Cyprus boasts one of the lowest taxation in the European Union and has, for many years now, attracted the interest of ship owners that wish to register their vessels or company there.
In Cyprus, a registry transaction and/or application regarding a sea vessel must be performed by a lawyer.
The registration of a sea vessel in Cyprus is possible when:
• More than 50% of the vessel’s shares is owned
o by Cypriot citizens or
o by citizens of other Member States of the European Union; in this case, if the owners do not live permanently in the island, they can appoint an authorized representative to act on their behalf.
• All shares are owned by one or more entities, which operate:
o in compliance with the legislation of Cyprus and their Registered Office is in the Republic;
o in compliance with the legislation of any other Member State of the European Union and have their registered office, central administration or principal place of business within the official economic area of the Union, and which have designated an official representative in Cyprus; or assign the vessel’s management to a Cypriot or Community company that operates either in Cyprus or outside Cyprus or any other Member State but controlled by EU citizens and have designated an authorized representative in Cyprus or assigned the management of the ship is fully assigned to a Cypriot or a Community company that operates in Cyprus. The corporation should be controlled by Cypriots or citizens of any other EU country if more than half of the shares are owned by Cypriots or citizens of any other EU country or when most of the Directors are EU citizens.
Types of Registration
There are 3 types of Ship Registration:
Forming a Shipping Company in Cyprus
First of all, the ship owners must establish a Shipping Company in Cyprus, registered as a limited liability private company. This company will then take the ship in its name.
The company’s documents (Memorandum and Articles of association) must be translated in Greek and it takes usually 7 days for the conclusion of the whole procedure. The Secretary of the company keeps the registers and the minute – books.
The offices of the law firm which has been entrusted with the whole procedure often serve as the company’s registered office when the company
• operates from fully fledged offices;
• uses a management company or affiliate on the island.
Economic Benefits of Registering a sea vessel in Cyprus
• Zero taxation on profits from the operation or the management of the ship or on dividends received from a shipping company.
• Zero taxation on capital gains by the sale or transfer of the ship or of the shares of the shipping.
• No estate duty on the inheritance of shares of the company owning the sea vessel.
• No stamp duty on ship mortgage deeds or other security documents.
• Cyprus’ has signed tax treaties with more than 40 countries, in order to protect shipping companies from double taxation.
• There is no exchange control and foreign currency circulates freely.
• Complete protection for financiers and mortgagees.
• Significantly lower costs for the establishment and operation of the company.
• Operation under the flag of a European Union State.
• Classification of Cyprus flag in the White List of the Paris and Tokyo MOUs, which means much fewer vessel inspections and considerably fewer delays at the ports of both MOUs.
• Maritime offices in several great sea ports, like New York, London, Rotterdam, Piraeus, Brussels and Hamburg, offer their services to sea vessels with Cypriot flags.
• In Cyprus there are trustworthy professionals with depth knowledge and experience on shipping & transportation services. Get now powerful and dedicated solutions for your shipping organization.
• There is a wide network of inspectors for sea vessels under the flag of Cyprus, operating in most of the international ports around the globe.
• Cyprus participates in all international maritime conventions regarding seafaring safety and the protection of the environment.
• Cyprus has signed bilateral agreements with almost 30 countries in the field of Merchant Shipping.
• Cyprus’ Department of Merchant Shipping offers numerous and excellent services.
If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in this contact form.
We will analyze your case and advice you on:
- What company structure suits you best,
- What is the best Tax solution(s) for your business,
- What Banking and cash flows arrangements available.
We will take you through a step by step process from A to Z in creating the perfect business in Cyprus.
Can’t wait any longer? Fill in the form and submit your inquiries make your first step and we will deal with the rest.
Become even more successful by working with accountants you can count on and be among the thousands that already did.
If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in the contact form below.
We will take you through a step by step process from A to Z in creating the perfect business structure in Cyprus.
Can’t wait any longer? Become even more successful by working with accountants you can count on and be among the thousands business that already did.