To open a business in the Maldives, you must first decide on the business structure, usually a private limited company, reserve a company name with the Ministry of Economic Development, and draft your Memorandum and Articles of Association.
You’ll also need at least two directors (one resident in the Maldives), a local company secretary, and a registered office address.
Once these are in place, you submit your application to the Registrar of Companies, register for taxes with the Maldives Inland Revenue Authority (MIRA), and secure any sector-specific licenses your business may require.
This article guides you through each step of the process of setting up a business in the Maldives in detail, from identifying the best offshore business opportunities in the Maldives for foreigners, to understanding foreign investment rules, capital requirements and tax registration.
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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
Business Opportunities in the Maldives
The Maldives is best known globally as a luxury tourism destination, but its economy offers a wider range of opportunities for entrepreneurs and foreign investors.
- Tourism and Hospitality
Tourism is the backbone of the Maldivian economy, accounting for a large share of GDP and employment. Opportunities extend beyond luxury resorts to guesthouses, dive centers, eco-tourism ventures, and travel agencies. Foreign investors are especially active in this sector, but it often requires significant capital and government approvals. - Fisheries and Marine Resources
Fishing is the second-largest industry and a vital source of exports. Businesses engaged in fish processing, cold storage, or export logistics can find strong demand. Sustainable fishing practices are particularly encouraged, aligning with the Maldives’ environmental commitments. - Renewable Energy and Sustainability
With limited land and resources, the Maldives is pushing for renewable energy solutions such as solar, wind, and ocean energy. Companies offering sustainable technology, waste management, or water desalination services are increasingly sought after. - Logistics and Transport
Given the country’s geography of nearly 1,200 islands spread across the Indian Ocean, logistics is both a challenge and a business opportunity. Services that improve inter-island connectivity, warehousing, and supply chains are valuable to both the tourism and fisheries sectors. - Real Estate and Infrastructure
Urban development projects in Malé and island reclamation projects for resorts and housing create demand for construction firms, real estate developers, and related services.
Doing Business in the Maldives: Company Types
Before you start a business in the Maldives, decide the type that best fits your goals. Most foreign investors choose to set up a Private Limited Company or a Branch Office, as these give the right balance between flexibility, protection, and compliance with the Foreign Investment Act.
- Private Limited Company (Pvt. Ltd.)
This is the most common structure for both locals and foreigners. It requires at least two shareholders and two directors, with one director being a Maldivian resident. A company secretary, who must be a Maldivian citizen, is also mandatory. Private limited companies are popular because they provide limited liability protection and flexibility in ownership. This will almost always be the recommended option. - Public Limited Company (PLC)
A public company can offer shares to the public but comes with stricter regulations and higher minimum capital requirements. This structure is less common for small or medium businesses and is generally reserved for larger ventures or those seeking to raise significant capital. - Partnerships
You can set up a general or limited liability partnership in the Maldives. Partnerships are simpler to establish but carry more risk, as partners may share liability depending on the agreement. This can work for small businesses but offers less protection than a Pvt. Ltd. - Sole Proprietorship
This is the simplest form of business but is available only to Maldivians. Foreigners cannot operate as sole proprietors in the Maldives, so this option is not open to expat investors. - Branch Office of a Foreign Company
If you already operate a company abroad, you can open a branch office in the Maldives. This allows you to expand operations under the same brand, but the branch must comply with Maldivian laws, appoint a local representative, and register with the Ministry of Economic Development.
Can foreigners own 100% of a company in the Maldives?
Yes. Foreign ownership in the Maldives is possible, but it is regulated under the Foreign Investment Act.
To begin, a foreign investor must apply for a foreign investment permit through the Ministry of Economic Development. The application typically includes a business plan, details of the proposed activity, and proof of capital.
- Ownership and Sector Restrictions
In many industries such as tourism and renewable energy foreigners can own up to 100% of the company. However, in certain sensitive sectors, the government may require joint ventures with local partners. It’s important to confirm whether your planned business activity is open to full foreign ownership before committing. - Resident Director Requirement
All companies must have at least two directors, and one of them must be a resident of the Maldives. This ensures that the government has a local point of contact for compliance and regulatory purposes. - Company Secretary Requirement
Every company must also appoint a Maldivian citizen as company secretary. This role is responsible for ensuring that the company complies with reporting obligations, record-keeping, and legal filings. - Registered Office
You’ll need a local address for your registered office in the Maldives. This can be your business premises or a legal service provider’s office, but it must be a physical location.
