The competent for keeping the Cyprus Aircraft Register is the Department of Civil Aviation (DCA).
The DCA is responsible for the registration, transfer and deletion of aircrafts under the Republic of Cyprus.
Registration of Aircraft
The registration of Aircraft in Cyprus is governed under Article 11 of the Civil Aviation Act of 2002-2008 as amended, which specifies the qualifications required to own an aircraft registered in Cyprus.
Persons wishing to register an aircraft in Cyprus, should submit an application on Form DCA 201 at least three weeks in advance, accompanied by the following documents:
(a) Evidence of qualification to be owner of aircraft as required under Article 11 of the Civil Aviation Act. of 2002-2008 as amended.
In the case of bodies corporate applying for the first time, a copy of:
- Certificate of Registration of the Company;
- Memorandum of Association and Articles of Association of the Company;
- Certificate of composition of the Board of Directors and a statement of their respective nationality;
- Company ́s Registered address certificate;
- Certificate of composition of the company ́s shareholders with details of the nationalityof shareholder and the number of shares owned.
(b) Certificate of ownership of the aircraft or Bill of Sale.
(c) Insurance Certificate against third party and Passenger liability covering loss, injury and damage to persons and property in accordance with European Regulation (EC) No. 785/2004 and Cyprus AICs C13/2005 and A03/2005.
(d) De-registration from State of previous registry (if applicable).
(e) Statement from the Department of Customs and Excise confirming that there are no outstanding issues regarding the aircraft (both with Customs and VAT).
(f) If the aircraft is on lease, a certified true copy of the lease agreement properly stamped by the Cyprus Government Commissioner of Stamp Duties.
(g) Official statement from the applicant stating the main place of business of the company and the usual base and area of operation of the aircraft.
(h) Aircraft Noise certificate
(i) ValidcertificateofAirworthinessinaccordancewitharticle16oftheCyprusCivilAviation Act. of 2002-2008 as amended.
A Certificate of Registration cannot be issued to an aircraft unless it is also issued with a Certificate of Airworthiness.
Qualifications for registration
1. Only aircraft which meet the following conditions can be entered in the Cyprus Aircraft Registry:
(a) aircraft not registered in a foreign registry;
(b) aircraft whose airworthiness is attested by certificate in accordance with Article 16 (certificate of airworthiness) or the renewal of said certificate in accordance with Article 16 (airworthiness inspection) paragraph 5;
(c) aircraft whose environmental compliance is attested by noise certification;
(d) aircraft whose owner with a stake greater than 50% or holder of the rights to acquire them or, in case of leasing of at least six months, the lessee or other such party entitled, is:
(aa) a natural person of Cypriot nationality, or a national of an EU or ECAA member state, even if not residing or staying in the Republic; or
(bb) a body corporate which –
– has been incorporated under the law of the Republic or the law of an EU or ECAA member state;
– has its registered office and main place of business in the territory of the Republic or the territory of an EU or ECAA member state;
and of which –
– more than 50% of the assets and capital are held by Cypriot nationals or nationals of EU or ECAA member states;
– the majority of those with power of attorney or personally liable are Cypriot nationals or nationals of EU or ECAA member states
2. In the event that the aircraft has its usual headquarters or area of operations abroad, and the owner or charterer thereof has neither residence nor office of operation in the Republic, the Minister shall be entitled to reject the application to register the aircraft in the Cyprus Aircraft Registry, or, depending on the case, to order the deletion of the aircraft from the Cyprus Aircraft Registry, if he should deem that under the circumstances, the aircraft should be registered in the registry of another country. Without prejudice to Article 10 (Cyprus Aircraft Registry) paragraph 2, for the rest.
3. Aircraft that does not meet one of the conditions of paragraph 1, may, by reasoned decision of the Minister, be exceptionally registered in the Cyprus Aircraft Registry.
4. The owner and operator of the aircraft shall apprise the Cyprus Aircraft Registry immediately of any and all changes in the above registry conditions.
The airworthiness certification of aircraft is governed under the Cyprus Civil Aviation Act of 2002-2008, as amended, and EASA regulations 1702/2003 and 2042/2003.
