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Business Permits & Incorporation for Foreigners in Maldives

Good to know

Good to Know

  • Foreign individuals cannot register as a sole proprietor in the Maldives — you must incorporate a company, form a partnership, or buy shares in an existing local company.
  • The USD 5,000 foreign investment administrative fee is non-refundable even if you later abandon the venture, so it's worth firming up your business plan and sector eligibility before paying it.
  • A handful of sectors (small-scale food & beverage outlets, heavy machinery leasing) are reserved entirely for Maldivian nationals — no foreign ownership structure gets around this.
  • The guesthouse industry is open to foreigners but capped at 49% foreign shareholding, so a local joint-venture partner is effectively required there.
  • The official minimum share capital (MVR 2,000, about USD 130) is nominal — in practice, MED's approval process for most sectors expects real investment commitments, often cited around USD 1,000,000, so don't expect to incorporate on the statutory minimum alone.
  • Since 1 January 2025, foreign companies re-registering a Maldives branch must appoint a Maldives-resident local agent — factor this into your setup even if you don't need a full local partner.
  • There's no informal 'just invoice as a freelancer' path for foreigners here — legally, any local business activity by a foreigner requires Foreign Investment approval first, whether you plan to operate solo or via a company, so many remote workers instead keep their income sourced/invoiced through a foreign entity and simply live in the Maldives rather than register locally.
  • The Maldivian rufiyaa (MVR) is a currency pegged closely to the US dollar, so USD conversions of local fees and thresholds stay fairly stable over time compared to floating-currency countries.
  • The 0% band on the first MVR 500,000 of profit means many small foreign-owned ventures pay no corporate income tax at all until they scale past roughly USD 32,000 in annual taxable profit.
  • Retail trade and most restaurant/café operations are closed to foreign investors outright — if your business idea touches these areas, you'll need a Maldivian majority partner or a different business model.

Costs

  • Foreign Investment Administrative Fee (Paid to MIRA) — Statutorily Fixed in USD
    Foreign Investment Administrative Fee (Paid To MIRA) — Statutorily Fixed In USD
    MVR 77,300
  • Minimum Share Capital for New Private Limited Company Incorporation
    Minimum Share Capital For New Private Limited Company Incorporation
    MVR 2,000
  • Company / Branch Registration (or Re-registration) Fee
    Company / Branch Registration (Or Re Registration) Fee
    MVR 2,000
  • Penalty for Failing to Notify Registrar of Companies of Changes Within 30 Days
    Penalty For Failing To Notify Registrar Of Companies Of Changes Within 30 Days
    MVR 1,000
  • MVR

Step By Step Process

  • Choose business form and confirm the sector's FDI policy
    Step
    1
    Detail
    Decide whether to incorporate a new company, re-register a foreign company's branch, acquire shares of a local company, or form a partnership, and check whether the target sector is fully open, capped, or reserved for Maldivians under the government's FDI Policy.
  • Step
    2
    Action
    Submit a Foreign Investment Application to Invest Maldives (MED)
    Detail
    Application and supporting documents (passport/ID copies of shareholders, directors and legal representative, company profile/CV or business plan, notarized constitutional documents for a re-registering foreign company, and for some sectors a letter of financial credibility) are submitted to MED's Foreign Investment Unit, either online or at the Invest Maldives office.
  • Step
    3
    Action
    MED reviews under the Automatic or Government approval route
    Detail
    Applications under the 'Automatic' route are reviewed in about 2 working days; applications requiring 'Government' route review take roughly 5 to 14 working days, with some sources citing a maximum of up to 30 working days for more complex cases.
  • Pay the Foreign Investment Administrative Fee
    Step
    4
    Detail
    Once approved, a non-refundable administrative fee of USD 5,000 must be paid to the Maldives Inland Revenue Authority (MIRA), with the receipt shared with MED.
  • Step
    5
    Action
    Register the business entity with the Registrar of Companies / Registrar of Businesses
    Detail
    Filed via the oneGov Business Portal. New private limited companies need a proposed unique name ending in 'Private Limited' ('Pvt. Ltd.'), a minimum registered share capital of MVR 2,000, and a registered office address in the Maldives; re-registering a foreign branch instead requires a board resolution, company constitution, and a locally resident legal representative/agent. Registration is typically completed within 1 to 3 working days once documents are in order.
  • Sign the Foreign Investment Agreement (FIA)
    Step
    6
    Detail
    After the entity is registered, the investor signs a Foreign Investment Agreement with MED (or with the Ministry of Tourism for tourism-related investments), which sets the approved investment period; the company generally has six months from signing to commence operations.
  • Tax registration and sector licenses
    Step
    7
    Detail
    Register with MIRA for tax purposes and obtain any sector-specific licenses (e.g. for construction, healthcare, or tourism activities) before commencing operations.

