officer who has been instructed to carry out the ship's provisional registration will proceed to:
Issue a Provisional Certificate of the Cyprus Registry (form MS.5), which is valid for 6 months from the date of issue;

Issue a provisional radio licence;

Advise the vessel's classification society that it may proceed with the survey and certification of the vessel on behalf of the Cypriot Government.

The shipowner must ensure that the ship does not leave the port where she is lying unless and until she has been duly surveyed and certificated by her classification society on behalf of the Cypriot Government.

Extension of Provisional Registration
A three (3) month extension of the ship's provisional registration may be obtained, provided the provisional certificate of Cyprus Registry has not expired and the appropriate extension fees have been paid. For this purpose an application has to be made by the local lawyer acting on behalf of the registered owner to the Minister of Communications and Works through the Registrar of Cyprus Ships, requesting the extension of the ship's provisional registration.

In the said application, the consular officer of the Republic to whom the Provisional Certificate of Cyprus Registry will be presented for extension should be stated. The Registrar of Cyprus Ships will consider the application and will proceed and instruct the consular officer indicated above to effect the necessary endorsement of the Provisional Certificate of the Cyprus Registry.

Permanent Registration
The permanent registration of a provisionally registered vessel must be effected within 6 months (or 9 months if the 3 month extension has been obtained) from the date on which she was provisionally registered.

Application and Documentation
The following documents must be submitted to the Registrar of Cyprus Ships in addition to the documents required for the provisional registration:
Certificate of Deletion (if not submitted during the provisional registration);
Certificate of Survey (form M.S.1) and Tonnage Certificate (form M.S.12);
Ship's Carving and Marking Note (M.S.32);
The International Certificates from a recognized Classification Society in accordance with the relevant international maritime conventions in force(where applicable);
Safety Management Certificate (SMC) (where applicable);
Application for permanent registration in accordance with Section 9 of Law 45/63 as amended.
If the vessel falls within the ambit of the Government Policy for the Registration of vessels under the Cyprus flag then the applicable requirements or conditions under her registration has been approved should be complied with.
Measurement of the Ship's Tonnages and Ship's Carving and Marking
The Certificate of Survey and the Cyprus Tonnage Certificate or International Tonnage Certificate (1969) may be prepared by any one of the classification societies recognised by the Cypriot Government or by the Department of Merchant Shipping.

After receipt of the aforementioned forms, the Registrar of Cyprus Ships allots to the ship her official number (which for ships over 100 GT is identical to the IMO number) and issues the ship's carving and marking note which is given to the owner. The owner should ensure that his ship is marked in accordance with the requirements of section 8 of the Merchant Shipping (Registration of Ships, Sales and Mortgage) Law, 45/63 as amended.

The owner must then ask a surveyor of ships (surveyors of any of the recognised and authorized classification societies or of the Department of Merchant Shipping) to inspect the ship's carving and marking. When the surveyor is satisfied that these have been made in accordance with the requirements of the aforesaid section, he will complete and sign the lower part of the note, verifying that these have been carried out and return it to the owner.

The owner should forward the duly verified Ship's Carving and Marking Note to the Registrar of Cyprus Ships in order to enable him to proceed with the permanent registration of the vessel.

Certificate of Cyprus Registry
After receipt of all the documents set out in the previous section, and provided the appropriate fees have been paid, the Registrar of Cyprus Ships will proceed with the permanent registration of the vessel and the issue of the Certificate of Cyprus Registry (form M.S. 4 or M.S.4B).

The Register of Cyprus Ships
Transfers, transmissions and mortgages (registration/ discharges) must be recorded in the Register of Cyprus Ships. The relevant application must be submitted to the Registrar and the relevant documents may be deposited with the Registrar or a consular officer, as the instructions of the Registrar.

Change of Ship's Name
A change of the ship's name may be effected by submitting an application to the Registrar. When the change of name is approved, a period of three (3) days must lapse from the date of application before the new name can be marked on the ship and the ship's documents be endorsed to this end. It should be noted that no two ships registered under the Cyprus flag may have either the same or closely similar names.

Deletion
A Cypriot ship has to be deleted from the Register of Cyprus Ships as soon as the ownership is transferred to a person (legal or natural) not qualified to own a Cyprus ship under the merchant shipping legislation.

In the alternative, Cyprus ship may be deleted from the Registry upon the submission of an application by the owner of the ship in order for the same to be registered in a foreign registry.

No export license is required for the deletion of a vessel from the Register of Cyprus Ships. A deletion certificate or a closed transcript of registry is issued as soon as the registered mortgages and other encumbrances are discharged and all matters pending with the Registry, including financial obligations, are settled.

Bareboat Charter Registration

Parallel Registration
Options
Under Cypriot legislation parallel (bareboat) registration of vessels is possible. The legislation provides for the two forms of internationally accepted bareboat registration: ˜Parallel-in' registration and ˜Parallel-out' registration.

These two options offer some very interesting opportunities for leaseback, hire purchase and finance arrangements.

The administrative practice of the Department of Merchant Shipping has confirmed that the parallel (bareboat) registration of vessels under the Cyprus regime may be effected with more than 20 states whose legislation is compatible with Cypriot legislation.

