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Ship registration and mortgages FAQs

11 August 2015
1 What are the primal criteria for the eligibility of a ship in order to be registered under the Cyprus flag?

All vessels used in navigation and not propelled by oars are eligible for registration in Cyprus provided that they meet the age restrictions set out in the official government policy regulating the registration of old ships in the Cyprus Ships Register. Vessels under construction are registerable in Cyprus.

2 Who is eligible to apply for registration of a vessel in Cyprus?

A citizen of or a corporation or partnership established in Cyprus, the European Union, the European Economic Area (which includes Norway, Iceland and Liechtenstein), or even in a third country where its control or ownership vests in EU interests may apply to register a vessel under the Cyprus flag.

3 What are the documentary requirements for registration?

A Cypriot company is formed by the registration of the memorandum and articles of association with the Registrar of Companies, and the filing of the requisite company forms registering the appointment of directors, secretary and registered office.

4 Is dual registration and flagging out possible and what is the procedure?

Dual registration and flagging out are both possible in Cyprus. The basis for such types of registration is the bareboat chartering of a ship by the shipowner to the charterer, and on the condition that the respective laws of the underlying registry and of the bareboat registry, to explicitly permit dual registration, and to contain preventive covenants that matters relating to ownership, and to mortgages over the ship, shall be exclusively governed by the laws of the ships’ underlying register. The bareboat charterer must also undertake to maintain the same safety standards to the ship, even though the chosen bareboat register applies safety standards that are lower than those applied by the ships’ underlying register.

5 Who maintains the register of mortgages and what information does it contain?

The Register Book is entrusted by the Merchant Shipping (Registration of Ships, Sales and Mortgages) Law 1963, as amended, to the Registrar of Cypriot Ships, and contains a description of the ship, and of the particulars of mortgages registered thereon. As there are two forms of mortgages, the one securing a principal amount and interest, and the other securing a current account, the information that is entered in the Register consists of the name and address of the mortgagee, the date of the mortgage instrument, time of registering, the form of the registered mortgage and its ranking.

Please do not hesitate to contact us for further information at p.vorkas@vorkaslaw.com.cy or call +357 22518777.
Pantelis Vorkas
Tags:

registration in Cyprus, Cyprus Ships Register, Cyprus flag, shipowner, charterer, bareboat register