{"id":10478,"date":"2023-09-18T14:46:22","date_gmt":"2023-09-18T11:46:22","guid":{"rendered":"https:\/\/fzmayuxbif.wpdns.site\/?p=10478"},"modified":"2023-11-02T14:54:41","modified_gmt":"2023-11-02T12:54:41","slug":"the-shipping-limited-liability-company-law-of-2022-opportunities-and-challenges","status":"publish","type":"post","link":"https:\/\/www.kyprianou.com\/he\/the-shipping-limited-liability-company-law-of-2022-opportunities-and-challenges\/","title":{"rendered":"The Shipping Limited Liability Company Law of 2022: Opportunities and challenges"},"content":{"rendered":"

Cyprus is one of the few shipping centres worldwide which combines an international registry of recognised prestige and quality, as well as a shipping complex with a wide range of shipping and related services, as mentioned by the Shipping Deputy Minister. Despite the challenges, it has shown resilience and remains the EU\u2019s third largest fleet and eleventh globally. Remarkably, in 2023, the Cyprus Register of Ships achieved an impressive rise from 13th<\/sup>\u00a0place in 2022 to 8th<\/sup>\u00a0place in the Paris MoU White List, a list representing quality flags with a consistently low detention history. This proves that the Cyprus Register of Ships maintains high quality and safety standards for ships flying the Cyprus flag.<\/p>\n

The Cyprus Shipping Deputy Ministry (SDM) has contributed tremendously to this success making significant progress since its inception. It prioritises the Cyprus flag\u2019s progress and supports the European maritime industry\u2019s development by advancing new green technologies, creating opportunities for jobs and growth, and providing a first-mover advantage to the EU shipping industry.<\/p>\n

The \u201cSEA Change 2030\u201d\u00a0long-term strategy, being the outcome of a collaborative process, with input from internal, local and international stakeholders, was created by the SDM as part of this evolving process. It contains 35 individual actions to deliver sustainable progress for shipping categorised under three main pillars: Sustainable, Extrovert, and Adaptable. The strategy aims to improve the Cyprus flag\u2019s competitiveness in international shipping, and to simplify the procedures and the operating regime of Cypriot shipping companies owning Cyprus-flagged vessels.<\/p>\n

The recently introduced "Shipping Limited Liability Company Law<\/em>" of 2022 (the "SLLC Law<\/strong>") is amongst the steps taken towards the implementation of the \u201cSEA Change 2030<\/em>\u201d. Its enactment has been a significant milestone to corporate and maritime law. SLLC Law\u2019s structure is inspired by the Companies Law (Cap.113). Through provisions aiming to simplify various procedures and aspects, the intention is to make the establishment of a shipping limited liability company more flexible and attractive to interested parties.<\/p>\n

The SLLC Law was enacted to create a new form of limited liability company, the "Shipping Limited Liability Company<\/em>" (SLLC) having as sole purpose to own and operate Cyprus-flagged vessels. The SLLC Law regulates the procedure from the setting up and registration of the SLLCs to their liquidation. It also establishes the Department of the SDM as the competent authority relating to the SLLCs. The department will be supervised by the SDM, while the SDM\u2019s General Director, who by law is also the Registrar of Cyprus-flagged vessels, will also act as the SLLCs\u2019 Registrar. The aim is to create a one-stop-shop framework for ship-owning companies and their shareholders within the SDM. Consequently, the SDM will deal with all matters currently falling within the competence of the Cyprus Registrar of Companies along with all the aspects of maritime law.<\/p>\n

The SLLC Law empowers current Cyprus-registered shipping companies that own Cyprus-flagged vessels to request their transfer to the SLLCs\u2019 Registry, subject to specific conditions. Importantly, a significant difference with the Companies Law is the requirement for SLLCs\u2019 secretary to be a lawyer and to effectively perform such duties pursuant to the provisions of the SLLC Law.<\/p>\n

The SLLC Law\u2019s enactment has been undoubtedly very promising, signalling the beginning of a new era for Cyprus corporate and maritime law. However, the delay in its actual implementation may have been perceived as a preventive factor for shipowners who wished to have their companies transferred under this new SLLCs\u2019 Registrar. This necessitates prompt actions to be taken for the actual implementation of the new legislation by the creation of the SLLCs\u2019 Registrar for effecting the transferring of the current Cyprus-registered shipping entities under the said registry and new SLLCs\u2019 registration.<\/p>\n

This article first appeared in the Maritime Cyprus Edition of\u00a0GOLD magazine<\/a><\/strong>\u00a0on 17.09.2023.<\/p>\n

The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Ioanna Solomou, Partner, Limassol office, T<\/em>el +357 25363685 or email\u00a0<\/em>Ioanna.solomou@kyprianou.com<\/em><\/a>\u00a0<\/em>and Andria Kouloumi, Associate, Limassol office, Tel +357 25363685 or email<\/em>\u00a0<\/em>andria.kouloumi@kyprianou.com<\/em><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Cyprus is one of the few shipping centres worldwide which combines an international registry of recognised prestige and quality, as well as a shipping complex with a wide range of shipping and related services, as mentioned by the Shipping Deputy Minister. Despite the challenges, it has shown resilience and remains the EU\u2019s third largest fleet […]<\/p>\n","protected":false},"author":12,"featured_media":10487,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"The Shipping Limited Liability Company Law of 2022: Opportunities and challenges","_seopress_titles_desc":"The recently introduced "Shipping Limited Liability Company Law" was enacted to create a new form of limited liability company, the "Shipping Limited Liability Company" (SLLC) having as sole purpose to own and operate Cyprus-flagged 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