Business in Maldives

A business in Maldives normally begins with a concept, a suitable legal form and a check of the activity-specific approvals. The Maldives Business Registry and Registrar of Businesses and Companies are part of the MEDTT system. OneGov and the Business Portal provide digital access to registrations and later changes. A name reservation lasts 14 days and costs MVR 100. Activity registration costs MVR 50, while SME Classification is free. Complete applications are generally processed on the same working day, but a reserved name does not give permission to operate. A Sole Proprietorship is available only to Maldivian citizens. A private company is incorporated under the Companies Act 7/2023 and records matters such as directors, shareholders, address, capital and constitutional documents. A partnership can be a General Partnership or a Limited Liability Partnership under the Partnership Act 13/2011. Partnership registration costs MVR 2,000; a name or type change costs MVR 1,000, and capital changes can require additional processing or a 30-day notice for an LLP. A Cooperative Society is a voluntary, community-based and democratic form under the Cooperative Societies Act 3/2007, with membership, governance, capital, a constitution and compliance requirements. Registering the entity does not by itself authorize the activity. Under the Business Registration Act 18/2014, an activity requiring a permit or licence can begin only after the relevant approval. Activities without an additional licence still need activity registration. A line ministry, sector agency or City, Atoll or Island Council may require permits for premises, land or buildings, health, tourism, fisheries, imports and exports, environmental matters or other local conditions. Local operational permits and the 24-hour operational permit or duty exemption are separate matters, and requirements can vary by island and activity. The approved activity scope should match what the business actually does. Income tax applies to business income. MIRA registration generally becomes due within 30 days after the first Maldives income, and permit-based business commencement or becoming an employer can create an additional registration requirement. A company with taxable income up to MVR 500,000 has a 0% income-tax rate; taxable income above that amount is taxed at 15%. Individual taxable-income bands are 0% up to MVR 720,000, 5.5% above MVR 720,000 to MVR 1,200,000, 8% above MVR 1,200,000 to MVR 1,800,000, 12% above MVR 1,800,000 to MVR 2,400,000 and 15% above MVR 2,400,000. Business Profit Tax was repealed when the Income Tax system commenced. Goods and Services Tax, abbreviated as GST, applies to taxable activities involving continuous or permanent supplies. Registration generally becomes mandatory when turnover exceeds MVR 1,000,000 in a rolling 12-month period. Tourism supplies and importers have separate mandatory-registration rules. The general GST rate is 8%, while Tourism GST has been 17% since 1 July 2025. Registered businesses issue tax invoices or receipts, keep records for five years and report registration-data changes within 30 days. Tax registration, GST obligations and business cancellation are separate processes. A foreign-owned business needs prior approval from MEDTT or Invest Maldives before company registration. Ownership limits and minimum investment requirements depend on the sector. An approved foreign-investment application carries a non-refundable administrative fee of USD 5,000 payable to MIRA, followed by Business Portal registration, a Foreign Investment License and a Foreign Investment Agreement. A foreign company may also need notarized and translated documents and a Maldives Legal Representative Agent. A foreign Business Visa must be obtained before arrival; a Corporate Resident Visa is a different status. SEZ and PSIP routes concern large projects rather than ordinary start-ups. Tourism, resorts, guesthouses, travel, diving, spas and water sports form the strongest national business context. Fisheries, fish processing, marine value chains, atoll retail, transport, logistics, construction, agriculture, food security and ICT are also significant. Renewable energy, waste management, aquaculture, mariculture, climate solutions and creative services are emerging areas. Island geography affects logistics, market size, premises, connectivity and local demand, so a business model that works in Malé or a resort may need different arrangements on an inhabited island. SME Classification can support access to relevant government programmes. The Business Centre Corporation provides training, business support, innovation and SME development services. SME Digital offers a functional pathway to MSME finance, but eligibility depends on registration, financial records, cash flow, security and the rules of the specific product. These support and finance pathways do not replace licensing, tax registration or sector approvals. During operation, the business can need registry updates for its address, directors, shareholders, partners, capital or business objectives. A sole proprietorship can be cancelled for voluntary closure, death or involuntary cancellation. Partnership liquidation proceeds through the Business Portal subject to the partnership agreement. A company may enter voluntary or involuntary liquidation, appoint a liquidator and later seek restoration or reactivation through OneGov; liquidation notices appear in the Registrar's Gazette. Foreign deregistration requires evidence such as cessation, permit expiry or cancellation, dissolution, tax clearance and settlement of employee dues.