The aircraft owner must contact the Airworthiness Section of the DCA Safety Regulation Unit. An Airworthiness Inspector will be assigned and the relevant application forms will be sent to the owner. The assigned inspector will be in charge of the certification process and will be in continuous contact with the owner.
All aircraft coming onto the Cyprus Register should conform to an acceptable Type Certificate Standard.
For aircraft originating from outside the European Union, an airworthiness review must be carried out. The airworthiness review must be carried out by a Continuing Airworthiness Management Organisation. For aircraft of 2730kg MTOM and below the airworthiness review may be carried out by the DCA if it is requested by the owner.
For aircraft originating from a European Union Member State, copies of the certificates must be provided to the assigned Inspector. He will advise the owner of the process to be followed.
The owner must supply noise certification data for his aircraft as requested by the assigned Inspector.
The owner must provide copies of the following documents:
- Aircraft Flight Manual / Pilot Operating Handbook
- Maintenance Program
- Aircraft Log Books
- Maintenance / Service Manuals
The assigned Inspector will review all the submitted documents and physically survey the aircraft. The owner will be informed of any non-conformity and must take the necessary action.
For further information please send us an email or give us a call.Read More
Historical Background on Aviation in Cyprus
Due to the importance and development of air transport, the colonial Government of Cyprus established the Department of Civil Aviation in 1955. At that time, the responsibilities of the Department were the development and administration of Nicosia airport. The Department also had played an advisory role to the Governor for the development of air transport.
The colonial government’s air transport policy only concerned non-scheduled and charter flights, while approval all other flights was determined by the United Kingdom in accordance with its international obligations.
Cyprus became a member of the International Civil Aviation Organization (ICAO), an agency of the United Nations, shortly after its independence in February 1961.
ICAO has entrusted and delegated to the Department of Civil Aviation the responsibility to provide air traffic control services in a space of an area covering 175,000 square kilometers, which is several times the size of Cyprus.
As a result of the Turkish invasion in July 1974, the entire civil aviation infrastructure was either destroyed or occupied by Turkish troops. Specifically, the one and only airport of the island was shut down and handed over to United Nations forces. The airport is in the buffer zone now. The Area Control Center, which was residing at the airport, also discontinued operations and the telecommunications and facilities located in the Pentadaktylos Mountains were occupied by Turkish troops. For a period of six months Cyprus remained without air transport and was almost isolated from the rest of the world. In the meantime, it was decided that a new airport would have to commence operations at Larnaca using the abandoned airport of 1948.
In 1983 Pafos airport was inaugurated. The airport aimed primarily at serving the needs of the district of Pafos. Pafos airport has undoubtedly contributed positively and substantially to development of tourism in the district with beneficial effects on the overall economy of the country.
In 1986 the new Area Control Centre was inaugurated. This was equipped with radar and modern telecommunications systems and is located in the CYTA building in Acropolis.
The observed increase in numbers of passenger traffic at our airports, and the demand for air traffic control services, in our opinion, reflects two very basic and positive factors for our country. The first being the preference that the public has for Cyprus as a favourable holiday destination and service centre. With proper planning, Cyprus can maintain this favourable status. The other is related to the natural geographical advantage that Cyprus holds which can be exploited, positioning Cyprus as an emerging transit point for air travel.
After the accession of Cyprus to the European Union, the status of the operation of flights within the Union has been liberalized resulting in an increase in competition. Additionally, the creation of low-cost airlines and airline alliances as well as global recession have altered conditions in air transport and it is now necessary to ensure the best possible quality of factors of production: an efficient labour force, low cost capital, superior infrastructure.
Recognizing these imperatives, the Government has already advanced the modernization process of the Cypriot airports, Larnaca and Pafos. It has done this by selecting the private consortium Hermes Airports to undertake the construction and modernization of new facilities at both airports via the B.O.T. (Build, Operate, Transfer) method. As a result, the management of the above airports has been undertaken by the aforementioned consortium for a time span of 25 years ratified by an agreement that was signed on May 12, 2006. The consortium had temporarily taken over existing facilities after having made improvements to them, up until the completion of the project and construction of the new facilities.
