• 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
  

How a ship may be registered

The ownership of a ship is divided into one hundred shares.
A ship shall be deemed to be a Cyprus ship if more than one half of the shares are owned:

• by a Cypriot (physical person)
• by a corporation established and operating under and in accordance with the Laws of the Republic and having its registered office in the Republic
• if specially authorised by a decision of the Council of Ministers by a corporation incorporated outside the Republic in which the majority of shares are owned by Cypriots.

It is obvious therefore that for non Cypriots a Cyprus shipping company must first be registered and thereafter become the owner of the vessel. The company to be formed is a private non-resident limited liability company limited by shares. The nominal capital used in practice for shipping companies is only CYP 100 held by the shareholders in proportion to their actual percentage in the ownership of the vessel. The approval of the Central Bank of Cyprus is needed for the non Cypriot shareholders but such approval is easily granted for any percentage of participation even 100%.