Call me
Login
Search
: Home : Business Sectors : Ship Registration & Shipping Companies
 

Ship Register and Shipping Companies

Madeira's IBC Ship Register Icon

The International Shipping Register of Madeira – MAR is Portugal’s second and international shipping register, created to reduce the country’s “flagging out” process as well as to attract new shipowners and vessels.
 
MAR, as a Portuguese register, is among the international registers of the highest quality, having guaranteed adequate measures to ensure an efficient surveillance of all vessels registered. All international conventions ratified by Portugal are fully applicable to and respected by MAR. As a result, MAR has never been considered as a “flag of convenience” and is included in the White List of the Paris Memorandum of Understanding.
 
With the exception of fishing vessels, MAR accepts the registration of all types of commercial vessels, including oil rig platforms, as well as commercial and pleasure yachts. 
 
Madeira’s Register also offers a very competitive tax regime, applicable to both vessels and shipping companies licensed within the legal framework of the International Business Centre of Madeira.

For the convenience of our clients, the process of provisional registration of a vessel in MAR may now be initiated on-line.
 
Show

Ship Register Operational and Tax Advantages

MAR offers specific operational advantages as well as a very attractive tax regime which will be applicable to both vessels and shipping companies formed in the IBC of Madeira, summarized hereinafter:

Vessels

  • Full access to European continental and island cabotage as a result of MAR's status as a E.U. Register;
 
  • Recognition by all the relevant international maritime organizations of the quality associated to MAR, namely the fact that it is included in the White List of the Paris MOU. Vessels registered in MAR, as a result, are not targeted for inspection by Port State authorities;
 
  • A very competitive social security regime that exempts shipping companies with vessels registered in MAR and their respective crew from contributing to the Portuguese social security regime. However, some form of insurance must be guaranteed and the crew may choose the Portuguese voluntary social security regime or any other type of protection scheme; 
 
  • The wages of the crew of commercial vessels and yachts registered in MAR are also exempt from personal income tax, according to the tax regime of the IBC of Madeira;
 
  • A very flexible and competitive mortgage system applies, allowing the mortgagor and the mortgagee to choose, by written agreement, the legal system of a particular country that shall govern the terms of the mortgage. In the lack of an agreement, the Portuguese mortgage law shall be applicable.
 

Shipping companies



 
  • Vessels registered in Madeira may be owned and managed by a company based abroad, not being mandatory to incorporate a company in Madeira’s IBC in order to proceed with the registration of a ship. In this case, a legal representative in Madeira must be nominated with sufficient powers to assure full representation before the State and the Regional authorities.
Print topic
 
Show

Entities Involved in the Registration Process

The Technical Commission of MAR
 

MAR has a Technical Commission (TC) made up by a President, directly appointed by the Portuguese Ministry of Transportation, a representative of the Madeira Autonomous Region and a representative of the IPTM – The Portuguese Institute for Ports and Maritime Transportation. 
 
The duties of the TC include the registration process and to assure that all registered vessels abide by all the safety requirements established by the applicable international conventions. 
 
The TC is also responsible for the establishment of the crew composition and for the submission of the ship registration files to the private Commercial Registry of the IBC of Madeira for the definitive commercial registration of the vessel. 
 
The TC shall co-ordinate with the Portuguese Institute for Ports and Maritime Transportation (IPTM) the control and inspection of technical aspects relating to the ships registered in MAR, with reference to the safety of navigation, Safety of Life at Sea, Prevention of Marine Pollution, seafarers working conditions and their standards of training.
 
The maritime background and technical expertise of all members of the TC assures the full understanding of the maritime transportation business and the implementation of fast procedures.
 
The offices of the TC are open from Monday to Friday from 09:00 to 17:30 GMT +1 (summer time from 29 March to 25 October). For after hours emergency calls, the TC may be reached through mobile numbers 00 351 965011917 or 00 351 926792374. 
 

IPTM – Instituto Portuário e dos Transportes Marítimos
 

IPTM – The Portuguese Institute for Ports and Maritime Transportation is the Portuguese authority responsible for the supervision, regulation and inspection of the maritime sector, as well as for the management and administration of the ports under its jurisdiction.
 
The Technical Commission of MAR works in close cooperation with IPTM in what regards the recognition of crew competency certificates, as well as on the carrying out of surveys to vessels registered in MAR.
 

The role of S.D.M.
 

Amongst other responsibilities, S.D.M. – Sociedade de Desenvolvimento da Madeira, S.A. is responsible for the promotion and administration of the International Shipping Register of Madeira – MAR.  
 
The licensing process for the incorporation of shipping companies within the legal framework of the IBC of Madeira is carried out through S.D.M., which will issue the respective licence after authorization granted by the Regional Government of Madeira. S.D.M. is also responsible for collecting the fees due to the Regional Government of Madeira by companies licensed in the IBC of Madeira and vessels registered in MAR. 
 
In addition, institutional and operational support is provided by S.D.M. by acting as a one-stop-shop and intermediary between the companies and shipowners and all the relevant local entities. A network of representative offices around the world has been established, providing support since the early stages of the registration of vessels and yachts in MAR or company incorporation in the IBC of Madeira. 
 
Print topic
 
Show

Registration Formalities

Permanent Registration


Various documents and information on the vessel must be submitted to MAR’s Technical Commission for analysis and initiation of the registration process, including the following:
 
  • Owner and/ or operator’s contracts, mortgages or other liens relating to the vessel; 
  • Purchase certificate of the vessel (bill of sale);
  • Vessel’s name and two other alternative names;
  • Application for the attribution of a call sign, as well as description of communication equipment; 
  • Certified copy of the register Tonnage Certificate; 
  • Name of classification society; 
  • Vessel’s characteristics and propulsion system;
  • Shipyard and year of construction;
  • Copies of the vessel’s certificates including those of the classification society;
  • Copy of the ship Station Licence;
  • Tonnage measurement data.
 
The Technical Commission of MAR will decide, according to the ship’s records, age and detention history, if a survey will be carried out before registration. A survey is also carried out in the absence of a transcript of registry (from any previous registration) or a Deletion certificate. 
 
The registration process is exempt from any form of taxation. The Private Commercial Registry of Madeira’s International Business Centre will be used for such purpose.
 

Temporary Registration
 

Temporary registration in MAR (bareboat charter in) is subject to authorization granted by the owners and by the competent authorities of the country where the vessel is permanently registered. Although Portuguese law allows the bareboat registration for five (5) years maximum, MAR can make the registration for five (5) plus another five (5) years (5+5), if agreed by the parties. 
 
The application form shall be addressed to the Technical Commission with indication of the charter period.
 
On the absence of a request by the charterer to renew the registration, near the expiry date of the charter period MAR will automatically consider such registration deleted.
 
On the other hand, if the charter period is still ruling, but the parties wish to delete the registration, they can do so by signing an addendum to the bareboat charter, where both parties agree to delete such registration.
 
Vessels with permanent registration in MAR may be temporarily registered in other countries (bareboat charter out). In such cases, authorization for the bareboat charter out will be granted by MAR. The vessel will fly that Registry’s flag and the right to fly the Portuguese flag will be suspended until the end of the charter period.
 
The application form shall be addressed to the Technical Commission of the International Shipping Register of Madeira – MAR requesting the temporary registration of the vessel under another flag.

You may now start the process of