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Foreign Business Registration Procedure

How to register a Foreign Investment as a Company or Partnership

Procedure

STEP 1 

Seek approval for Foreign Investments from the Ministry of Economic Development. You are required to submit the following documents.

  1. A completed Foreign Investment Application Form
  2. Names, permanent addresses, passport / ID copies of each individual shareholder and director of the investing entity. (If any of the shareholding of the investing entity is a legal entity, other than a public company, the names, permanent addresses and passport / ID copies of that legal entity is required)
  3. A reference letter from a reputable bank on each shareholder (both individual and legal entity)
  4. If the shareholder of the proposed investing company is a legal entity, Resolutions of the Board of Directors confirming their decision to invest in the Maldives as per the proposed ownership structure
  5. Projected Business Plan and Feasibility Study

(a)      Details of the proposed investment, including the main activities of the proposed company.

(b)      Five year projected balance sheet, profit and loss account and cash flow statements for the proposed investment, including all the assumptions made in the financial projections.

(c)      Financing plan for the proposed investment including details of equity, debt etc.

(d)      A phasing plan for investment, detailing the proposed phasing of capital/infrastructure investments (if any)

(e)      Proposed Human Resource Plan, including projected wages and benefits for employees, and foreign labor replacement plan (if the investing company plans to employ foreign labor in its operations, initially)

(f)      Feasibility indicators, including NPV, IRR, Payback period

  1. Letter of Authority or Power of Attorney for Contact Person (if any)
  2. Name Search Application Form (name should be reserved prior to submission)

NOTE: The documents are available in the Resource page for download.

STEP 2

If the foreign investment approval is granted, we will proceed to the company/Partnership registration process, you will be instructed to submit the other relevant following documents

  1. Company Registration Application Form
  2. Articles and Memorandum of Association of the entity proposing to undertake the investment (2 Originals)
  3. Acceptance letters from Managing Director and Secretary, accepting the post, including their passport / ID copies
  4. If the foreign shareholder is a company, copy of Memorandum and Articles of Association, and copy of Company Registration Certificate, notarized as a true copy
  5. Address of the resident director(s) of the entity, along with VISA copy (If the proposed investing entity is a 100% foreign entity, at least one director should be a resident in the Maldives)
  6. Tax Registration Application Form (MIRA 101S Version 14.1)

Note: This will take an additional 3 working days.

STEP 3

The company will enter to a Foreign Investment Agreement with Ministry of Economic Development of the Republic of Maldives. (Not Applicable for Tourism Sector Investment.)

Costs

  • As per the Business Registration Act (Law no 18/2014) Clause 6, IF the investment value meets the capital requirement of USD 1,000,000 (United States Dollars One Million) you are required to deposit USD 100,000 (United States Dollars Hundred Thousand) as security deposit, or submit a bank reference with the Ministry of Economic Development.
  • In the event where your investment value does not meet the above mentioned capital requirement you are only required to submit a bank reference, as per the template provided by the ministry.

Administration Fee: 2000 USD (this payment has to be made to Maldives Inland Revenue Authority (MIRA), prior to signing the foreign investment agreement) Tourism related foreign company/partnership: does not need to make the 2000 USD payment to MIRA.

  • Revenue Stamp: 500 MVR (32.45 USD)
  • Company Registration fee: calculated based on the authorized capital of the company.
  • Company Annual Fee (paid to MIRA): 2000 MVR (129.7 USD)
  • No fee (annual fee or registration fee) is charged for re-registration.

Documents

  • If any document is not in English, a notarized English translation of that document should be produced.
  • The registration or renewal of registration shall not be deemed to imply that the requirements of any law in relation to any business carried on by that company, or to the persons carrying on the business or employed therein, have been complied with.

Entities investing tourism sector are not required to submit a business plan.

Post Registration

  • If there is a change to any of the information or documents submitted to the Ministry, the change shall be notified and shall submit the amended documents to the Ministry within 15 days of the change.
  • Every company conducting business in the Maldives is required to deliver to the Ministry, a copy of its annual accounts. Any such accounts shall be the accounts prepared to be submitted to the annual general meeting of the company.
  • All companies shall comply with the Business Profit Tax Act (Law No. 5/2011)
  • The Companies Act of the Republic of Maldives, Law No: 10/96, clause 69(1), makes it mandatory for the companies to deliver the Annual accounts and reports to the Registrar of businesses.
  • Once registered, if eligible, you may apply for corporate resident visa (available for download on resource page)

Documents Required For a New Foreign Investment Application (For Re-Registering a Company)

You are required to submit the following documents.

