On the 6th of October 2022, the House of Representatives unanimously passed the Limited Liability Shipping Company Law of 2022 (the “Law”).
The Law sets the ground for the establishment of a new type of legal entity, the Limited Liability Shipping Company (the “LLSC”). This new type of maritime entity will operate as a limited liability company, with its sole purpose being the ownership and operation Cyprus-registered vessels.
While these new LLSCs will still be compliant with the reporting requirements under the Companies Act, one thing that distinguishes them from the other types of legal entities registered in Cyprus is the fact that they will not fall under the Registrar of Companies. Instead, the Law appoints the Shipping Deputy Ministry (the “SDM”) as their competent authority, and more specifically, the newly formed Registrar of LLSCs.
Similar to how the Registrar of Companies acts for all matters concerning the other types of corporate entities, the newly introduced Registrar of LLSCs, will act as the competent authority for all the matters concerning the LLSCs.
Transferring all the LLSCs matters under one umbrella, the SDM aims in centralizing all the compliance aspects of a shipping company, thus simplifying many of the procedures and the operating regime of Cypriot shipping companies.
The primary goal of this is to create a unique, favorable legal framework that will act as a one-stop-shop for ship-owning entities. This is believed to provide the SDM with significant competitiveness on the services offered, as well as attract numerous international shipping companies to Cyprus, further improving the competitiveness of the country’s flag in international shipping.
How we can help:
At Royal Pine, we can assist you on any matter related to this new framework including the establishment and registration of your Limited Liability Shipping Company and/or the transfer of your registered Cypriot ship to the new LLSC Registry.
For further information, please contact your Royal Pine advisor.
* This publication has been prepared as a general guide and for information purposes only. It does not purport to be comprehensive or to render professional advice. Before making any decision or taking any action that may affect you and/or your business, bespoke advice should be obtained.