The Hermes company completed the construction of the new facilities at Larnaca and Pafos under the general master plan prepared by the company ADP (Aeroport de Paris). The new Larnaca airport started operations in November 2009 and in the first phase it has the capacity to serve 7.5m. passengers per year. There is potential for further expansion and construction of a second parallel runway when this is deemed necessary. The new buildings of Pafos airport operated in November 2008 and have the ability to serve 2.7m. passengers per year.Read More
The European Aviation Safety Agency (EASA) is the centrepiece of the European Union’s strategy for aviation safety. Its mission is to promote the highest common standards of safety and environmental protection in civil aviation. The Agency develops common safety and environmental rules at the European level which are implemented by the Member States. It monitors the implementation of standards through inspections in the Member States and provides the necessary technical expertise, training and research. The Agency works hand in hand with the national authorities which continue to carry out many operational tasks, such as certification of individual aircraft or licensing of pilots.
The Republic of Cyprus follows and implements all laws and regulations passed by the European Aviation Safety Agency.Read More
How much does it cost to register and maintain a Cyprus company?
One of the principal question clients ask before deciding in which jurisdiction to set up their business is the cost of registration and running of a company.
This article focuses solemnly in the Jurisdiction of Cyprus.
The fees involved when setting up a Cyprus company:
- The registration or set up fee
- The annual fees for nominee services
- The accounting & auditing fee
- The annual expenses payable to the Registrar of Companies
1. The registration or set up fee
Our fees for incorporating a Cyprus company start at €1.500 plus 19% VAT if applicable. These fees include the incorporation costs and certified documents issued by the Registrar of Companies (ROC).
2. The annual fees for nominee services
Annual fees include the fees for the services of nominees, secretary and registered office. We advise all clients that are abroad to appoint our law firm as your secretary as we will be able to make any changes in the ROC on your behalf in a very timely and cost-effective manner. Fees available upon request.
3. The accounting & auditing fees
It is compulsory to have hire Accounting & auditing services for your company. The fees for such services vary substantially depending on the following factors:
- the number of transactions the company executes each month/year
- the size of the firm you decide to hire
A Cyprus company needs to register with the Inland Revenue Office and get a tax number. From then on it has to file audited accounts every year and pay tax, if appropriate.
Some companies are also registered with the VAT Department and get a VAT number. In such case, they have to file VAT return every three months.
Auditing & Income Tax (preparation of IR4) fees start at €1.500 plus VAT per year. Moreover, if the company wishes to outsource the accounting, payroll and VAT services fees start at €250 per month.
Please note that the above fees vary and increase depending on the requirements of each company.
4. The annual levy payable to the ROC
Each year a company has to file an annual return (annual report) with the ROC known as HE 32 which records the changes that took place in the company during the year. With this report the financial accounts of the company and all relevant minutes of the company need to be submitted at the ROC.
Our fees for the preparation and submission of annual report to the ROC is €180 plus VAT.
Special Government Levy
All companies registered in the Republic of Cyprus must pay at the ROC an annual levy of €350. For companies that fall within a group the total amount is capped at €20.000. Non-compliance may result in penalties and eventually striking off.
If you want to open a corporate bank account or require other administrative or legal services these shall be agreed separately.
All companies registered in the Republic of Cyprus must pay at the Registrar of Companies an annual levy of €350. For companies that fall within a group the total amount is capped at €20.000.
As of 1st February 2013, the levy is payable as follows:
- The annual levy on companies dormant or not is payable as of the year of incorporation. Exempt are only companies under liquidation or winding up.
- The annual levy must be paid no later than 30thJune of each relevant year;
- Failure to pay the annual levyby 30th June shall have the following penalties:
– For a delay of up to 2 months – a 10% penalty;
– For a delay between 2 and 5 months – a 30% penalty.
- Non-payment of the levy shall be given notice of strike off by the Registrar of companies and in the event of non-compliance the registrar will proceed with deregistering the company.
- Reinstatement fees from its strike off has a penalty of €500 (in addition to the outstanding amount of the levy) is imposed and €750 where a company is re-instated after the two-year period.
The Schengen Agreement signifies a zone where the European nations acknowledged the abolishment of their internal borders with other member nations allowing the free and unrestricted movement of people, goods and services within common rules. The Schengen visa is a short stay visa allowing its holder to travel within the 26 countries (“Schengen States”) without border controls between each other.