Business Tax And Structure Options

Corporate Tax

Rate Structure
Companies are taxed at 0% on the first MVR 500,000 of taxable profit in a tax year, and a flat 15% on taxable profit above that threshold. Banks are taxed differently, at 25% on their total taxable income.
Bank Rate Percent
25
Zero Rate Threshold
MVR 500,000
Standard Rate Percent
15
Legal Basis
Income Tax Act (Law Number 25/2019), effective from 1 January 2020, which repealed the older Business Profit Tax Act and Bank Profit Tax Act.
Capital Gains
No separate capital gains tax regime; gains are generally captured within the same income/business-profit tax framework rather than taxed under a distinct capital gains tax.
Loss Carry Forward
Trading losses can be carried forward and offset against taxable income in future years.
Foreign Company Treatment
Foreign-owned companies are taxed at the same rates as local companies on income sourced from the Maldives; residency status does not change the corporate rate, only what income is in scope. Non-resident companies with a permanent establishment in the Maldives are also brought into this regime.
Withholding Tax On Outbound Payments
Payments to non-residents such as dividends, interest, and royalties are generally subject to a 10% non-resident withholding tax (0% for residents), remitted by the paying company to the Maldives Inland Revenue Authority (MIRA).

Filing And Compliance Obligations

Registration
All businesses, including foreign-owned companies and partnerships, must register with MIRA for income tax purposes and, once above the relevant turnover threshold, for GST as well.
Recordkeeping
Businesses must keep profit/loss statements, invoices, withholding tax and pension receipts, and GST documentation for at least five years for audit purposes.
GST Obligations
Businesses above the specified turnover threshold must register for and file Goods and Services Tax (GST). The general GST rate is 8% on most goods and services, with a higher rate (around 16%) applying to tourism-sector supplies (resorts, hotels, guesthouses, vessels).
Interim Returns
Interim tax returns (with estimated tax payments) are due on or before 31 January and 31 July each year.
Annual Return Deadline
Annual income tax return and final tax payment due on or before 30 June of the year following the tax year.
Other Recurring Levies
Tourist-facing businesses (resorts, hotels, guesthouses, vessels) also collect a separate Green Tax of USD 6 per guest per night, filed and paid monthly to MIRA by the 28th of the following month — relevant if a nomad-run business touches tourism accommodation, distinct from the corporate income tax itself.