Parallel-in Registration
This form of registration offers the possibility to a foreign flag vessel on bareboat charter to a person (legal or physical, qualified to own a Cyprus vessel) to be registered in ‘parallel' under the Cyprus flag for a period, usually 2 years, which is renewable.

Under this type of registration, the deletion of the registration in the foreign register is not required, but the foreign nationality is suspended and the foreign registry is operative only with respect to the ownership and encumbrance's status of the ship.

The law of the country of the foreign registry must allow the parallel registration of the ships registered in its register.

Age Limit
The Government policy on the age limit of vessels which may be registered in the Register of Cyprus Ships is applicable to the parallel-in registration of vessels.

Application and Documentation
The application for the parallel-in registration of a vessel is submitted by the bareboat charterer who must be a person (legal or physical) qualified to own a Cyprus ship under the Cypriot merchant shipping legislation (see relevant section: Condition of Ownership). The following documents (duly executed, where applicable) must be submitted to the Registrar of Cyprus Ships for this purpose:
Application for parallel-in registration by a local lawyer acting on behalf of the bareboat charterer, to the Minister of Communications and Works through the Registrar of Cyprus Ships, requesting the parallel registration of the vessel in the Register of Cyprus Ships;
Memorandum and articles of association of the company (bareboat charterer);
Certificates of incorporation, directors and secretary, shareholders and registered office of the Bareboat Charterer;
Resolutions of Directors of the company resolving to bareboat charter the vessel and register her parallel-in in the Special Book of Parallel Registration;
Power of attorney authorising the person who will sign all the necessary documents in relation to the parallel registration;
Appointment of Authorised Representative (M.S. 57);
Certificate of measurement of the vessel;
Certified copy of the bareboat charter party;
Certified written consent of the owner for the parallel-in registration;
Certified written consent of the mortgagees, if any;
Written consent of the foreign register with an official translation;
Certificate of encumbrances from the foreign register;
Registration Form of a Mobile Maritime Radio Station (M.S.34);
Registration Form of SAR particulars (M.S.45) (where appplicable);
Tonnage Certificate of the vessel;
Certificate of encumbrances from the foreign register;
Continuous Synopsis Record from the previous register;
Confirmation of Radio Traffic Accounting Authority (where applicable);
Confirmation of Vessel's Classification Society (where applicable);
Form ISPS C1 (Circular 18/2003) (where the International Ship and Port Facility Security Code is applicable);Continuous Synopsis Record (C.S.R.) (where applicable). The deletion CSR must be forwarded within three (3) months in the case of ships coming from a foreign registry.
In the case of a corporation established in the European Union or the European Economic Area
Tonnage and Name of the Vessel

For the parallel-in registration, a new measurement of the tonnage of the vessel is not required.
The Certificate of Survey and the Tonnage Certificate are issued on the basis of the corresponding documents of the foreign registry. Ships registered parallel-in may keep the name of the foreign registry, but this name must not be the same as the name of a ship already registered in the Register of Cyprus Ships. Ships registered parallel-in may change their name under the same conditions as those applicable to Cyprus ships registered provisionally or permanently. In such cases, the application must be made by the bareboat charterer with the written consent of the shipowner and of the mortgagees and the submission of the Master's confirmation as to the change of name. The change of name must be notified to the foreign registry.

Certificate of Cyprus Registry
After receipt of all the documents set out above and provided the appropriate fees have been paid, the Registrar of Cyprus Ships will proceed with the parallel-in registration of the vessel in the Special Book of Parallel Registration of the Cyprus Register and the issue of the Certificate of Cyprus Registry (Form M.S.4A).

Status of Vessels Registered Parallel-In
Vessels registered parallel-in in the Register of Cyprus Ships must hoist the Cyprus flag and are not allowed to use the flag of the country of the foreign registry. The port of registry marked on the stern of the ship must be LIMASSOL (LEMESOS) and not that of the foreign registry.

The transfer of ownership of a vessel registered parallel-in in the Special Book of Parallel Registration of the Cyprus Register is effected in accordance with the law of the foreign register and not in accordance with the provisions of the Cypriot merchant shipping legislation. The transfer of ownership is only notified to the Registrar of Cyprus Ships who will make the necessary changes in the Certificate of Cyprus Registry. Mortgages are created only by the shipowner, and in accordance with the law of the country of foreign register in which they shall be recorded. The constitution of such mortgages and other encumbrances is only notified to the Registrar of Cyprus Ships. Except for matters relating to the transfer of ownership and mortgages and other encumbrances, all other matters in relation to vessels registered parallel-in in the Cyprus Register of Ships are governed by the Merchant Shipping (Registration of Ships, Sales and Mortgages) Law, 45/63 as amended.

The extension of the status of the parallel registration and the registration of the vessel parallel-in is allowed, so long as the prerequisite conditions according to the law applicable at the time of the initial registration continue to apply.

Termination of Parallel-In Registration
The termination of the status of a vessel registered parallel-in is effected in the following cases:
Where the foreign registry revokes its consent for the parallel-in registration in the Cyprus Register of Ships;
In case of termination of the bareboat charter;
Upon the lapse of the period of time for which the Minister of Communications and Works has approved the parallel-in registration of the vessel;
If there exists any reason for deletion which, under the Cypriot merchant shipping legislation, applies in cases of ships provisionally or permanently registered in the Cyprus Register of Ships.
Upon such a termination the vessel is deleted from the Special Book of Parallel Registration of the Cyprus Register.