The countries are:
Azores, Madeira, and the Canary Islandsare special members of the European Union and part of the Schengen Area, despite the fact that they are located outside the European continent.
Monaco, San Marino, and Vatican Cityhave opened their borders with but are not members of the Schengen Area.
Cyprus, Croatia, Romania, Bulgaria, Ireland and the United Kingdomare European Union members, that have not yet joined Schengen Area that are required to and are opting to join soon.
With A Schengen visa the holder is entitled the following:
– Tranvel or stay for a period not exciding 90 days in any 180 days period (“short stay visa”),
– transit through the international transit areas of airports of the Schengen States (“airport transit visa”).Read More
The Online Dispute Resolution (ODR) platform, developed by the European Commission, offers a single point of entry that allows EU consumers and traders to settle their disputes for both domestic and cross-border online purchases.
This is done by channelling the disputes to national Alternative Dispute Resolution (ADR) bodies that are connected to the platform and have been selected by the Member States based on quality criteria and notified to the European Commission.
Online dispute resolution (ODR) is a branch of dispute resolution which uses technology to facilitate the resolution of disputes between parties. It primarily involves negotiation, mediation or arbitration, or a combination of all three. In this respect it is often seen as being the online equivalent of alternative dispute resolution (ADR). However, ODR can also augment these traditional means of resolving disputes by applying innovative techniques and online technologies to the process.
ODR can be applied in a wide range of disputes; from interpersonal disputes including consumer to consumer disputes (C2C); to court disputes and interstate conflicts. While the application of ODR is not limited to disputes arising out of business to consumer (B2C) online transactions, it is particularly apt for these disputes, since it uses the same medium (internet) for the resolution of e-commerce disputes which is greatly efficient in situations where the parties are interstate.
- The platform is user-friendly and Consumers can fill out the complaint form on the platform in three simple steps.
- The platform offers users the possibility to conduct the entire resolution procedure online.
- The platform is multilingual. A translation service is available on the platform to assist disputes involving parties based in different European countries.
- Dispute threshold to 5.000 Euro.
- Resolution within 90 days.
Background to ODR
The legal basis for the establishment of the Online Dispute Resolution platform is the Regulation of consumer Online Dispute Resolution, which describes the main functions of the platform as well as the workflow for a dispute that is submitted through the platform. The Regulation builds upon the Directive on consumer Alternative Dispute Resolution, which ensures that consumers have access to Alternative Dispute Resolution when resolving their contractual disputes with traders.
Access to Alternative Dispute Resolution is possible irrespective of whether the product or service was purchased online or whether the trader is established in the consumer’s Member State.
Member States establish national lists of bodies offering Alternative Dispute Resolution procedures (ADR bodies). All Alternative Dispute Resolution bodies included in those lists comply with binding quality requirements set by the EU legislation.
Dispute Resolution body in Cyprus
Competition and Consumer Protection Service
Email address: firstname.lastname@example.org
To enter the Europeans Commission’s website click here
TONNAGE TAX RATES FOR QUALIFYING
OWNERS AND CHARTERERS OF CYPRUS AND FOREIGN SHIPS
per 100 NT
per 100 NT
per 100 NT
per 100 NT
per 100 NT
Any residual tonnage of less than 100 units of net tonnage shall be charged proportionally.
Sample calculation of the annual tonnage tax for a 19.538 net tonnage vessel:
|1.000 NT : 1.000/100 = 10 x € 36,50 =||€ 365,00|
|9.000 NT : 9.000/100 = 90 x € 31,03 =||€ 2.792,70|
|9.500 NT : 9.500/100 = 95 x € 20,08 =||€ 1.907,60|
|8 NT: 38/100= 0,38 x € 20,08 =||€ 7,63|
|Annual tonnage tax due =||€ 5.072,93|
TONNAGE TAX RATES FOR QUALIFYING
SHIP MANAGERS OF CYPRUS AND FOREIGN SHIPS
per 400 NT
per 400 NT
per 400 NT
per 400 NT
per 400 NT
Any residual tonnage of less than 400 units of net tonnage shall be charged proportionally.
