The

Cyprus flag has had unprecedented success in the last few years, rising to a

position of prominence in world shipping.

Shipping

is dominant in Cyprus due to the country’s excellent geographical position, the

significant number of bilateral treaties for the avoidance of double taxation

concluded by Cyprus and the favourable taxation regime which has been

maintained even after the accession to the European Union.

A.         Ship Registration

In accordance with the relevant

law in force all registry transactions and/or applications with respect to

ships and ship registration must be effected by a local lawyer.

A vessel may only be registered

in the Registry of Cyprus Ships if:

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

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 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 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.

B.         Types of Registration

A. Provisional Registration

B. Permanent Registration

C. Parallel Registration

C.         Formation of a Cyprus Shipping company

The first step to be taken by

all non-European ship owners who wish to register a vessel under the Cyprus

flag is to form a Cyprus Shipping 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, as amended.

The filing of the Memorandum

and Articles of association with the Registrar of Companies has to be in

Greek.  The time usually required for such incorporation is about 7 days

from the filing of the incorporation documents.  The Memorandum of

association must contain the objects of the company, set out as widely as

possible.  For a shipping company, the objects usually include the

ownership and operation of vessels, the borrowing of money, mortgaging of the

vessel, etc.

The registered office of such

company 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,

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.

D.         The economic benefits of a Shipping company:

No tax on profits from the operation

or management of a Cyprus registered vessel or on dividends received from a

vessel owning company.

No capital gains tax on the

sale or transfer of a Cyprus-registered vessel or the shares of a vessel owning

company.

No estate duty on the inheritance

of shares in a ship-owning company.

No stamp duty on ship mortgage

deeds or other security documents.

Double tax treaties with 42

countries.

No exchange control and freedom

of movement of foreign currency.

Full protection for financiers

and mortgagees.

Low set up and operating costs

for companies.

E.         Other advantages when registering a vessel in Cyprus

EU flag

Classification

of Cyprus flag in the White List of the Paris and Tokyo MOUs resulting in fewer

inspections of the ships and less delays at the ports of both MOUs.

Maritime

offices in New York, London, Rotterdam, Piraeus, Brussels and Hamburg offering

services to Cyprus ships.

A

network of inspectors of Cyprus ships, covering important ports worldwide.

Signatory

to all international maritime conventions on safety and pollution prevention.

Bilateral

agreements with 29 countries in the field of Merchant Shipping.

Efficient

and qualitative provision of services by the Department of Merchant Shipping.

F.         Our Services

The

firm provides a wide spectrum of services in this field advising owners,

managers, charterers, freight forwarders and their respective insurers in

respect of:

Conducting searches on ships

files kept with the Department of Merchant Shipping

Ship registration under the

Cyprus flag

Claims for loss or damage to

cargo

Freight disputes

Collisions and salvage claims

Disputes under shipbuilding and

repairing contracts

Financing, security and the

enforcement of mortgages

Problems relating to the

employment of officers and crew

Personal injury claims

Choice of flag and registration

Aviation matters including

aircraft registration and finance