On 6th of October 2022 the Cypriot House of Representatives approved the “Law on the Shipping Limited Liability Company of 2022” (the “SLLC Law”).
This SLLC Law is one of the steps taken towards the implementation of the long-term national strategy for Cyprus Shipping or otherwise known as “Sea Change 2030”.
Its objective
The ultimate purpose of this new legislation is to create a new type of corporate entity called “Shipping Limited Liability Company (SLLC)”, which will be established as a limited liability company with the sole purpose of owning and operating Cypriot ships providing one-stop-shop framework for ship-owning companies and their shareholders.
The new Legislation is inspired by the basic provisions of the Companies Law, Cap 113, and in order to make SLLC more flexible and attractive, it includes provisions aimed at simplifying various procedures and increases the competitiveness of the Cyprus flag in international shipping, while at the same time offers a simplified legal framework, procedure and operating regime of Cypriot shipping companies.
The key element is that a separate company is created, which is not subject to the Companies Law, Cap 113 under the supervision of the Cyprus Shipping Deputy Ministry and not the Registrar of Cyprus Companies.
Main differences between the SLLC Law and the Companies Law
-The secretary of the SLLC must be a Lawyer
-The reduction of the shared capital of the SLLC can be accomplished without the obtainment of a court order, in contrast to the requirements for limited liability companies.
-The amendment of the memorandum of the SLLC does not require a court order, in contrast to the requirements for limited liability companies, and can only be amended to reflect the increase or reduction of the SLLC’s share capital.
Further guidelines will be given by the Cyprus Council of Ministers in due course.
Our Team is able to offer you legal advice and assistance for any matters related to this newly introduced legal framework in respect of the establishment and registration of a SLLC, as well as the continuation of a limited liability company which is currently registered at the records of the Registrar of Cyprus Companies as a SLLC.
by Marileni Papadopoulou
Disclaimer
Please note that this newsletter is produced for clearly informative purposes and under no circumstance shall be construed as professional advice.
For tailored legal services please contact our team at info@paplaw.com.cy.