Brand new Maldives Foreign Investment Act comes into Effect
The brand new Maldives Foreign Investment Act comes into effect on December 3rd, 2024.
The Foreign Investment Act (11/2024), ratified on September 3rd, 2024, replaces the 45-year-old Foreign Investment Act. This modernized law, comprising 39 pages and 45 provisions, establishes clear procedures for foreign investment in the Maldives.
Under the new law, the Ministry of Economic Development and Trade will be responsible for implementing the act.
FDI Registartion Process
Step 1: Seeking Approval for the Foreign Investment Proposal
To initiate the process, please submit duly completed application form and supporting documents to: fiu@trade.gov.mv
Step 2: Review of the Application
Once an application is received, it will be acknowledged, and a reference number will be shared with the applicant. If any additional documents are required, the applicant will be notified.
The final decision will be shared with the applicant after reviewing the submitted application and supporting documents.
If an application is approved, a no objection letter will be issued by the Ministry along with a draft copy of the Foreign Investment Agreement to be signed with the Ministry.
Step 3: Foreign Investment Administrative Fee
After receiving approval, the applicant is required to make a payment of USD 5,000 for the foreign investment administrative fee to the Maldives Inland Revenue Authority (MIRA). This is a non-refundable processing fee charged for all approved applications.
Step 4: Business Registration
Having settled the foreign investment administrative fee, Applicants are required to share a copy of the receipt issued by MIRA with: fiu@trade.gov.mv
The respective forms required for registration and the standard templates for the constitutional documents can be found in the relevant service in oneGov: Company Registration & Changes
Applicants can submit registration documents via the Business Portal.
Step 5: Issuance of the Foreign Investment License
Following registration of the entity, the Ministry will issue a Foreign Investment License to the entity.
Step 6: Signing the Foreign Investment Agreement
The last step is to finalize and sign the Foreign Investment Agreement with the Ministry of Economic Development and Trade.
How Much does this Cost?
All approved applicants are required to make a payment of USD 5,000 to the Maldives Inland Revenue Authority (MIRA).
The fee required for business registration can be calculated from the link, which depends on the capital amount: Registration Fee Calculator
Whereas, for share transfer requests, MVR 100 is charged to complete the process.
Application Forms
This application form is required for incorporation and re-registration of a foreign investment entity.
This application form is required if an existing local entity wishes to transfer shares of the entity to a foreign party.
This application form is required if an existing foreign investment entity wishes to add new objectives to the approved scope of the Business.
This application form is required if an existing foreign investment entity wishes to renew or extend the duration of the Foreign Investment Agreement or Foreign Investment License.
This application form is required for incorporation and re-registration of a foreign contractor. Please note that all foreign contractors will be registered on the basis of the project award.
This application form is required if an existing foreign contractor wishes to include a newly awarded project in the approved scope of the Business.
This application form is required if an existing foreign contractor wishes to renew or extend the duration of the Foreign Investment Agreement or Foreign Investment License. The applicant is required to submit an Extension of Time (EoT) from the employer of an ongoing project or proper justification with a Board Resolution.
Here is a summary of the Foreign Investment Act (No. 11/2024): https://www.nasheeds.co/blog/maldives-new-foreign-investment-law-in-brief