Parallel-Out Registration
Under the Merchant Shipping (Registration of Ships, Sales and Mortgages) Law, 45/63 as amended, Cyprus ships may be bareboat chartered to a foreign person or company and registered ‘parallel-out' in a foreign register for the duration of the charter party. This so called ‘Parallel-out' registration allows the financing of a ship and her mortgaging under the Cyprus flag and her registration in a foreign registry through a bareboat charter arrangement.

The parallel-out registration of a Cyprus ship is possible if she is bareboat chartered to a foreign individual or corporation and the law of the country of the foreign registry allows the parallel registration of vessels of another registry, under prerequisite conditions similar to those set out for the parallel-in registration of ships in the Cyprus Register of Ships.

This type of registration is possible for Cyprus ships which are provisionally or permanently registered in the Cyprus Register of Ships. The parallel-out registration of a Cyprus ship must be approved by the Minister of Communication and Works.

Application and Documentation
The application for the parallel-out registration of a Cyprus vessel is effected by her owner. The following documents dully executed (where applicable) must be submitted to the Registrar of Cyprus Ships for this purpose:
Application for parallel-out registration by a local lawyer acting on behalf of the registered owner, to the Minister of Communications and Works through the Registrar of Cyprus Ships, requesting the parallel-out registration of the vessel;
Resolutions of the directors of the shipowning company resolving to bareboat charter the ship;
Power of attorney if a third person is signing the bareboat charter party on behalf of the owners;
Certified copy of the bareboat charter party;
Certified written consent of the bareboat charterer for the parallel-out registration;
Original certificate of Cyprus Registry;
Written consent of the foreign registry confirming also that the law of the country allows the parallel registration of the Cyprus ship in its register with an official translation;
Certified written consent of the mortgagees, if any;
Confirmation from a recognised radio traffic accounting authority that they will continue to settle the vessel's radiomaritime accounts;
Common declaration by the shipowner and charterer that they undertake to produce to the Registrar within one month, a certified copy of the foreign certificate of parallel registration and to notify every alteration which takes place regarding the name or other particulars of the ship, during the period the status of parallel registration of the ship in the foreign register is in force.

Approval of Parallel-Out Registration
Provided that the appropriate fees have been paid and all the necessary documentation has been deposited with the Registrar of Cyprus Ships, the Minister of Communications and Works may allow the parallel-out registration of the vessel for a period not greater than 3 years. Such a period is renewable if the conditions imposed on first registration continue to apply. Upon the approval by the Minister of the parallel-out registration of the vessel, the Cypriot nationality of the vessel is suspended and the Cyprus Certificate of Registration must be delivered to the Registrar of Cyprus Ships.

Status of Vessels Registered Parallel-Out
Cyprus vessels registered parallel-out must hoist the flag of the foreign registry and cannot use the Cyprus flag. Also, the port of registry marked on the stern of the vessel must be that of the foreign registry.

Transfers of ownership and any transactions affecting mortgages (i.e. creation, registration, transfer and discharge) on Cyprus ships registered parallel-out, are exclusively governed by Cypriot legislation and no action in relation to these matters may be taken by the foreign registry.

Entries made in the Register of Cyprus Ships regarding transfers of ownership or mortgages on Cyprus ships registered parallel-out, are only notified by the Registrar of Cyprus Ships to the foreign registry.
Termination of Parallel-Out Registration

The status of the vessels registered parallel-out continues to be in force for the duration of the charter party, if the approval of the Minister and the consent of the foreign registry are in force, but in any case for a period not greater than 3 years, unless it is renewed. The Certificate of Cyprus Registry is returned to the shipowner as soon as the parallel-out registration is terminated.

Vessel and Yacht Eligibility & Survey Requirements

Vessels of any size and type may be registered in the Cyprus Register of Ships or the Special Book of Parallel Registration as long as they comply with the provisions contained in the merchant shipping legislation and the circulars of the Department of Merchant Shipping, satisfy certain conditions according to their age and type.

Government Policy on the Registration of Vessels in the Cyprus Register of Ships
Vessels of any size and type, may be registered in the Cyprus Register of Ships or the Special Book of Parallel Registration as long as they comply with the provisions contained in the merchant shipping legislation and the circulars of the Department of Merchant Shipping (DMS). In addition, they must also comply with the following conditions, according to their age and type which must be fulfilled concurrently with the submission of the application for registration and must be complied with at all times while the vessel remains registered, irrespective of any subsequent transfer of ownership.

Notwithstanding the above, the owner/bareboat charterer of a vessel registered under the Cyprus flag in accordance with the Government policy, automatically undertakes that whenever the DMS deems necessary to have the vessel inspected by its own surveyors as a result of identified deficiencies or an alleged serious violation of international conventions or EU instruments or prohibition of transportation orders or any other notification published in the Official Gazette of the Republic, he is required to submit the vessel for inspection, at his expense, in order for the Department to determine whether the vessel meets the applicable statutory requirements.

Notwithstanding the above, in the case of parallel registration of a Cyprus vessel in a foreign register or in the case of a lay-up of a Cyprus vessel either in Cyprus or in a foreign country, the conditions, if any, imposed at the time of its initial registration are suspended for the duration of the status of parallel registration or for as long as the lay-up of the vessel lasts.

