Opening a business in Maldives is a good decision. Like most other Asian countries, starting a business in Maldives is not very hard. But before starting any overseas business it is right for you to know about the people and culture of the country. Maldives is a small country which is surrounded around 1,192 islands, it is situated in the Indian ocean where its neighboring countries are Sri Lanka and India. Maldives is considered to be the world’s best tourist spot where people all around the world visits to enjoy the leisure and pleasure of staying in the resort. In a fact the countries main economy comes from the tourism sector.
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Starting A Business in Maldives
Starting a business is not easy, especially in a foreign country. It is important for you to understand the country, people and culture. According to the country and interest of people, the business chosen needs to be wise. In 2014, Maldives has been ranked 50 to easily start a business. According to the country’s Business Registration Act the businesses to start must be registered under the following forms:
- Company under the Maldives act
- Partnership Act
- Corporative Society Act
- Sole Proprietorship Act
Registration of A Company
During the registration of the company you need to choose a distinctive name for the company. Once the name is chosen then the standard application form for the incorporation of the company is needed to be filled. This registration will take one and no fee will be charged. According to Companies Act 1996 the registrar of the company will decide to accept or not accept the registration form depending on the name chosen for the company. After that the registrar gives a standard memorandum of association and articles of association to make the incorporation easier. After this a standard form is to be taken from the internet.
Read Aldo: How to register a company in Maldives?
Company Registration Fee
The registration fees are monitored by the Ministry of Economic Development. The registration of fee payment takes one day. The fee payment depends on the variation of payment which is decided by the share capital. Apart from the variation the average fees are:
| TITLE OF PAYMENT | AMOUNT TO BE PAYED |
| Public Firms | MVR 10,000 (US$ 64.49) |
| Private Firms | MVR 2,000 (US$ 129.87) |
| Registration of Tax Identification Number (TIN) | MVR 250 (US$ 16.23) |
Maldivian Rufiyaa (MVR) is Maldives main currency note. The most commonly used foreign currency is US dollar. After the registration of public and private firm the next stage is to register TIN according to the Companies Act 1996. It is a must to get the companies seal and make the TIN registration payment which will take one day. Again, a seal should be sealed with the registrar of the companies in which there will be no fees provided. This process also takes a day.
Recommended Industrial Sectors
Starting a business in another country should be according to the country’s environment, people and culture. Here are some of the suggested industrial sector for a foreign investor to start a company in Maldives, and they are:
- Hotel management
- Restaurant and Fast Foods
- Child care
- Interior designing
- Cleaners
- Photography
- Legal advisors
- Accounting
Incentives For Foreign Investors
There are various opportunities received by the foreign investors from Maldives. The incentives are:
- 100% foreign ownership guaranteed.
- No restrictions for foreign exchanges.
- Long term agreement and lease of land.
- Warranty return on investment.
- Foreigners are liberal to use management level, technical level and unskilled labors.
- There is no rule of returning back the profits earned.
- No restriction to overseas negotiation.
The foreigners in Maldives are treated as equals. They do not have any controlled rules and regulations for the foreigners who invest business in the country.
Conclusion
Maldives is a country where a business can be started flexibly without any obstacles. The Ministry of Economics in Maldives also claims that the foreigners should be fairly monitored on starting business in Maldives and functions where it should be clear and transparent to them without any interruptions. The Ministry of Economic supports foreign investors in Maldives and the government is planning to organize country’s free commercial port where international trading can be done. The plan of the port is to set in the capital city of Maldives, Male. The country plans on improvising the economic structure and Maldives would like to provide distinctive sectors such as finance, IT and shipping services.
FAQ
Is it idle to start a Business in Maldives?
- Yes, Maldives is one of the recommended countries to start a business as a foreigner.
In Maldives are there any restrictions for foreigners?
- According to the Ministry of Economics in Maldives the foreigners will be monitored fairly.
What kind of business can be started in Maldives?
- There are several sectors to start a successful business in Maldives some of them are interior designing, accounting firms, cleaners, etc.