  1. A completed Foreign Investment Application Form
  1. Names, permanent addresses, passport / ID copies of each individual shareholder and director of the investing entity. (If any of the shareholding of the investing entity is a legal entity, other than a public company, the names, permanent addresses and passport / ID copies of that legal entity is required)
  2. A reference letter from a reputable bank on each shareholder (both individual and legal entity)
  1. If the shareholder of the proposed investing company is a legal entity, Resolutions of the Board of Directors confirming their decision to invest in the Maldives as per the proposed ownership structure
  1. Projected Business Plan and Feasibility Study

(a)     Details of the proposed investment, including the main activities of the proposed company.

(b)     Five year projected balance sheet, profit and loss account and cash flow statements for the proposed investment, including all the assumptions made in the financial projections.

(c)      Financing plan for the proposed investment including details of equity, debt etc.

(d)     A phasing plan for investment, detailing the proposed phasing of capital/infrastructure investments (if any)

(e)     Proposed Human Resource Plan, including projected wages and benefits for employees, and foreign labor replacement plan (if the investing company plans to employ foreign labor in its operations, initially)

(f) Feasibility indicators, including NPV, IRR, Payback period

  1. Letter of Authority or Power of Attorney for Contact Person (if any)
  1. Company Registration Certificate, Articles and Memorandum of Association of the entity notarized as true copy (by relevant authorities of the registered country)
  1. Board Resolution of the Company, to re-register the Company in the Maldives, along with business address of the Company in the Maldives
  1. Board Resolution of the Company, appointing a Legal Representative who shall represent the company in any legal proceedings against the Company
  1. Acceptance Letter from the appointed Legal Representative, along with Passport/National ID/Certificate copy and address of the representative (does not have to be a lawyer, but should be a resident individual or registered entity in the Maldives)
  1. If the foreign shareholder is a company, copy of Memorandum and Articles of Association, and copy of Company Registration Certificate, notarized as a true copy
  1. Address of the resident director(s) of the entity, along with VISA copy, either Business VISA or Work VISA (if applicable)
  1. Tax Registration Application Form (MIRA 101S Version 14.1)

Documents Required For a New Foreign Investment Application (For Share Transferring Companies)

You are required to submit the following documents.

  1. A completed Foreign Investment Application Form
  2. Names, permanent addresses, passport / ID copies of each individual shareholder and director of the investing entity. (If any of the shareholding of the investing entity is a legal entity, other than a public company, the names, permanent addresses and passport / ID copies of that legal entity is required.
  3. A reference letter from a reputable bank on each shareholder (both individual and legal entity.
  4. If the shareholder of the proposed investing company is a legal entity, Resolutions of the Board of Directors confirming their decision to invest in the Maldives as per the proposed ownership structure.
  5. Projected Business Plan and Feasibility Study

(a)     Details of the proposed investment, including the main activities of the proposed company.

(b)    Five year projected balance sheet, profit and loss account and cash flow statements for the proposed investment, including all the assumptions made in the financial projections.

(c)      Financing plan for the proposed investment including details of equity, debt etc.

(d)     A phasing plan for investment, detailing the proposed phasing of capital/infrastructure investments (if any)

(e)     Proposed Human Resource Plan, including projected wages and benefits for employees, and foreign labor replacement plan (if the investing company plans to employ foreign labor in its operations, initially)

(f)      Feasibility indicators, including NPV, IRR, Payback period

  1. Letter of Authority or Power of Attorney for Contact Person (if any)
  2. Share Transfer Application Form
  3. Board Resolution of the Company, stating details of the share transfer, along with changes to the Board of Directors (if any)
  4. If the foreign shareholder is a company, copy of Memorandum and Articles of Association, and copy of Company Registration Certificate, notarized as a true copy
  5. Address of the resident director(s) of the entity, along with VISA copy, either Business VISA or Work VISA (if applicable)