Any change in the mode of registration of a vessel (provisional, permanent, parallel) does not affect the conditions, if any, which currently apply to it since the time of its initial registration, provided that there is no practical discontinuity in its registration in the Cyprus Register of Ships.

Vessels of any age constructed exclusively for inland waterway navigation are not accepted for registration in the Cyprus Register of Ships.

Vessels which are banned by any Memorandum of Understanding on port state control or a port state on grounds of safety, pollution prevention or for security reasons are not accepted for registration in the Cyprus Register of Ships.

Vessels detained by port state control authorities 3 times or more within the last 2 years prior to the date of application for registration at ports of the Paris MOU, Tokyo MOU or the US Coastguard on grounds of safety, pollution prevention or for security reasons are not accepted for registration in the Cyprus Register of Ships.

The age of a vessel is calculated by deducting the year when its keel was laid from the year when the application or registration of the vessel was filed with the Registrar of Cyprus Ships. For the purposes of the present policy, the year of major conversion or reconstruction of a vessel will be taken into account for the calculation of its age provided that on the date of the conversion or reconstruction the vessel complies with all the provisions of the international maritime conventions as a new vessel.

The full text of the Government Policy on the Registration of Vessels is available in the website of the Department of Merchant Shipping www.shipping.gov.cy (Circular No. 14/2009).

Policy on Vessel Registration
Related conditions
Type of ship Maximum Entry inspection Additional inspection
age limit required required
Cargo ships and Cargo High Speed Craft, other than liquefied gas carriers Yes Yes No
≤ 25 years if ≥ 15 years
Liquefied gas carriers Yes Yes No
≤ 35 years if ≥ 15 years
Passenger ships and Passenger High Speed Craft engaged on international or short international voyages No Yes Yes
if ≥ 30 years if 2 years ≤ Age ≤ 10 years
Biannual
if Age > 10 years
Annual
Passenger ships and Passenger High Speed Craft engaged on domestic voyages within the territory of a State, other than Cyprus No Yes Yes
if ≥ 25 years if 2 years ≤ Age ≤ 10 years
Biannual
if Age > 10 years
Annual
Passenger ships and Passenger High Speed Craft engaged on domestic voyages within the territory of Cyprus No Yes No
if ≥ 20 years In order to operate they are required to be inspected and certified annually
Fishing vessel* Yes Yes No
≤ 25 years if ≥ 20 years
Floating Production Storage Offloading; Floating Storage Offloading Vessels and Mobile Offshore Drilling Units Yes Yes No
≤ 25 years if ≥ 15 years
Ships of types other than those listed above Yes Yes Yes
≤ 35 years if ≥ 20 years if the ship is carrying industrial or special purpose personnel and
2 years ≤ Age ≤ 10 years
Biannual
Age > 10 years
Annual
"Cargo ship" means a ship which has been constructed or adapted for the purpose of carrying cargo in any form.
«Liquefied Gas Carrier» should be a new ship in accordance with the Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (the Gas Carrier Code) adopted by resolution A.328(IX).
"Passenger ship" means a ship which has been constructed or adapted for the purpose of carrying fare-paying passengers.

* The Registrar will not consider applications for the registration fishing vessels unless they are accompanied by an official communication from the Director of the Department of Fisheries and Marine Research of the Ministry of Agriculture, Natural Resources and the Environment, informing the Registrar of Cyprus ships that the registration of the fishing vessel in question is allowed. Additional requirements for registration are requested.
Language of Supporting Documentation
Cypriot legislation provides that all documents which refer to Cyprus ships (i.e. including documents for their registration) are admissible provided that they are drawn up in a language comprehensible to the competent officers of the Department of Merchant Shipping. In practice, most of the documents are admissible in the English language. Such provision makes the registration of vessels faster and saves on translation expenses.
Ownership
The application for registration must be accompanied by documents attesting ownership and compliance with the various conditions which need to be fulfilled at the time of the provisional registration, the direct permanent registration or the parallel-in registration, as the case may be.
Entry/Occasional Inspection
The entry and the additional inspections are carried out by the Surveyors of the Department of Merchant Shipping at the expense of the registered shipowner/bareboat charterer, as the case may be.
The entry inspection of a vessel should be carried out at the latest within 3 months from the date of provisional or parallel-in registration, or within 1 month from the date of permanent registration, or direct permanent registration.

The additional inspection, where required, should be carried out within three (3) months before or after the anniversary of the date of the registration of the ship and should be held:
(1) Every other year when the ship is having an age equal or greater than two years and equal or less than ten years; and
(2) Every year when the ship is having an age greater than ten years.
In case the parallel out registration of a ship, which is required to undergo an entry and/or an additional inspection, is effected within three (3) months from the date of the provisional or direct permanent registration, the entry inspection and, where required, the additional inspections, are postponed for the duration of the period the ship is allowed to be registered in parallel in a foreign registry and should be carried out no later than three (3) month from the date of expiry or termination of the period parallel out registration.

In case a ship, which is required to undergo an entry and/or an additional inspection, is laid up or is to be laid up within three (3) months from the date of the provisional or direct permanent or parallel in registration, the entry inspection and, where required, the additional inspections are postponed for the duration of the laid-up period and should be carried out no later than three (3) months from the date on which the lay-up period ended.

