Company Formation in the Maldives
Updated on Thursday 04th July 2024
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The mixed economy of Maldives is mainly based on tourism, shipping, fishing and agriculture and its industry is primarily built on handicrafts and boat construction. Due to all these factors, but also to its amazing landscapes, many foreign entrepreneurs choose to set up companies in the Maldives.
For further details on how to establish a legal entity in the Maldives, please seek counsel from our company formation experts. Our consultants have the necessary legal expertise to help investors with professional assistance on offshore company formation.
Legal structures in the Maldives
The first thing a foreign investor has to do is choose the type of company he wants to establish. Two of the possibilities are the limited liability company and the public limited company. The most popular one, however, is the limited liability company and these are the requirements to be met for its establishment:
- at least two 2 shareholders (of any nationality);
- a minimum capital of MVR 2000 (approximately $130);
- 100% foreign-ownership is allowed;
- membership is limited to maximum 50.
What steps should foreign investors take before starting a business in the Maldives?
Although foreign investors can open a company in the Maldives following the same procedures available for local investors, there are few differences applicable to foreigners. The main difference is that foreign businessmen must first apply for an approval for doing business in this country, which must be granted by the Ministry of Economic Development.
Regarding the registration with this institution, our team of consultants in company formation in the Maldives present you the following:
- it is necessary to pay a processing fee of USD 5,000 (paid to the Maldives Inland Revenue Authority);
- investors must prepare documentation that will be analyzed by the Ministry of Economic Development, which can be processed in general in around 3 business days;
- however, the processing of the documentation can take up to 14 days, provided that the institution may need additional documents;
- the law states that the maximum time required for the processing of the documents can’t be longer than 30 days.
How to register a company in the Maldives
The first step is choosing a name for the company you want to open in the Maldives. You first have to make sure of its uniqueness and reserve it. Then you must obtain the incorporation standard forms from the Registrar of Companies. The next phase of the company registration procedure is paying the registration fee.
Then you need to register with the Registrar of Companies and also apply for a TIN (Tax Identification Number). Our company formation agents will assist you with this procedure, by submitting the necessary papers for you, such as the name search approval form, the company registration application one, the acceptance letter from the Company Secretary or the copies of the members' IDs.
In order to open a company in the Maldives, the Companies Act also states that you have to make a seal for your company and then register it with the Registrar of Companies. This is also a procedure that our team can easily complete for you. The process of registering a company in the Maldives should take maximum two weeks to complete.
Registration requirements for a private limited company in the Maldives
In order to open a company in the Maldives as a private limited company (also referred to as a limited liability company), the steps mentioned above must also be concluded, as they are necessary for all corporate structures.
However, there are certain procedures and documentation that is specific only to this company type, as the registration must be done following the rules of the Companies Act (Law no. 10/96). Investors must prepare the Managing Director’s Declaration and the Company’s Secretary Declaration, along with a Form on the person who is appointed as tax agent.
Along with these documents, investors must submit the Articles of Association and the Memorandum, together with the identity documents of the directors, shareholders, company secretary and of the tax responsible person.
To this file, investors must prepare the Foreign Investment Approval, the document that must be obtained prior to starting the process of company incorporation in the Maldives. To this, it is also necessary to add the evidence of paying the processing fee (MVR 2,000).
The company must also have a corporate bank account. This requirement is available for all companies in the Maldives or those located elsewhere. This requirement is imposed in countries that allow offshore incorporation, where investors must set up an offshore bank account.
If you decide to establish a different type of legal structure in a different country, our team can assist you with all the procedures. Our specialists in company incorporation can assist and counsel foreign investors who are interested in forming companies in the Maldives, so please, do not hesitate to contact us.