Types of Business Entities in Maldives
Before starting the registration process, you need to decide which type of entity suits your business:
Private Company (Pvt Ltd) The most common structure for established businesses. Offers limited liability protection and can have multiple shareholders. Minimum share capital is typically MVR 10,000 for a local company.
Sole Proprietorship Suitable for freelancers and single-person businesses. No separate legal entity — the owner is personally liable for all debts. Simplest to register but offers no liability protection.
Foreign-Owned Entity Foreign nationals can invest in certain sectors in the Maldives under the Foreign Investment Act, subject to restrictions on ownership percentages in some industries. Resorts and tourism businesses require specific permits from the Ministry of Tourism.
Step-by-Step Registration Process
Step 1: Name Reservation
Submit your proposed company name to the Ministry of Economic Development (MED) for approval. The name must:
- Not already be in use
- Not be misleading or contrary to public interest
- End with "(Pvt) Ltd" for private companies
Name reservation is done through the MED's online portal and typically takes 1–3 business days.
Step 2: Prepare Incorporation Documents
For a private company, you will need:
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Shareholder identification documents (passport or national ID)
- Director identification documents
- Registered office address in Maldives
- Specimen signatures of directors
Step 3: Submit to Ministry of Economic Development
Submit the completed documents to MED along with the registration fee (approximately MVR 1,000–3,000 depending on share capital). Processing takes 5–10 working days for standard applications.
Step 4: Obtain the Certificate of Incorporation
Once approved, MED issues the Certificate of Incorporation. This is your primary corporate identity document and will be required for bank account opening, tax registration, and permit applications.
Step 5: Register with MIRA for Tax
All businesses must register with MIRA for:
- Business Profit Tax (BPT) — applicable if annual profit exceeds MVR 500,000
- GST — required if annual turnover exceeds MVR 1,000,000
- Withholding tax — if you make payments to foreign entities
MIRA registration is done through their online portal. You will receive a Tax Identification Number (TIN) which is used on all tax filings.
Step 6: Open a Corporate Bank Account
Maldivian banks (Bank of Maldives, Maldives Islamic Bank) require your Certificate of Incorporation, MoA/AoA, director IDs, and a board resolution authorising the account opening.
Account opening typically takes 2–4 weeks.
Timelines and Costs
| Step | Estimated Time | Approximate Cost | |---|---|---| | Name reservation | 1–3 days | MVR 100–200 | | Company incorporation | 5–10 days | MVR 1,000–3,000 | | MIRA registration | 3–5 days | Free | | Bank account opening | 2–4 weeks | Varies by bank | | Total | 4–6 weeks | MVR 2,000–5,000 |
Foreign Investment Restrictions
Certain sectors are restricted for foreign ownership:
- Retail and trading — requires Maldivian national as majority shareholder (51%+)
- Tourism — requires resort lease or guesthouse permit from Ministry of Tourism
- Media — subject to specific licensing
If you are a foreign national looking to invest in a restricted sector, a joint venture with a Maldivian partner is typically required.
Common Registration Mistakes
- Using a personal address as the registered office — this is allowed but creates problems if you later move. Use a stable commercial address.
- Incorrect MoA/AoA drafting — poorly drafted constitutive documents cause problems when adding shareholders or changing directors later.
- Missing MIRA registration deadlines — you must register with MIRA within 30 days of commencing business activities.
How We Can Help
Metamorphosis MV handles company registration end-to-end: name reservation, document drafting, MED submission, MIRA registration, and bank introduction. We work with both local entrepreneurs and foreign investors setting up their first Maldivian entity.
Contact our team to get started with your company registration.