The Maldives, renowned for its pristine beaches and booming luxury tourism industry, is an increasingly attractive destination for business ventures.
Its tax-friendly environment and high quality of life offer compelling reasons for entrepreneurs to consider setting up shop in this island paradise. The Maldives offers zero income tax and no social welfare benefits,
which is advantageous for businesses with low overhead costs or high growth potential.
Additionally, the country’s relaxed lifestyle and demand for talented employees make it an ideal location for those looking to combine work and leisure seamlessly.
However, while the allure of the Maldives is undeniable, the process of registering a business there is complex and can be daunting. Here’s a detailed look at what’s involved.
To register a private limited company in the Maldives, businesses must comply with the Companies Act (Law number 10/96) and register with the Ministry of Economic Development.
The first step in this process is securing a Name Reservation.
Applications are made through an Efaas account, directing users to the oneGov homepage. Key documents required include declarations from the Managing Director and Company Secretary, information forms for tax-responsible persons, and copies of national identity cards for directors, shareholders, and authorised signatories.
If shareholders are companies, additional documents like board resolutions and notarized certificates of incorporation are needed. Foreign shareholders require Foreign Investment Approval and passport copies.
Once all documents are submitted, applicants receive notifications about the status of their application. Approval leads to payment instructions, after which registration documents such as the Certificate of Registration and Corporate Profile Sheet become available for download. Fees include a registration fee based on authorised share capital and annual fees (MVR 2,000 for private companies and MVR 10,000 for public companies).
The entire process is designed to be completed within a business day, provided all documents are in order.
Given the intricacies of this registration process, specialised resource outsourcing companies can be invaluable. These firms can take the whole Admin and HR burden off foreign companies through services such as Employer of Record (EOR).
They ensure that all legal requirements are met promptly, saving businesses time and reducing the risk of errors that could cause delays. Additionally, outsourcing companies can offer ongoing support, such as handling annual fee payments and maintaining compliance with local regulations,
allowing businesses to focus on their core activities.