Foreigners Can Adapt Well with the Legal Structure Governing Maldives Company Formation
Starting a company is not easy, and when it comes to Maldives company formation, you must get follow the rules and regulations. In the Maldives, the first process is searching for a distinctive company’s name before acquiring the standard forms for incorporation from the Registrar of Companies. You must seek endorsement to legitimize your company for operations. If you cannot visit the Registrar offices, you can download the standard forms from their online platform.
Business Entities in the Maldives
Once the name search and approval is complete, you must pay a registration fee at the Ministry of Economic Development. In the Maldives, one can do business registration for two types of company structures. These are Privately Limited Company (Pvt Ltd) and Public Limited Company (Plc). Foreign companies’ incorporation is under the Foreign Investments Laws and the documents are a little different.
Some of the stipulations for a Private Limited Company will require you to have a minimum of two shareholders and a minimum paid-up capital of MVR2,000. Meanwhile, a Public Limited Company must have a capital of MVR1,000,000.
Maldives company formation requires some specific legal documents that are mandatory which include:
- A Memorandum and Articles of Association
- Company registration application form
- acknowledgment letter from the company secretary and the Executive director
- original copies of ID cards of the shareholders
- Board of Directors and Secretary
- reservation form for the company name
The process may take longer in case your documents are unfinished or other unanticipated issues. However, the stipulated time frame should be one to two days.
Investing and Operating in the Maldives
Should you be a foreigner and want to incorporate a company in the Maldives, you’re eligible to choose from either setting up an investment solely owned by foreigners or establish a Joint Venture with a Maldivian resident. The Maldivian resident should own 51 percent or more for a Joint Venture investment. When it comes to Maldives company formation, as a foreigner incorporating a Joint Venture investment you’ll pay a yearly royalty equivalent to 1.5 percent of your Gross turnover.
With relation to company formation, it’s necessary for you to open a bank account. This will enable you to do normal financial operations even at the point where you’ll be paying up the minimum capital. Every company much have a registered office and address as it’s a mandatory requirement. According to the Company Act, in the process of legitimizing your company, you need to have to make a company seal before registering it with the Registrar of Companies.
It’s no doubt that you must register for tax compliance. You must submit the relevant documents with the Registrar of Company, which will then issue you a Tax Identification Number (TIN). This number will enable you to file your monthly tax returns alongside other tax obligations.
For you to operate your company efficiently, you need to have the right employees. Therefore, the law requires that you register your employees with the Maldives Pension Administration office according to the Pension Act. Besides, Maldives company formation will only be successful when you understand the right procedures and secure the right documents.
Contact us for more information regarding business registration in the Maldives. We’re rooting for your success in this venture.