The Limited Liability Shipping Company Law (the ‘Law’) was approved by the Cyprus Parliament on 6 October 2022, enabling the formation of a Limited Liability Shipping Company (LLSC). The activity of such a company is strictly restricted to ownership and operation of Cyprus ships.
The Law provides a Register of LLSCs to be created which will be supervised by the Deputy Ministry of Shipping, which will be acting as the Registrar of LLCS, in addition to its current role as the Registrar of Cyprus Ships. The Law also regulates issues relating to LLSCs, from their establishment to their liquidation and includes provisions, which confer to the Registrar of LLSCs the power to approve the use of electronic signatures, as well as the power to impose administrative fines.
Existing companies, which own Cyprus vessels and are registered in the records of the Registrar of Companies will be able to request to be transferred to the new register for LLSCs, subject to conditions.
The Law is part of a plan for creation of a One-Stop-Shop for the shipping industry in Cyprus, the popularity of which is constantly increasing. Although it is based on the Cyprus Companies’ Law, it contains simpler provisions on certain areas, such as incorporation, amendment of the Memorandum and Articles of Association, reduction of share capital, etc. in order to further enhance that popularity.