October 21, 2022
Cyprus adopts Law on Shipping Limited Liability Company
On 6 October 2022, the Cypriot House of Representatives approved the "Limited Liability Shipping Company (LLSC) Law of 2022."
With the adoption of this law, it will be possible to establish a new type of corporate entity under the designation of "Shipping Limited Liability Company (SLLC)." The permitted business of SLLC's is exclusively limited to the ownership and operation of Cypriot ships.
Additionally, this law will create a Register of SLLC, which will be supervised by the Deputy Ministry of Shipping (which is also the current Registrar of Cypriot Ships). Inspired by the Companies Law (Cap.113), and in order to be more flexible and attractive, the new LLSC 2022 law aims to simplify procedures and aspects with its provisions.
Any companies owning Cypriot ships that are already registered in the existing Cyprus Companies Register will be able to request transfer to the new SLLC Register, subject to conditions.
Due to the high demand for the Cyprus shipping industry, the new law acts as another step towards the formation of a One-Stop-Shipping-Shop.
For additional information with respect to this Alert, please contact the following:
EY Law, Prountzos & Prountzos LLC, Nicosia