You don’t always need a local shareholder, but you must appoint at least one resident director and a Maldivian citizen as company secretary.
These requirements mean that while a foreign investor can control and fund the business, the company must have strong ties to the local system through its directors, secretary, and registered office.
For most entrepreneurs, working with a local business services provider or a trusted expat financial advisor makes the process smoother.
How to Open a Company in the Maldives: Step-by-Step Guide
Once you’ve chosen your business structure and confirmed your eligibility under the Foreign Investment Act, you can begin the company registration process. Here’s a clear breakdown of how to register a company in the Maldives:
- Step 1: Reserve a Company Name
Apply to the Ministry of Economic Development (MoED) to reserve your company name. Private companies must include “Private Limited” or “Pvt. Ltd.” at the end of the name. The name must be unique and not already in use. - Step 2: Draft Incorporation Documents
Prepare the Memorandum of Association and Articles of Association. These documents define your company’s objectives, shareholding structure, and governance. Details of directors, shareholders, and the registered office must also be included. - Step 3: Appoint Directors and a Secretary
Appoint at least two directors (with one Maldivian resident) and a Maldivian citizen as company secretary. Foreign shareholders will need to provide passports and supporting documents. - Step 4: Register the Office Address
Provide a registered office address in the Maldives. This is where official notices and correspondence will be sent. - Step 5: File the Application with the Registrar of Companies
Submit your incorporation documents to the Registrar of Companies under the MoED. This usually involves online submission and payment of registration fees. - Step 6: Obtain a Foreign Investment Permit (if required)
For foreigners, the investment permit is issued alongside incorporation approval. This allows you to own shares in the company and operate legally under the Foreign Investment Act. - Step 7: Register with the Maldives Inland Revenue Authority (MIRA)
Apply for a Tax Identification Number (TIN). All companies must register with MIRA to pay Goods and Services Tax (GST), Income Tax, and employee-related contributions. - Step 8: Apply for Business Licenses
Depending on your sector, you may need extra licenses. For example, a guesthouse requires a tourism license, while a fisheries business may need environmental and marine approvals.
How much does it cost to start a business in the Maldives?
While the minimum capital required to start a business in the Maldives is just MVR 2,000, the real cost of setting up depends heavily on the scale and industry of your venture. Investors should plan for both upfront incorporation fees and ongoing compliance expenses.
Actual costs can vary depending on the business type and sector.
- For a Private Limited Company: MVR 2,000 is the minimum share capital required.
- For a Public Limited Company: The minimum is higher, often MVR 1 million or more, since PLCs can issue shares to the public.
- For Partnerships: No fixed minimum, but partners must contribute agreed-upon amounts.
How long does it take to register a company in the Maldives?
With complete documents, a company can usually be registered within a few days. However, foreign investment permits and sector-specific approvals may take longer.
What taxes do businesses pay in the Maldives?
Once your company is incorporated, the next step is to register with the Maldives Inland Revenue Authority (MIRA) for tax purposes. This is mandatory for all businesses, whether locally owned or foreign-invested.
- Goods and Services Tax (GST)
The Maldives applies a Goods and Services Tax on most goods and services. Businesses must register for GST if their annual turnover exceeds a threshold (commonly MVR 1 million), though voluntary registration is also possible. There are two rates:- General GST (8%) applies to most businesses.
- Tourism GST (16%) applies specifically to tourism-related services such as resorts, guesthouses, and liveaboards.
- Income Tax
The Maldives introduced an Income Tax Act in 2020, replacing the earlier Business Profit Tax. Companies and individuals are subject to income tax on profits, with progressive rates depending on taxable income.
Employers must also deduct withholding tax on certain payments to non-residents (for example, royalties or technical service fees) and are also responsible for making pension contributions for local employees.
Companies must file annual returns with both the Registrar of Companies and MIRA, including audited financial statements if they meet certain thresholds. Late filings can result in penalties.
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