Management and Operation of a Vessel
The management and operation of a vessel is evidenced by the Joint Declaration on the Operation of a Ship (form ISM.01Revision 3)(See Circular No. 27/2006).

A vessel is considered as managed and operated by a ship management company if that company holds, or is to be issued by or on behalf of the Government of the Republic of Cyprus with a valid, for the type of the vessel, Document of Compliance (DoC) or Interim DoC and the vessel is to be issued with a Safety Management Certificate (SMC) or Interim SMC by or on behalf of the Government of the Republic of Cyprus, indicating that it is operated by the said company. Alternatively, the management of a vessel shall be proved by an audit of the management company carried out to the satisfaction of the Department of Merchant Shipping. Such audit shall be carried out to the extent possible, in accordance with the requirements of the ISM Code.

Request for Assessment and Certification in accordance with the provisions of Chapter IX of SOLAS 74 as amended and the ISM Code

The entry into force of Chapter IX of SOLAS 74, as from 1 July 2002, made the International Safety Management Code (ISM Code) mandatory for all vessels, irrespective of type, of 500 gross tonnage and upwards.

The management companies must hold a valid interim or full term Document of Compliance (DoC) issued or on behalf of the Republic of Cyprus and each passenger and cargo vessel of 500 gross tons and upwards should be provided with a valid Safety Management Certificate (SMC).

Cyprus has already enacted the necessary legislation and the Department of Merchant Shipping has issued several Guidance Notes, since the introduction of the ISM Code. The latest consolidated Guidance Note (Circular 27/2006) contains, among other things:
The notification procedure to be followed by the owner of each Cyprus ship in order to identify to the Department the company;
Additional requirements on matters to be addressed by the Safety Management System (SMS);
Authorized organizations which the owner or the company may engage for the purpose of verification and certification of the SMS;
Mandatory rules and regulations which, as a minimum, must be addressed by the SMS.

Document of Safe Manning
Every Cyprus ship should be in possession of a valid document of safe manning specifying the number and composition of her complement. Owners of Cyprus ships should apply to the Department of Merchant Shipping requesting the issue of a document of safe manning.

If the vessel is designed and constructed with unattended machinery spaces, or is provided with any other automated machinery or remote controls, on account of which the owner may seek reduced manning, then the owner should indicate these in his application and should request the vessel's classification society to advise the Department on these, including the corresponding class notation and confirm the class position of the vessel, as far as this notation is concerned.

If the vessel is to be engaged exclusively in trading in a particular geographical area and the owner seeks reduced manning on account of this, then he should indicate it by stating the names of the ports from which the vessel will be plying or by providing the geographical co-ordinates (latitude and longitude) and other appropriate information defining the geographical area in which the vessel will be sailing or by submitting an appropriately marked chart.

Classification Societies, Recognized Organizations and Recognized Security Organisations
American Bureau of Shipping (ABS)
Bureau Veritas (BV)
China Classification Society (CCS)
Det Norske Veritas (DNV)
Korean Register of Shipping (KRS)
Lloyd's Register of Shipping (LRS)
Nippon Kaiji Kyokai (NKK)
Registro Italiano Navale (RINA)
Russian Maritime Register of Shipping (RS)
Polski Rejestr Statkow (PRS)

Crewing

Certificates of Competency for Officers and Ratings
Officers and ratings serving on board Cyprus flag vessels are not required to hold Certificates of competency issued by the Government of the Republic of Cyprus, however they must hold valid and recognized certificates of competency for the post they hold on board. Officers serving on board Cyprus flag vessels are required to hold, in addition to their non-Cyprus certificate of competency, a Cyprus endorsement attesting the recognition of their certificate in accordance with the STCW 1978 Convention as amended.

Seafarer's Identification and Sea-Service Record Book
All registered seamen shall apply for a Seafarer's Identification and Sea service Record Book (SISRB) which is issued by the Department of Merchant Shipping.

The Seafarer's Identification and Sea-service Record booklet is valid for a period of ten years from the date of its issue, after which a new one is issued by the Department of Merchant Shipping.
The engagement and discharge of the seafarer, as well as the entries relating to the training of familiarisation with the ship, are made by the Master.

Nationality of Crew
Crew members may be of any nationality provided they are holders of certificates of competency issued by one of the countries on the IMO List. Officers may be of any nationality provided they are holders of certificates of competency issued by one of the countries, whose certificate of competency Cyprus has recognized and have also applied for Cyprus endorsement of their certificates of competency in accordance with the STCW 1978 Convention as amended.

In order to facilitate the manning of ships flying its flag, the Cypriot Government has concluded a number of bilateral agreements in the field of merchant shipping with labour supplying countries.

Mortgages

Once a ship has been registered under the Cyprus flag, a mortgage can be created thereby securing a loan or other financial obligations on conditions agreed to by the parties, without the need for exchange control permission. The creation of a mortgage under Cypriot laws is not allowed on vessels registered parallel-in in the Cyprus Register of Ships.

A mortgage once created must be deposited with the Registrar of Cyprus Ships or with a consular officer on the instructions of the Registrar. Whether deposited with the Registrar or with a consular officer, the mortgage is recorded thereafter in the Register as from the date and time of its deposit and remains an encumbrance on the vessel until discharged by the mortgagees. A mortgage may be created independently of whether the ship is provisionally or permanently registered.

