Doing business in the Maldives, especially as a foreigner, involves specific legal structures and approvals, largely governed by the Ministry of Economic Development and Trade.
Here is a comprehensive guide on how to approach doing business in the Maldives:
🗺️ 1. Determine Your Legal Structure (For Foreigners)
Foreign nationals cannot register a Sole Proprietorship in the Maldives. You must establish a formal business entity, typically one of the following:
- Limited Liability Company (LLC) / Private Limited Company:
- This is the most common form.
- Minimum of two shareholders is generally required for a new private limited company.
- Requires a minimum startup capital (e.g., MVR 2,000 or USD 130, though sector-specific minimums may apply).
- Allows for 100% foreign ownership in many sectors, but certain strategic sectors may have restrictions or require government approval.
- Requires at least one board director to be resident in the Maldives.
- Partnership:
- You can form a General Partnership or a Limited Liability Partnership.
- Foreign individuals can be partners, and there are typically no restrictions on the number of foreign partners.
- Requires the managing partner to be habitually resident in the Maldives.
- Re-registration of a Foreign Company (Branch Office):
- A foreign company can re-register its branch in the Maldives.
📋 2. Foreign Investment and Registration Process
The process for a foreign investor is typically a three-step procedure overseen by the Ministry of Economic Development and Trade (MED).
Step 1: Foreign Investment Approval
- You must obtain initial approval from the MED.
- Your chosen investment sector will be reviewed to see if it falls under the automatic approval route (meeting standard entry requirements) or requires a government approval route (for strategic or regulated sectors).
Step 2: Company or Partnership Registration
- Reserve a business name with the MED’s Business Registry. It must be unique and available.
- Prepare Incorporation Documents: This includes the Memorandum and Articles of Association.
- Submit the Application: File your registration application with the MED.
- Pay Registration Fees: Fees depend on the type of company and shared capital.
Step 3: Foreign Investment Agreement
- You must sign a Foreign Investment Agreement with the Government of Maldives (either the Ministry of Economic Development or the Ministry of Tourism, depending on the sector).
- This agreement will specify the period for which your investment approval is granted.
🔑 3. Key Investment Sectors
The Maldives economy is heavily driven by Tourism, but the government is encouraging investment in other areas. New foreign investment rules categorize business activities, with many sectors open to full foreign ownership.
| Sector | Opportunities | Ownership Notes |
| Tourism | Resort development (one-island-one-resort), Yacht marinas, Luxury accommodations, Eco-tourism, MICE. | 100% foreign ownership for Resorts/Hotels. Guesthouses are limited to a max 49% foreign shareholding. |
| Real Estate | Integrated tourism projects, Mixed housing, Luxury residential developments. | Generally high thresholds, with projects above a certain investment level being fully open. |
| Energy | Renewable energy generation (solar, wind), Waste management (e-waste recycling, wastewater treatment). | Generally 100% foreign ownership for renewable energy. |
| Services | Information & Communication Technology (ICT), Financial services, Higher education, Healthcare. | Many professional services (e.g., accounting, architecture) are open to joint ventures with foreign ownership capped (e.g., 49% – 75%). |
| Fisheries | Sustainable fisheries, Aquaculture/Mariculture (sea cucumbers), Premium fish exports, Fish processing facilities. |
Note: Certain sectors like domestic logistics, wholesale/retail trade (excluding franchising), and employment agencies are closed to new foreign investment.
💰 4. Taxation Overview
The Maldives Inland Revenue Authority (MIRA) is responsible for tax administration.
| Tax Type | Rate & Thresholds | Details |
| Corporate Income Tax | 0% for profits not exceeding MVR 500,000. 15% for profits exceeding MVR 500,000. Banks are taxed at 25%. | Tax residents are taxed on worldwide income; non-residents only on Maldives-sourced income. |
| Goods & Services Tax (GST) | Tourism Sector: 16% | General Sector: 8% |
| Non-Resident Withholding Tax | 10% | Imposed on specific payments made to non-residents (e.g., rent, royalty, interest, dividends). |
| Green Tax (Tourism) | USD 6 per tourist per day (Resorts, Vessels, Hotels). USD 3 per tourist per day (Guesthouses, smaller hotels). | Payable by tourists staying in tourist establishments. |
| Annual Fee | MVR 2,000 for Private Companies. | Required for all companies registered with the MED. |
📌 Final Steps and Recommendations
- Obtain Business Licenses: After registration, you must apply for any necessary operational licenses specific to your industry (e.g., a Tourism License from the Ministry of Tourism).
- Open a Bank Account: Open a corporate bank account in the company’s name.
- Hire Workforce: Be aware of regulations regarding the employment of local vs. expatriate workers.
Given the complexities of foreign investment approval, sector restrictions, and the requirement for a local resident director/managing partner, it is highly recommended to consult with a professional legal or business consulting firm in the Maldives.