A complete guide to maritime city approval in Dubai
What is maritime city approval
Dubai Maritime City (DMC) is one of the world’s top marine industry hubs. This city is a special free zone where the companies associated with maritime industry like shipbuilding, marine services, logistics, offshore engineering, and other related sectors operate. To start a business officially in this zone, you must get approval from the DMC authority, which is called the maritime city approval. This approval applies if you are starting a new business, renewing a license or modifying an existing license. The government needs to make sure that your business does not pose any risk to the location and aligns with Dubai’s vision for a sustainable maritime sector. You will not be able to operate your business activities without this approval. If you manage to get a maritime city approval, your company will gain benefits like 100% foreign ownership, exemption from export and import taxes and long-term lease options.
Businesses that need maritime city approval
- Shipbuilding and ship repair companies - These are companies that specialize in building, maintaining, and upgrading ships and boats.
- Marine engineering and offshore services - They support oil rigs, underwater structures, and technical marine operations.
- Logistics and cargo forwarding firms - These kinds of firms offer shipping, warehousing, and cargo management solutions.
- Maritime consultancies - These are consultancies that provide professional advice for safety, compliance, and project management.
- Boat and yacht manufacturers - They are associated with the manufacturing of luxurious and commercial marine ships.
- Marine equipment suppliers - They sell engines, navigation systems, safety gear, and spare parts.
- Maritime training and education centers - They offer courses related to the maritime sector like courses for sailors, marine engineers, and crew members.
- Environmental and marine waste management companies - They ensure clean, eco-friendly operations in the marine sector.
- Maritime law firms and classification societies - These are the firms to approach for legal support and technical certifications.
Why is maritime city approval required
The Dubai government needs to ensure that all the business operations in the maritime city are in compliance with the legal, environmental, and safety standards. Maritime city approval will not be provided to the firms that are not relevant to this industry. It also helps to prevent unqualified firms from setting up in the zone that would disrupt the operations or damage the reputation of the city. Without proper approval, businesses will face heavy fines or even closure of the organization.
Documents for maritime city approval
- Application form - This must be filled and signed with the accurate company details.
- Business plan - A brief explanation of your business activities, target clients, and goals.
- Valid passport copies of shareholders and managers - Your identity must be verified in order to get maritime city approval.
- Emirates ID and residence visa (if applicable) - This is required for UAE residents involved in the business.
- No objection certificate (NOC) - This must be produced if the applicant is a UAE visa holder and should be issued by the current sponsor or employer.
- Proof of initial approval or name reservation - This is the confirmation from the authority that your trade name is accepted.
- Memorandum of Association (MOA) - This means the company sets up documents for legal structure.
- Board resolution (for corporate shareholders) - This document approves the business setup under Dubai Maritime City.
- Tenancy contract or letter of intent - This is to confirm office or workspace within DMC.
- Specifically required approvals - If your firm deals with activities like environmental clearance, technical drawings, or health/safety permits, you will need those approvals before getting maritime city approval.
Steps for maritime city approval
Choose your business activityMaritime city allows businesses related to marine industry and so select an activity that fits within allowed maritime-related sectors.
Reserve your trade nameSubmit a name reservation request through the DMC authority.
Submit the initial applicationIn order to obtain maritime city approval submit the first application with basic details about your business and passport copies and a business plan.
Receive initial approvalWait until the authority reviews your application and gives preliminary clearance.
Secure office or facility spaceYou will have to sign a lease agreement within Dubai Maritime City as your workspace.
Submit legal company documentsSubmit documents like MOA, AOA, board resolution (if applicable), and shareholder agreements.
Get additional government approvals (if needed)If your company will deal with activities related to the environment, health or safety, you will need additional approvals other than maritime city approval.
Pay registration and licensing feesFees will vary based on license type, office size, and activities and no arrears in fee must remain.
Receive final approval and business licenseOnce all documents and payments are confirmed, your license will be issued.
Begin operations (or proceed with fit-out, if required)At this step you’re officially allowed to operate within Dubai Maritime City with a valid maritime city approval.
Time and costs for maritime city approval
Generally, the time for receiving maritime city approval depends on the type of business you are into. On an average, the whole process will take up to 2–4 weeks if all documents are properly submitted. But the costs will vary depending on the license type, number of shareholders, and office size. Usually, the fees start from around AED 15,000 to AED 25,000, including the registration, licensing, and admin charges. If your office space is on lease, additional office rental costs will be included. Visa related expenses also will come your way if you are applying for residence visas under your business license.
ConclusionSetting up a business in maritime has many advantages, but you may face challenges trying to get hands on a maritime city approval. Most of the time the issue is incomplete or incorrect documentation, choosing the wrong business activity, rejections from other departments and so on. At Bizvise, we offer these services without you having to undergo any kind of confusions or stress. Contact us to get the maritime city approval for your business as soon as possible.