If the ship on which a mortgage was created belongs to a Cypriot company, the mortgage will also have to be registered with the Registrar of Companies within a maximum period of 42 days after its creation. The mortgagee's security is protected in the case of liquidation of the shipowning company. Transfer of a mortgage may be effected by completing the statutory form of transfer and submitting it to the Registrar of Cyprus Ships or to a consular officer. The fees payable on transfer are the same as those for the registration of the mortgage on the ship.

In order to discharge a mortgage, a memorandum of discharge will need to be duly executed by the mortgagee. It will then have to be attested and delivered to the Registrar of Cyprus Ships or a consular officer on the instructions of the Registrar.

Fees

Although Cyprus has much to offer in terms of infrastructure and maritime administration ultimately the bottom line is costs. In terms of registration fees and taxes, Cyprus is considered to be among the most competitive shipping centres in the world. The fees listed below are lower than those of Cyprus' main competitors.
The fees are expresses in EURO.
The registration fees are calculated as follows:
For vessels other than passenger ships:
GROSS TONNAGE
For each unit up to 5.000 Although Cyprus has much to offer in terms of infrastructure and maritime administration ultimately the bottom line is costs. In terms of registration fees and taxes, Cyprus is considered to be among the most competitive shipping centres in the world. The fees listed below are lower than those of Cyprus' main competitors.
The fees are expresses in EURO.
The registration fees are calculated as follows:
For vessels other than passenger ships:
GROSS TONNAGE
For each unit up to 5.000 0.17086
For each additional unit between 5.001-10.000 0.13669
For each additional unit over 10.000 0.06834
The minimum fee is 213.58 and the maximum fee is 5,125.80
For passenger ships:
GROSS TONNAGE
For each gross unit 0.25629
The minimum fee is 427.15
Fees for the Recording, Transfers or Discharge of Mortgages
For the recording or transfer of a mortgage, the fees payable are calculated as follows:
GROSS TONNAGE
For each unit up to 10.000 0.03417
For each additional unit over 10.000 0.01709
The minimum fee is 51.26
No fee is payable for the discharge of mortgages.
Fees for the Transmission of a Mortgage: EUR 85,43.
Fees for the Transfer or Transmission of Ships
For the transfer or transmission of a ship, the fees payable are calculated as follows:
GROSS TONNAGE
For each unit up to 10.000 0.03417
For each additional unit over 10.000 0.01709
The minimum fee is 51.26
Deletion of a Ship from the Register of Cyprus Ships
No fee is payable for the deletion of ships. However, all other statutory fees and taxes due or in arrears at the time of the vessel's deletion should be paid.
Other Fees
EURO
Examination of an application for the registration of a vessel in the Register of Cyprus Ships
34,17
Examination of an application for change of the vessel's name
34,17
Approval and change of the vessel's name
136,69
Issue or replacement of a provisional, permanent or parallel certificate of registration
17,09
Granting of ship's carving and marking note
17,09
Issue of transcript of registry
25,63
Radio licence installation
17,09
Radio licence renewal
17,09
Issue of Continuous Synopsis Record
34,17
Safe Manning Certificate
42,72
Issue of a Certificate under the 1992 Civil Liability Oil Pollution Damage Convention (CLC Certificate)
51,26
Issue of a Certificate under the 2001 Bunkers Convention (Bunkers Certificate)
51,26
Re-inspection of a ship after detention (Port State Control)
683,44
For various other services or for the issue of certain certificates for which minor fees are also payable, please refer to the First Schedule of the repealed Merchant Shipping (Fees and Taxing Provisions) Laws, 1992-2007 (Law 38(I)/1992 as amended), which is still in force until its full repeal and replacement.
Fees and Taxes Payable on Provisional Registration
The following fees and taxes are payable at the time of the provisional registration of a vessel:
Registration fees;
Tonnage tax for 6 months;
Fees for obtaining a licence to install and operate a wireless telegraphy and/or telephony station;
Fee for the issue of the provisional certificate of Cyprus Registry;
Fees for the issue of any other certificates requested (i.e Safe Manning Certificate, Bunkers Certificate).
These should be paid not later than the date on which the provisional registration of the vessel will be effected.
Fees and Taxes Payable for the Extension of the Period of Provisional Registration
For extending the period of the provisional registration of a vessel under the Cyprus flag for a maximum period of 3 months, the following fees and taxes are payable:
One half of the registration fees;
Tonnage tax for 3 months.
These should be paid prior to the expiry date of the period of provisional registration.
Fees and Taxes Payable on Permanent Registration
If the relevant registration fees have been paid at the time of the provisional registration of the vessel and the period of provisional registration has not expired, then no other fees and taxes are levied for the permanent registration of a vessel apart from:
Fee for the issue of the certificate of Cyprus Registry;
Payment of any other statutory fees and taxes due or in arrears at the time of the permanent registration of the vessel.
No other fee is payable if the permanent registration takes place before the expiry of the provisional registration period. Otherwise the fees payable on provisional registration are payable anew.
In case of a direct permanent registration of the ship, there shall be charged, levied and collected the tonnage tax corresponding to the non-expired part of the year, during which the permanent registration of the ship takes place.
Fees and Taxes Payable Annually
The following fees and taxes are payable each year:
Tonnage tax;
Cyprus registry maintenance annual fee;
Fees for the renewal of the licence to install and operate a wireless telegraphy and/or telephony station.
Fees and Taxes Payable on Parallel (Bareboat) Registration
The initial registration fees for the parallel registration of a foreign vessel under the Cyprus flag (parallel-in registration) are 20 percent higher than those applicable to the provisional or permanent registration of the vessel. If the foreign vessel under the Cyprus flag is deleted and thereafter re-registered and the chartering is effected to the benefit of the same charterer prior to the deletion, the re-registration fees are reduced by 50 percent. There is no increase in the tonnage tax or other dues payable and the vessel is subject to the same financial obligations as other Cyprus ships.
A Cyprus ship registered in parallel in a foreign register (parallel-out registration) has the same financial obligations as all other Cyprus ships, with the exception of the fees for the issue or renewal of the radio licence. If the vessel is deleted from the Cyprus Registry prior to the termination of her status of parallel-out registration, that fraction of the tonnage tax which is proportional to the period from her deletion until the termination of her status of parallel registration is not reimbursed.
The financial obligations of vessels registered in parallel are payable in advance for the entire period of the parallel (bareboat) registration, and are not reimbursed even if the parallel registration is terminated earlier.0.17086
For each additional unit between 5.001-10.000 0.13669
For each additional unit over 10.000 0.06834
The minimum fee is 213.58 and the maximum fee is 5,125.80
For passenger ships:
GROSS TONNAGE
For each gross unit 0.25629
The minimum fee is 427.15
Fees for the Recording, Transfers or Discharge of Mortgages
For the recording or transfer of a mortgage, the fees payable are calculated as follows:
GROSS TONNAGE
For each unit up to 10.000 0.03417
For each additional unit over 10.000 0.01709
The minimum fee is 51.26
No fee is payable for the discharge of mortgages.
Fees for the Transmission of a Mortgage: EUR 85,43.
Fees for the Transfer or Transmission of Ships
For the transfer or transmission of a ship, the fees payable are calculated as follows:
GROSS TONNAGE
For each unit up to 10.000 0.03417
For each additional unit over 10.000 0.01709
The minimum fee is 51.26
Deletion of a Ship from the Register of Cyprus Ships
No fee is payable for the deletion of ships. However, all other statutory fees and taxes due or in arrears at the time of the vessel's deletion should be paid.
Other Fees
EURO
Examination of an application for the registration of a vessel in the Register of Cyprus Ships
34,17
Examination of an application for change of the vessel's name
34,17
Approval and change of the vessel's name
136,69
Issue or replacement of a provisional, permanent or parallel certificate of registration
17,09
Granting of ship's carving and marking note
17,09
Issue of transcript of registry
25,63
Radio licence installation
17,09
Radio licence renewal
17,09
Issue of Continuous Synopsis Record
34,17
Safe Manning Certificate
42,72
Issue of a Certificate under the 1992 Civil Liability Oil Pollution Damage Convention (CLC Certificate)
51,26
Issue of a Certificate under the 2001 Bunkers Convention (Bunkers Certificate)
51,26
Re-inspection of a ship after detention (Port State Control)
683,44
For various other services or for the issue of certain certificates for which minor fees are also payable, please refer to the First Schedule of the repealed Merchant Shipping (Fees and Taxing Provisions) Laws, 1992-2007 (Law 38(I)/1992 as amended), which is still in force until its full repeal and replacement.

