If you are a foreigner looking to incorporate a business entity in the Maldives, you have two options: forming a company or a partnership. Here is a breakdown of each option.
Companies
Companies are governed by the Companies Act and overseen by the Registrar of Companies under the Ministry of Economic Development and Trade. Any company (private or public) with foreign shareholding is considered a foreign investment company in the Maldives.
The most common type of company is the private limited company. In the Maldives, a private company can be owned by a single shareholder or can have up to 50 shareholders. Each private company must appoint a managing director and have at least one director who is ordinarily resident in the country. Shareholders can serve as directors or appoint representative directors. In foreign investment companies, foreigners can be appointed as directors.
Company Registration Options for Foreigners
Foreign investments are typically registered as private limited companies. Foreigners can either register a new company, or re-register a foreign enterprise incorporated abroad if the sector allows 100% foreign ownership. While private companies typically need at least one director who is ordinarily resident, re-registered companies are exempt from this requirement. However, starting from 1 January 2025, re-registered companies must appoint a local agent residing in the Maldives. The local agent ensures compliance with the Companies Act, takes responsibility for non-compliance, and handles correspondence from the Registrar of Companies.
Before establishing a new company or re-registering a foreign enterprise, foreigners must obtain foreign investment approval from the Ministry of Economic Development and Trade. For more information on foreign investment approval, refer to our incorporation guide #2.
Partnerships
Governed by the Partnership Act, partnerships are regulated by the Registrar of Businesses under the Ministry of Economic Development and Trade. In the Maldives, partnerships can be formed by two or more persons, and there is no specific limit on the maximum number of partners. Foreigners looking to register a partnership must first obtain foreign investment approval from the Ministry.
Partnership Registration Options for Foreigners
There are two types of partnerships: general partnerships and limited liability partnerships, both of which are available to foreigners seeking to incorporate a partnership. General partnerships are formed solely by natural persons and involve unlimited liability, where partners are jointly and severally liable for the partnership’s debts and obligations. On the other hand, limited liability partnerships can include both natural persons and legal entities, with liability limited to their capital contribution to the partnership. Each partnership must appoint a managing partner, who must be ordinarily resident in the country, and execute a partnership agreement in accordance with the Partnership Act.
Ready to embark on your business venture in Maldives? Choose our experienced team at RCo Lawyers to lead you through the incorporation process seamlessly. With our specialized expertise, we offer personalized solutions in crafting the constituting documents perfectly suited to your company or partnership needs.