Cyprus passes law for shipping one-stop-shop framework

The Parliamentary Committee on Transport, Communications and Works, which examined the issue, says the purpose is to create a new type of corporate entity called a “shipping company of limited liability,” which will be established as a limited liability company with the sole purpose being the ownership and operation of Cypriot ships.

It is noted that the ultimate goal is to create a one-stop-shop framework for shipping companies and their shareholders at the Deputy Ministry of Shipping, so that, in addition to the aspects of maritime law, the ministry can handle all the issues that currently fall under the Registrar of Companies.

The Chairman of the House Committee on Transport, Marinos Moushiouttas, welcomed the adoption of the law ahead of Maritime Cyprus 2022 which is taking place from October 9 till October 12, in the country’s shipping capital of Limassol.

"The effort to create this limited company is not something new or recent, it has been going on for approximately 6-7 years," said Cyprus Shipping Deputy Minister, Vassilis Demetriades. "The reason for doing this is because of our overall efforts in Cyprus to make our shipping industry become faster, more efficient and more competitive," said the Minister.

The Minister said the reason why shipping should have its own company registrar, in contrast with other sectors, who must resort to the Department of Registrar of Companies and Intellectual Property, is clear. "The shipping industry is taxed differently. Shipping companies are under tonnage law. They are not subject to the same rules as other companies are under the Tax Department," said Demetriades.

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"This new initiative will allow us to create a new framework that will facilitate the creation of a one- stop-shop that will in turn helps us to attract a great deal of new international shipping companies to Cyprus. In addition, with this new framework in place, they will be able to find and receive many services they require under one umbrella," added the Minister.

Listen to Cyprus Shipping Deputy Minister, Vassilis Demetriades talk about the country's vision for shipping in a recent episode of the Seatrade Maritime Podcast

The Cyprus Maritime event got off to an early start as prior to it the Cyprus Shipping Chamber and the Cyprus Union of Shipowners, hosted a meeting of the Board of Directors of the European Community Shipowners’ Associations (ECSA). The 7 October meeting in Limassol was held under under the Presidency of Philippos Philis the Past President of the Cyprus Shipping Chamber.

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Main topics discussed during the board meeting, were the measures taken by the EU shipping industry to achieve the goal of zero emissions from ships by 2050 through a comprehensive climate strategy being prepared by ECSA. In addition, the organisation’s overall strategy was completed aiming to further strengthen its competitiveness and the representation of European shipowners’ interests toward EU policy makers.