Step-by-Step Guide to Registering a Foreign Company in the Maldives

The Ministry of Economic Development and Trade, in accordance with the Maldives Companies Act (No. 07/2023), has formulated and gazetted the Regulations on Foreign Company Registration in the Maldives. Here's a breakdown of this regulation:

Why Re-register?

Any foreign company wishing to conduct business in the Maldives must re-register with the Registrar of Companies. This process of re-registration requires compliance with the Foreign Investment Act, and the Regulations provide a legal framework for operations.

Steps to Follow:

To re-register your foreign company in the Maldives, follow these steps:

1. Secure a Foreign Investment Permit: This is the essential first step. You'll need to obtain approval for foreign investment before proceeding with the re-registration.

2. Prepare Your Documents: Gather the following notarized documents:

   • Company registration details from your home country

   • Information about your company's directors and members

   • Details of your company's assets

   • Information on significant beneficial owners

   • Your company's constitution

3. Appoint a Local Agent: Choose a Maldivian resident over 18 years old to act as your company agent. This person will handle communication with the Registrar of Companies and be legally responsible for your company's actions in the Maldives.

4. Reserve Your Company Name: While you can typically use your existing company name, be aware that the ROC may require modifications to avoid conflicts with local companies.

5. Establish a Registered Office: Secure a physical address in the Maldives where your company can receive official correspondence.

6. Submit Your Application: Submit your application electronically through the Registrar of Companies’s online system.

7. Pay the Fee: Pay the re-registration fee of MVR 2000.

8. Receive Your Certificate: You will receive your re-registration certificate within three days of successful application, provided all requirements are met. This certificate will include your company's registration number, re-registration number, and the period of foreign investment approval.

Ongoing Compliance:

• Maintain accurate records: Keep detailed records of all company activities and transactions.

• File annual financial statements: Submit comprehensive financial reports to the Registrar of Companies, including profit and loss statements, balance sheets, and auditor reports.

• Report any changes: Update the Registrar of Companies within 30 days of any changes, such as a change in registered agent.

Cancellation of Re-registration:

Should you decide to cease operations in the Maldives, you must notify the Registrar of Companies within 7 days, publish a notice in the Registrar's Gazette, and ensure all dues, including employee wages and debts, are cleared before applying for cancellation.

Penalties:

Foreign companies re-registered in the Maldives must notify the Registrar of Companies within 30 days of any changes to their company information, such as name, address, shareholding, or board of directors. Failure to do so will result in a penalty of MVR 1,000.

Fees in Short:

The regulation outlines the following service fees for foreign company registration:

Seeking legal counsel from a firm experienced in company law and foreign investment in the Maldives is highly recommended. Our team can provide expert guidance and support throughout the process, ensuring a smooth and compliant entry into the Maldivian market.