Foreign investment in the Maldives: how approval works

The Maldives welcomes foreign investment, especially in tourism, infrastructure and services, but foreigners cannot simply register a business and start trading. Every foreign investment must first be approved by the government. This guide explains the approval process as it stands under the current law, what the government looks at, the costs involved, and what you need to do after approval.

Who needs foreign investment approval?

Approval is needed whenever a foreign person or a foreign company wants to do business in the Maldives. In practice this covers:

• a foreigner setting up a new Maldivian company, alone or with partners;
• a foreigner taking shares in an existing Maldivian company;
• an overseas company opening a branch or registering its local operations; and
• a foreign investor in a joint venture with a Maldivian partner.

The general rule is simple: approval comes first, company registration second. The Business Portal will not complete a registration involving a foreign shareholder without the approval documents.

The legal framework

For decades, foreign investment was governed by the Law on Foreign Investments of 1979. A new Foreign Investment Act came into effect on 3 December 2024, replacing it. Alongside the Act, the government publishes a foreign investment policy that lists which sectors are open to foreign investors, on what conditions, and with what level of foreign ownership.

There is also a separate route for larger projects: the Special Economic Zones Act (Law No. 24/2014). Investments in designated special economic zones operate under their own, generally less restrictive, rules and can qualify for tax concessions.

Because the new Act is recent, many websites still describe the 1979 system. If a guide does not mention the 2024 Act, check its information carefully.

Which authority handles applications?

Foreign investment applications are handled by the Ministry of Economic Development and Trade, through its investment promotion arm, Invest Maldives. The same ministry runs the Business Portal where companies are registered, which helps keep the two steps connected.

Is your sector open to foreign investors?

This is the first question to answer, because it decides whether the rest of the process is worth starting. The foreign investment policy sorts business activities broadly into:

• Open sectors, where foreign investors can hold up to 100% subject to approval;
• Restricted sectors, where foreign ownership is capped or a Maldivian partner is required; and
• Closed sectors, which are reserved for Maldivians.

The policy also describes two approval routes. An automatic route applies to applications that meet set criteria and are approved as a matter of course. A government route applies to sensitive sectors, where officials assess each case more closely and other ministries may be consulted.

Minimum investment levels and capital requirements depend on the activity and are set in the policy. To give one concrete example from the U.S. State Department's 2026 review: construction projects below USD 15 million are closed to foreign investment, while larger projects need ministry approval and must meet investment requirements. Do not rely on a single "minimum investment" figure quoted online. Check the current requirement for your specific activity.

The approval process, step by step

The U.S. State Department's 2026 Investment Climate Statement describes foreign investment approval in the Maldives as a four-stage process. In outline:

1. Application. You submit the foreign investment application with details of the investor, the proposed business, the investment amount and source of funds, and a business plan. Supporting documents typically include passport copies or company documents for the investor, bank references or financial statements, and a no-objection declaration.
2. Letter of no objection and conditional approval. If the ministry is satisfied, it issues a letter setting out any conditions the investment must meet.
3. Foreign investment licence. Once conditions are met, the investment is licensed.
4. Foreign investment agreement. The investor and the government sign an agreement recording the terms, including the committed investment and timeline.

After approval, you register the company (or re-register the branch) on the Business Portal, as described in our guide to registering a company in the Maldives.

Fees and timelines

The ministry's published guidelines state that foreign investors pay an administrative fee of USD 5,000 to the Maldives Inland Revenue Authority (MIRA). Company registration fees and later licence fees are separate.

On timing, the same guidelines give a range of about 5 to 14 working days for straightforward applications, and up to 30 working days from the date of application. The State Department's review notes that simple cases can be faster, while applications needing input from other ministries can take two to three weeks or more. Build some margin into your plans, especially if your project depends on leases or permits from other authorities.

Fees and processing targets can change, so confirm the current figures with the ministry before you apply.

Your commitments after approval

Approval comes with obligations. The most important is to actually make the investment you committed to. Investors are generally expected to bring in the agreed capital within the period set out in their agreement, and to show it in audited financial statements. Other ongoing responsibilities include:

• operating only in the approved activities;
• keeping company records and annual filings up to date with the Registrar of Companies;
• registering for tax with MIRA and filing returns;
• following the rules on employing foreign staff, including quotas and work permits; and
• notifying the ministry of major changes, such as new shareholders or a change in activities.

Money and the dollar shortage

Investors should be aware of the foreign exchange situation. The Maldivian rufiyaa is officially pegged to the US dollar, and the country has experienced a shortage of dollars for several years. The State Department's 2026 review notes continuing capital controls under the Foreign Currency Act and Maldives Monetary Authority oversight, and that the timing of remittances depends on banks' own policies. If you plan to repatriate profits or pay overseas suppliers, discuss how this will work with your bank early on. Our guide to banking and sending money abroad covers the practical side.

Land and property

Foreigners generally cannot own land in the Maldives. Investment projects usually rely on long-term leases, for example for resort islands or commercial premises, and some large projects have special arrangements. Lease terms, the identity of the landlord (government, council or private owner) and any registration requirements need careful legal review before you commit.

Joint ventures with Maldivian partners

In restricted sectors, or simply for local knowledge, many investors form a joint venture with a Maldivian partner. A joint venture company still needs foreign investment approval for the foreign share. The most important document is the shareholders' agreement, which should cover:

• who contributes what (cash, land lease, licences, expertise) and how each contribution is valued;
• how many board seats each side has and which decisions need both sides' consent;
• how profits are distributed and when;
• what happens if one partner wants to sell, or if the partners fall out (deadlock and exit clauses); and
• who holds operating licences and leases, and what happens to them if the partnership ends.

Disputes between joint venture partners are one of the most common problems foreign investors face. A clear agreement, drafted with Maldivian legal advice, is far cheaper than a dispute.

Staffing your business

Foreign-owned businesses follow the same employment rules as any other employer. You will need an employer account on the government's Xpat system, a quota for each category of foreign worker, and a work permit and visa for each foreign employee, including yourself if you will work in the business. The government also encourages employment of Maldivians, and your business plan's local hiring commitments can matter in the approval process. See our guide to employing staff in the Maldives.

Tax for foreign-owned businesses

Once registered, your company is taxed in the Maldives like any other business. It needs a taxpayer identification number from MIRA, must file income tax returns on its profits, and may need to register for GST (businesses supplying tourism goods and services must register whatever their turnover). Payments made abroad, such as fees to an overseas parent company, can attract withholding tax. Ask a Maldivian accountant to explain your obligations before you start trading, especially if the investment involves related companies overseas.

Common reasons for delays

• Incomplete documents, especially missing certifications for overseas company papers.
• An unclear source of funds. Be ready to show where the investment money comes from.
• Business activities that don't match the policy, or descriptions that are too vague to classify.
• Projects needing other approvals, such as land, environmental or tourism permits, which bring in other ministries.

Practical tips for a smoother application

• Check the sector rules before anything else. It saves the cost of preparing an application for a closed activity.
• Write a clear business plan. Explain what you will do, where, how many people you will employ (including Maldivians), and how the investment will be funded.
• Prepare certified documents early. Company documents from abroad may need notarisation or legalisation, which can take weeks.
• Line up your resident director. Every Maldivian company needs at least one director who lives in the country.
• Use local advisers for complex cases. Joint ventures, restricted sectors and projects involving land benefit from a Maldivian law firm's experience.