Foreign Direct Investment played a crucial role in developing the economics of Maldives. The government of Maldives knows the importance of FDI. Therefore, they are working hard to bring more foreign direct investment in the country. The government of Maldives provides some facilities to foreign investors, which mean the emphasis on promotion of investment activities. The range of Foreign Direct Investment opportunity in Maldives is mainly affiliated with the tourism industry to develop air and sea transport along with marine-based industries. The following are some of the main reason behind the success of foreign investment –
- Liberal trade environment.
- Dynamic private sector.
- Development-oriented legal structure.
- Political stability
- The consistent growth of the economy.
All the business sectors of Maldives are open for foreign direct investment. Most of the foreign investors like this opportunity. There are many reputed international brands, who have already been established their company in Maldives.
Registering Foreign Investment
In Maldives the process of registering a foreign investment is pretty straight forward. The Invest Maldives is the government agencies who, are responsible for providing permits for foreign direct investment. Submit al the required documents to the “Invest Maldives.” If the document procedures are okay, it will just take ten days to get your operation underway.
Invest Maldives plays a significant role in supporting foreign investors in establishing their business. These are the service provide by the Invest Maldives–
- They provide necessary information on Maldives and also provide information about the areas of investment.
- Provide guidance for business registration and investment approval
- They are responsible for marketing and promotion of Maldives investment facilities.
FDI in Figures
Foreign Direct Investment (FDI) flow to the Maldives in 2017 was about USD 517 million. In 2016 the FDI flows in Maldives was USD 457 million. The foreign investment rise in Maldives because of foreign investors in large scale tourism projects, wholesale, construction business, etc. Among small island developing country Maldives current are the third is the recipient of foreign direct investment. The stock of FDI in Maldives grew up to 3.7 billion in 2017. Indians are the leading investor in Maldives, and most invest comes from the tourism sector. The table below shows the FDI flows from 2015 to 2017–
|FDI Stocks||UDS 2757 million||USD 3214 million||USD 3732 million|
|FDI Inward Flows||USD 298 million||USD 457 million||USD 517 million|
|FDI Stock in % of GDP||86%||95 %||n/a|
- Law on (FDI) Foreign Direct Investment opportunity in Maldives, the republic of Maldives according to law: 25/79
- Companies act of the republic of Maldives law which is in accordance with law- 10/96
- Regulations governing duty free businesses in Maldives
- Regulations for issuing licenses to fish in the exclusive economic zone of the republic of Maldives
Advantage of foreign direct investment in Maldives (Investment Incentives)
- 100% foreign ownership right
- Legal guarantee for investments.
- Long-term contractual arrangements and long-term lease of land
- Freedom of use of foreign management, technical and unskilled workers.
- There are no restrictions to send your earning to your own country.
Tax for Foreign Investors in Maldives
|Types of Tax||Percentage|
|Goods and Service tax||6% to 8% (in tourism sector)|
|Social Security Tax||7% (in all business sector)|
|Withholding taxes||Interest 0% royalties 0% and Dividends 0%, tax 10%|
|Emirates working in the country||3% remittance tax|
|Tax rate for companies that has income more than 500000 MVR||15% tax|
|Company making profits outside the country||5% tax|
Entre Permits and Visa Requirements
Peoples who want to invest in Maldives can visit Maldives with a 30 days tourist visa. Within this 30 day, they can carry out any work and research that is related to their investment. However, once the government of Maldives approves your investment, you are eligible to apply for work permits.
Why choose us?
S&F Consulting firm has expert professionals who have several years of experience working in the Maldives. Our experienced professionals will assist you with any types of business problems regarding business registration, auditing, accounting, etc. Our fees are comparatively cheap than others. We highly maintain customer confidentiality and privacy. Well, now you can know about how to register a company in Maldives.
Frequently Asked Question
Q: What is the main income of Maldives?
- The main income of Maldives come from tourism sector and from fishing.
Q: Is Maldives a poor or rich country?
- Maldives is neither poor or rich, it’s a middle-income country with per capita income of $6300.
Q: How long it takes to register a company in Maldives?
- If you can compete all the document procedure properly, it will just take 10 days to register a company in Maldives.