CYPRUS Trends and Developments Contributed by: Adam Montanios and Nicolas Montanios, Montanios & Montanios LLC
of the Cypriot shipping cluster. The central aim of this initiative is to centralise the provision of all government services associated with the shipping industry, and to enable the Shipping Deputy Ministry to deal with all shipping-related transactions, which were previously managed by different government departments or ministries. The first matter recently incorporated into this project relates to the immigration procedure needs of the overseas personnel of shipping companies based in Cyprus. Following special arrangements between the Shipping Deputy Ministry and the Ministry of Interior, all applica - tions for work permits or for registration of mem - bers of shipping companies can be submitted through (and obtained from) a newly formed office at the Shipping Deputy Ministry. The next pivotal step in the development of the “one-stop shipping centre” is its expansion into handling matters relating to the incorporation and administration of shipping limited liability companies (SLLCs) under the recently enacted law relating to the establishment and operation of such companies (see below). The ultimate aim is for other matters relating to the needs of shipping companies based in Cyprus (eg, tax office registration and social insurances matters) to eventually be consoli - dated and handled directly through the Shipping Deputy Ministry. SLLCs Following the efforts of the Shipping Deputy Ministry and the private shipping industry in Cyprus, a new law regulating the creation of the SLLC was enacted. This legal entity will only be used for the ownership and operation of a vessel registered under the Cyprus flag. The incorpora - tion of the SLLC and all its administration will be
done solely by the Shipping Deputy Ministry, as part of its one-stop shipping centre programme. Following the engagement of new personnel by the Shipping Deputy Ministry, the completion of the digitalisation programme for the SLLC and the publication of the notifications supplement - ing the new law, it is expected that the new SLLCs will be operational by the end of 2025. Centre of Arbitration and Mediation Following discussions between the Shipping Deputy Ministry, the Cyprus Shipping Chamber, the Cyprus Union of Shipowners, the Cyprus Bar Association and the Cyprus Arbitration and Mediation Centre, the framework for Cyprus to become a centre for the arbitration and media - tion of maritime disputes has been agreed and is being implemented. The first step towards this goal is the establishment of the Cyprus Maritime Arbitration Organisation, which is currently under way. Advisory Committees to the Shipping Deputy Minister The Shipping Deputy Ministry has recently estab - lished two high-level committees to assist the Deputy Minister in the development of Cyprus Shipping. The first, the Advisory Committee on Competi - tiveness and Quality Enhancement of the Cyprus Flag, consists of eight members, all of which are ship-owners who fly the Cyprus flag and have all been elected by fellow ship-owners. The second, the Advisory Committee on Com - petitiveness of the Cyprus Maritime Cluster, consists of ship-owners and leading shipping executives based in Cyprus, and was elected by the community of Cyprus-based shipping companies.
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