Freelancer Sole Proprietor Vs Company

Company Route
Most foreign-owned ventures instead register a Private Limited Company under the Companies Act (Law 7/2023), which can have a single shareholder (up to 50), can be 100% foreign-owned in sectors where that is permitted, and must appoint at least one director who is ordinarily resident in the Maldives (foreigners can also serve as directors). Re-registering an already-incorporated overseas company as a Maldives branch is an alternative to incorporating fresh, where the sector allows 100% foreign ownership.
Key Practical Point
There is no simplified 'freelancer' or informal sole-trader visa/registration track for foreigners in the Maldives. Any foreigner wanting to conduct business activity locally — whether as a sole proprietor, in a partnership, or through a company — must first obtain Foreign Investment approval from the Ministry of Economic Development, Transport & Trade (formerly the Ministry of Economic Development and Trade) before registering the business entity, regardless of which structure is chosen.
Company Registration Fee Example
MVR 2,000
Sectors Closed To Foreign Investment
Certain sectors are reserved exclusively for Maldivian ownership, including retail trade, most food and beverage service activities (cafés, restaurants, bakeries — except food franchises), and rental/leasing of heavy machinery, among others; this affects which structure and sector a foreign freelancer/entrepreneur can legally operate in at all.
Sole Proprietorship Partnership Route
Sole proprietorships and partnerships are registered under the Business Registration Act (Law 18/2014) with the Registrar of Businesses. Foreigners looking to register a partnership must first obtain foreign investment approval from the Ministry before proceeding; unlike a company, a sole proprietorship/partnership does not shield personal liability, and general partnerships involve unlimited, joint-and-several liability for partners.

Foreigners cannot simply register a normal Maldivian business — any commercial activity involving foreign ownership is treated as 'Foreign Investment' and must go through the Ministry of Economic Development, Transport & Trade (MED) / Invest Maldives before a company or partnership can be registered. Foreign individuals cannot register as sole proprietors under any circumstance and must use a company or partnership structure, or acquire shares in an existing local company.

Typical Timeline

Slower Case
Complex or large-scale investments (e.g. resort development, sectors needing special committee review) can take longer, with some approval processes cited as taking up to 30 working days before registration even begins.
Fastest Case
Roughly 1–2 weeks total for a straightforward company in an 'Automatic route' sector: ~2 working days for FDI approval, same-day fee payment, and 1–3 working days for entity registration, before finalizing the Foreign Investment Agreement.
Typical Case
4–6 weeks where the 'Government approval route' applies (5–14 working days for FDI review) plus time for document preparation, notarization/translation of foreign documents, and negotiation/signing of the Foreign Investment Agreement.

Eligible Business Forms

Eligible Business Forms

  • New incorporation of a private limited company ('Pvt. Ltd.') with foreign shareholding
  • Re-registration of an already-existing foreign company as a Maldives branch
  • Acquisition of shares in an existing locally incorporated company
  • General partnership or Limited Liability Partnership with foreign partners
  • Sole proprietorship is NOT available to foreign individuals

Local Partner Sponsor Mandates

General Rule
Most sectors open to foreign investment allow 100% foreign ownership with no mandatory local partner or minimum local shareholding.
Sectors Fully Reserved For Locals
Some activities are reserved exclusively for Maldivian nationals/entities and are closed to foreign investment altogether regardless of partnership structure — documented examples include food and beverage service activities (cafés, restaurants, bakeries and other eateries, with the exception of food franchises) and rental/leasing of heavy-duty machinery.
Capped Sectors Requiring Local Partner
A small number of sectors impose a foreign-ownership ceiling, effectively forcing a joint venture with a local partner — the clearest documented example is the guesthouse industry, which is capped at a maximum of 49% foreign shareholding.
Mandatory Local Agent Or Representative
As of 1 January 2025, foreign companies re-registering a branch in the Maldives must appoint a local agent who is resident in the Maldives; this agent is responsible for compliance with the Companies Act and handles correspondence with the Registrar of Companies. Separately, both new companies and re-registered branches must maintain a legal representative/registered office address in the Maldives, and partnerships must appoint a managing partner who is ordinarily resident in the country.
Resident Director Note
Newly incorporated private limited companies generally need at least one director who is ordinarily resident in the Maldives, though foreigners can otherwise sit on the board without restriction; re-registered branch companies are exempt from the resident-director rule but must still have the local agent described above.

Official Registry And Government Links

AI-generated estimateData refreshed July 2026

Sources cited for this category

These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.

  1. 1.business.egov.mv
  2. 2.trade.gov.mv

More About Maldives

Data last updated July 2026 · Verify anything important.