Fees and Taxes Payable on Provisional Registration
The following fees and taxes are payable at the time of the provisional registration of a vessel:
Registration fees;
Tonnage tax for 6 months;
Fees for obtaining a licence to install and operate a wireless telegraphy and/or telephony station;
Fee for the issue of the provisional certificate of Cyprus Registry;
Fees for the issue of any other certificates requested (i.e Safe Manning Certificate, Bunkers Certificate).
These should be paid not later than the date on which the provisional registration of the vessel will be effected.
Fees and Taxes Payable for the Extension of the Period of Provisional Registration
For extending the period of the provisional registration of a vessel under the Cyprus flag for a maximum period of 3 months, the following fees and taxes are payable:
One half of the registration fees;
Tonnage tax for 3 months.
These should be paid prior to the expiry date of the period of provisional registration.
Fees and Taxes Payable on Permanent Registration
If the relevant registration fees have been paid at the time of the provisional registration of the vessel and the period of provisional registration has not expired, then no other fees and taxes are levied for the permanent registration of a vessel apart from:
Fee for the issue of the certificate of Cyprus Registry;
Payment of any other statutory fees and taxes due or in arrears at the time of the permanent registration of the vessel.
No other fee is payable if the permanent registration takes place before the expiry of the provisional registration period. Otherwise the fees payable on provisional registration are payable anew.
In case of a direct permanent registration of the ship, there shall be charged, levied and collected the tonnage tax corresponding to the non-expired part of the year, during which the permanent registration of the ship takes place.
Fees and Taxes Payable Annually
The following fees and taxes are payable each year:
Tonnage tax;
Cyprus registry maintenance annual fee;
Fees for the renewal of the licence to install and operate a wireless telegraphy and/or telephony station.
Fees and Taxes Payable on Parallel (Bareboat) Registration
The initial registration fees for the parallel registration of a foreign vessel under the Cyprus flag (parallel-in registration) are 20 percent higher than those applicable to the provisional or permanent registration of the vessel. If the foreign vessel under the Cyprus flag is deleted and thereafter re-registered and the chartering is effected to the benefit of the same charterer prior to the deletion, the re-registration fees are reduced by 50 percent. There is no increase in the tonnage tax or other dues payable and the vessel is subject to the same financial obligations as other Cyprus ships.
A Cyprus ship registered in parallel in a foreign register (parallel-out registration) has the same financial obligations as all other Cyprus ships, with the exception of the fees for the issue or renewal of the radio licence. If the vessel is deleted from the Cyprus Registry prior to the termination of her status of parallel-out registration, that fraction of the tonnage tax which is proportional to the period from her deletion until the termination of her status of parallel registration is not reimbursed.
The financial obligations of vessels registered in parallel are payable in advance for the entire period of the parallel (bareboat) registration, and are not reimbursed even if the parallel registration is terminated earlier.

