• INTRODUCTION
• TAX INCENTIVES
• ADVANTAGES OF THE CYPRUS FLAG
• DOCUMENTS TO BE SUBMITTED
• HOW A SHIP MAY BE REGISTERED
• REGISTRATION PROCEDURE
• PROVISIONAL REGISTRATION
• PERMANENT REGISTRATION
• DELETION OF VESSELS
• MORTGAGES
• PARALLEL REGISTRATION OF VESSELS

PARALLEL REGISTRATION OF VESSELS

A) Foreign registered vessels registered in parallel under Cyprus flag (Law 57/86)

1. Parallel registration of vessels is the registration of a vessel (for a certain period of time) in the Cyprus Registry whilst the vessel keeps her foreign registration
   
   Parallel registration is allowed provided the vessel is bareboat chartered by a Cyprus shipping company. Deletion from her previous registry is not required, but during parallel registration the legal status of the vessel with her previous registry is suspended except as far as the particulars of the vessel and the creation, registration and deletion of the mortgages or other legal charges is concerned.
   
   Bareboat chartering for the purpose of this law is the chartering during which the charterer acquires (during the time specified) the full control and possession of the vessel, her maritime administration, operation and management, the right to appoint and dismiss the captain and the crew and the undertaking of the liabilities against third parties. In general the charterer is acting as if he were the owner of the vessel except for the right to sell or mortgage the vessel.
2. Once the vessel is qualified as above mentioned the registration is effected with the registration of the foreign vessel in the "Special Register for Parallel Registration of the Cyprus Registry" which is kept specially for this purpose and for such period of time as the appropriate Minister shall approve subject to the following conditions:
   • the law of the country of the foreign vessel’s Registry allows the parallel registration of vessel’s in their Registry
   • the vessel fulfills the requirements of being registered under the Cyprus flag
   • an application is made together with the following documents (duly certified):
     • a copy of the charterparty (in lieu of the title of ownership and the declaration of ownership)
     • a copy of the resolution of Directors of the bareboat charterers
     • power of attorney
     • written consent of the owner of the vessel
     • written consent of the relevant appropriate authorities of the country where the vessel is registered, containing also a confirmation as to the ownership and the mortgage or other legal charges of the vessel (if any exist)
     • written consent of the mortgagees
     • the documents required for the permanent registration of a vessel under Cyprus flag

   
   A new measurement of a tonnage of the vessel is not required as the certificate of survey and the tonnage certificate shall be issued on the basis of the corresponding certificates of the foreign registry. Any new changes affecting the tonnage or the description of the vessel follow the same rules applicable for the Cyprus Registry. In case of such changes the Cyprus Shipping Authorities shall notify the appropriate maritime authorities for the foreign vessel.

3. The fees payable are those paid for the registration of vessels in the Cyprus Registry. The annual fees and charges are those payable for ships under Cyprus flag and are prepaid at the time when registration is made and are not refundable.
4. During the time of parallel registration the vessel bears the Cyprus flag, and the Cyprus port of registry. Any change of name, however is allowed upon the application of the charterer accompanied by the written consent of the owners and mortgagee (subject to the same rules for the changes of name of the vessels registered under Cyprus flag). The shipping authorities of the country of the foreign vessel are notified immediately after a change of name.
5. During the time of parallel registration the Cyprus authorities issue a Certificate of Parallel Registration, similar to the Certificate issued for vessels registered under Cyprus flag. This certificate contains the same particulars applicable to ships registered under Cyprus flag, as well as the particulars of the shipowner, the charterer, the foreign registry, and the time during which the vessel maintains the parallel registration.
6. The extension of the status of parallel registration is allowed with the re-registration of the vessel in "Special Register for Parallel Registration of the Cyprus Registry" provided the same reason and conditions are fulfilled as in the first instance. The fees payable are the same as in the first instance.
7. Mortgages or other legal charges are not affected by parallel registration. Any mortgage or legal charge created after the date of parallel registration may be registered in the Foreign Registry according to the law of that Foreign Registry.
8. The transfer of ownership for any legal cause is governed by the law of the country of the foreign registry. Such transfer however must be recorded in the "Special Registry for the Parallel Registration".
9. The revocation of the status of the parallel registration and deletion from the "Special Registry for the Parallel Registration of the Cyprus Registry" is made in the following cases:
   • in case the shipping authorities of the country of the foreign vessel revoke their consent for such parallel registration
   • upon termination of the charterparty
   • upon the lapse of time for which the registration was made
   • if any of the reasons for the deletion of ships according to the Cyprus Shipping Laws exist

As soon as such deletion takes place the Cyprus Shipping Authorities issue the relevant deletion certificate.

B) Parallel registration of Cyprus flag vessels under foreign registry (Law 64/87)

Cyprus flag vessels are allowed to be registered in foreign Registries parallel with their Cyprus registration under the following conditions:

• the approval of the Ministry of Communications and Works is granted
• such approval is granted to ships permanently registered under Cyprus flag; however the approval may be granted to vessels registered provisionally under Cyprus flag under certain conditions imposed by the Minister.
• The application for the parallel registration must be made by the shipowner and must be accompanied by the following documents
  • Copy of the charterparty
  • Written consent of the charterers
  • Written consent of the relevant maritime authorities of the country of foreign registry and confirmation that the law of the country allows parallel registration of the Cyprus flag vessel into its registry
  • Written consent of the mortgagees
  • Joint statement by the owner and the charterer that they undertake to furnish the Registrar, within one month, with a certified copy of the foreign certificate of the parallel registration and to notify every alteration effected to the name or other particulars of the ship during the time the vessel is in parallel registration.

The status of such parallel registration is in force for as long as the above conditions are adhered to. The Minister, upon an application made by the shipowner and with the consent of the mortgagees, may prolong that period if the reasons and/or conditions specified by the law continue.

During the time of parallel registration the vessels bear the flag of the foreign registry.

The Cyprus certificate of the registration of the vessel is returned to the Registrar who keeps it until the expiration of the status of the parallel registration.

During the time of the parallel registration the Cyprus Registry is suspended except for the transfer of ownership, the existence, formation, registration, transfer an deletion of mortgages.

The vessel, during that time, is subject to the same annual fees and other financial conditions (except crew fees and wireless or radiotelegraphy fees) which are prepaid for the whole period of the parallel registration at the time of approval.