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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.