Contact

Ship inspection and casualty investigation services

Shipping Deputy Ministry to the President (DMS)
Dr Christos Atalianis
Kyllinis Street
Mesa Geitonia
CY-4007 , P. O. Box 56193 , CY-3305 Lemesos
Limassol
CY 4007
Cyprus
Phone
357 25 848100/265/266
Email
shipcontrol@dms.gov.cy
Web
https://www.shipping.gov.cy
Fax
+357.2584.8200

Stockholm Agreement 96
IMO Convention 48
* IMO amendments 91 
* IMO amendments 93
SOLAS Convention 74
SOLAS Protocol 78
SOLAS Protocol 88
LOAD LINES Convention 66
LOAD LINES Protocol 88
TONNAGE Convention 69
COLREG  Convention 72
CSC Convention 72
CSC amendments 93
SFV Protocol 93
STCW  Convention 78
STCW-F Convention 95
SAR  Convention 79
STP Agreement 71
STP Protocol 73
IMSO Convention 76
INMARSAT OA 76
INMARSAT amendments 94
INMARSAT amendments 98
IMSO amendments 2006
IMSO amendments 2008
FACILITATION Convention 65
MARPOL 73/78 (Annex I/II)
MARPOL 73/78 (Annex IV)
MARPOL 73/78 (Annex V)
MARPOL Protocol 97 (Annex VI)
London Convention 72
London Convention Protocol 96
INTERVENTION Convention 69
INTERVENTION Protocol 73
CLC Convention 69
CLC Protocol 76
CLC Protocol 92
FUND Convention 71
FUND Protocol 92
FUND Protocol 2003
NUCLEAR Convention 71
MARPOL 73/78 (Annex III)
PAL Protocol 76
PAL Protocol 90
PAL Protocol 02
LLMC Convention 76
LLMC Protocol 96
SUA Convention 2005
SUA Protocol 2005
SALVAGE Convention 89
OPRC  Convention 90
HNS Convention 96
OPRC/HNS 2000
BUNKERS CONVENTION 01
ANTI FOULING 01
BALLASTWATER 2004
NAIROBI WRC 2007
HONG KONG CONVENTION
HNS PROT 2010
Cape Town Agreement 2012
SUA Convention 88
SUA Protocol 88

IMO Conventions

Status of Conventions Cyprus

IMO Convention 48 x
SOLAS Convention 74 x
SOLAS Protocol 78 x
SOLAS Protocol 88 x
SOLAS Agreement 96
LOAD LINES Convention 66 x
LOAD LINES Protocol 88 x
TONNAGE Convention 69 x
COLREG Convention 72 x
CSC Convention 72 x
CSC amendments 93
SFV Protocol 93
Cape Town Agreement 2012
STCW Convention 78 x
STCW-F Convention 95
SAR Convention 79 x
STP Agreement 71 x
Space STP Protocol 73 x
IMSO Convention 76 x
INMARSAT OA 76 x
IMSO amendments 2006
IMSO amendments 2008
FACILITATION Convention 65 x
MARPOL 73/78 (Annex I/II) x
MARPOL 73/78 (Annex III) x
MARPOL 73/78 (Annex IV) x
MARPOL 73/78 (Annex V) x
MARPOL Protocol 97 (Annex VI) x
London Convention 72 x
London Convention Protocol 96
INTERVENTION Convention 69
INTERVENTION Protocol 73
CLC Convention 69 d
CLC Protocol 76 x
CLC Protocol 92 x
FUND Protocol 76 x
FUND Protocol 92 x
FUND Protocol 2003
NUCLEAR Convention 71
PAL Convention 74
PAL Protocol 76
PAL Protocol 90
PAL Protocol 02
LLMC Convention 76 x
LLMC Protocol 96 x
SUA Convention 88 x
SUA Protocol 88 x
SUA Convention 2005
SUA Protocol 2005
SALVAGE Convention 89
OPRC Convention 90
HNS Convention 96 x
HNS PROT 2010
OPRC/HNS 2000
BUNKERS CONVENTION 01 x
ANTI FOULING 2001 x
BALLASTWATER 2004 x
NAIROBI WRC 2007 x
HONG KONG CONVENTION

x: Accession/ratification
d: Denunciation

Subscribe to Newsletter

Stay up-to date with the latest news and updates

Thanks for submitting!

Company Info

Social

  • Facebook
  • Twitter