The Maldives is a small island nation in the Indian Ocean. It is one of the least populous and smallest Asian nations, and it boasts more than a thousand coral islands. Visitors from all over the world come to this country to take in the natural beauty. This nation’s economy is strong; as of right now, the GDP per capita is USD 10,535.79.
The nation’s two primary industries are tourism and fishing. These two industries generate the majority of the nation’s income. The tourist industry has been the key driver of this country’s economic growth. The GDP was approximately $1.5 billion in 2010, and it is currently increasing at a pace of 4% annually. This country has a highly developed economy, which attracts investors from all over the world.
An advantage for the foreign investors
As a foreign investor, there are numerous benefits to establishing a business here. The Maldives’ government offers a variety of commercial opportunities to draw in more foreign direct investment. The administration of resorts, telecommunications, accountancy, and allied banking sectors was where most foreign investors concentrated their efforts in this country. Here, the Ministry of Economic Development is the government agency in charge of issuing all different kinds of company licenses. Here are some benefits of conducting business in this country:
- Establishing a firm with 100% foreign ownership.
- There are no restrictions on sending their earnings back to their home nations.
- Immigrant Maldivians are exempt from personal income tax. Just a 3% remittance tax is required.
- The government supports environmentally beneficial projects
- The government also provides local personnel with training
- Maldives company registration process can be completed in as little as 30 days.
The disadvantage for the foreign investors
Though doing business in this nation has many benefits, there are some drawbacks as well. The Maldivian government may suspend any foreign investment with or without prior warning if the foreign investors breach the security legislation.
The Maldives’ constitution is founded on Islamic Sharia Law because it is a Muslim nation. For international investors, maintaining certain business laws may be essential.
In the Maldives, corruption is a serious issue. Bribery is practiced by the public sector and by public servants.
Work culture
In this country, the workweek runs from Sunday to Thursday. the regular business hours of 8 am, 9 am, to 5 pm, or 6 pm. However, 8 hours is the typical workday for the whole manufacturing sector. On a typical day, all banks in the Maldives are open from 8.30 am to 2 pm. However, during Ramadan, office hours are from 9.30 am to 12.30 pm.
In the Maldives, the majority of stores are open till 11 p.m. However, several of the stores also close in the late afternoon, between 4 and 6 pm. For a brief period (15–20 minutes) during the day, most businesses are closed for prayers. The government office hours are from 7.30 am to 2.30 pm on Sunday through Thursday. The office is open from 9.30 am to 1.30 pm during Ramadan.
Opening a business in Maldives
Start by searching for and choosing your company name (the name must be unique). Gather the firm incorporation application forms and complete them completely. Pay the required registration fees next. The registration charge varies according to the amount of shared capital.
The fees are MVR 1000 if the permitted capital is at least MVR 10,000. There are 4000 MVR in payable charges and several types of income tax in the Maldives if the allowed capital exceeds 10,000 MRV.
You are now qualified to register with the register of companies after paying the fees. A maximum of five days will pass. The annual corporation charge, along with the variable registration price, is around 2000 MVR. Additionally, 500 MVR are subject to stamp duty. You must create a corporation seal, which will cost you between 200 and 250 MVR.
Finally, the corporate seal must be registered with the company registration. It will take a day to complete (free of charge).