Sample calculation of the annual tonnage tax for a 19.538 net tonnage vessel:
|1.000 NT : 1.000/400 = 2.5 x € 36,50 =||€ 91,25|
|9.000 NT : 9.000/100 = 22.5 x € 31,03 =||€ 698,17|
|9.500 NT : 9.500/100 = 23.75 x € 20,08 =||€ 476,90|
|8 NT: 38/100= 0,095 x € 20,08 =||€ 1,90|
|Annual tonnage tax due =||€ 1.268,22|
We would like to bring to your attention that the second instalment and final tax instalment for the year 2017 is due by 31st December 2017 which is based on the provisional income tax return submitted by the 31st July 2017.
Estimated taxable income can be revised any time prior to 31st of December of the current tax year. Any revised tax amounts are being equally apportioned over the two instalments, thus attracting interest at the rate of 3,5% per annum on the 1st instalm
Please note that:
- Non-payment on the due dates entails payment of interest at the rate of 3,5% per annum. In addition, there is a 5% fine for late payment of temporary tax.
- If the provisional declaration in less than 75% of the final tax assessment the taxpayer must pay, in addition to the normal tax, an amount equal to 10% of the difference between the final and the temporary tax.
- Tax paid which is in excess as per the chargeable income assessment of the Commissioner of Taxation will be refunded with interest of 3.5% per annum as from 1st January 2017.
- Where no taxable income arises, there is no requirement to submit the temporary tax return.
The temporary tax can also be paid electronically via JCC Smart
Please contact us in order to make all necessary arrangements for the filing of the returns on time and prompt payment of the relevant tax.Read More
CAPITAL REDUCTION BY WAY OF REDUCING SHARE CAPITAL OR SHARE PREMIUM OF A CYPRUS COMPANY LIMITED BY SHARES
It is a fundamental principle of law that a company limited by shares should only in limited circumstances reduce its share capital. This principle derives from the need to protect third parties such as creditors against the risk that the company’s assets could be transferred and/or removed depriving them of their security over the debts. In order to safeguard such risks a reduction is only feasible subject to the approval by the appropriate District Court in the Republic if certain requirements are met.
A Company registered in the Republic of Cyprus can is if so authorised by its Articles, reduce its share capital by way of special resolution to:
• Either with or without extinguishing or reducing liability on any of its shares, cancel any paid-up share capital which is lost or unrepresented by available assets; or
• Either with or without extinguishing or reducing liability on any of its shares, pay off any paid-up share capital which is in excess of the wants of the company; or
• Cancel paid up share capital for the purpose of writing off losses of the company; or
• Cancel paid up share capital by the creation of a reserve, to be called “the capital reduction reserve fund”
Reasons & Benefits for a reduction of share capital
Once a company reduces its capital the reserves arising from a reduction are treated as realised profit and are distributable immediately. This is a relatively simple way for private companies to create a distributable reserve which can be used for the following reasons:
• To eliminate a deficit on the company’s profit and loss account and thereby enable the company to pay dividends
• To return excess capital to the shareholders
• A means of paying cash to shareholders where the company does not have sufficient distributable reserves to pay a dividend.
• The capital reduction proceeds can be used for conversion of non-distributable reserves to distributable reserves and reduce accumulated losses.
• It may lead to the return of any surplus capital to shareholders
• The procedure can also be used to simplify the capital structure of the company by eliminating certain classes of shares which have no valuable rights attached to them.
A Share Capital reduction is effective subject to confirmation by the Court. The Court may require the company to show that no third parties are affected negatively by this reduction, and if so their consent shall be required. The Court may further request a publication to be made to give any third party the opportunity to file an objection to such a reduction.The procedure is mapped out as follows:
1. Passing a Shareholders special resolution approving the reduction of the share capital of the company with a right to vote majority of at least 75%.
2. If the company has creditors, such consents will have to be obtained and submitted with the court application as appendix.
3. Obtaining the courts consent and judgement.
4. Submitting relevant documents to the Registrar of Companies to finalise the reduction and obtaining relevant certificate.
Effective date of reduction of Share Capital
The reduction of the share capital will have no effect unless and until step (3) above takes place and the necessary filing is made to the Cyprus Registrar of Companies (s.67 (2) of the Law).Read More