How to register a company in the Maldives: a step-by-step guide

Setting up a company is often the first real step for anyone doing business in the Maldives, whether you are a Maldivian entrepreneur opening a café in Hulhumalé or a foreign investor planning a guesthouse in the atolls. The rules changed significantly at the start of 2024, when a new Companies Act replaced the law that had been in place since 1996. This guide explains how registration works today, what you need to prepare, and the steps that follow once your company exists.

The law that applies: the Companies Act 2023

Companies in the Maldives are now governed by the Companies Act (Law No. 7/2023). It was ratified at the end of December 2023 and came into force on 1 January 2024, replacing the Companies Act 10/96. The new law modernised the system in several ways that matter to small businesses and investors:

• Single-shareholder companies are allowed. Under the old law a private company needed at least two shareholders. Now one shareholder is enough, which makes the company form practical for solo founders.
• At least one director must be resident in the Maldives. This applies to every company, including those owned entirely by foreigners.
• The company secretary should not also be a director. Plan for at least two people in the company's officer roles.
• Beneficial ownership must be recorded. Companies have to keep a register of their significant beneficial owners (the real people who ultimately own or control the company) and give this information to the Registrar of Companies.
• Foreign companies operating locally must register. An overseas business doing business in the Maldives needs to register as a company or partnership under the Act.

If you read an older guide that says you need two shareholders, or that refers to "Act 10/96", treat its procedure as out of date.

Company, sole proprietorship or partnership?

Before registering a company, check that a company is the right structure. A sole proprietorship is quicker and cheaper but is only open to Maldivian citizens, and the owner is personally responsible for the business's debts. A partnership suits two or more people working together. A company is a separate legal entity, which means the business can own property, sign contracts and take on debt in its own name, and shareholders' personal assets are generally protected. Companies are also the usual vehicle for foreign investment. We compare the options in detail in our guide to choosing a business structure in the Maldives.

What you need before you start

Gather the following before you open the application. Having everything ready is the single biggest factor in how quickly registration goes through.

• An eFaas account. eFaas is the Maldives government's digital identity login, and the Business Portal uses it. Maldivian citizens and residents can set one up; foreign founders who are not resident usually rely on a local representative or service provider who can file on their behalf.
• A proposed company name, plus one or two alternatives in case your first choice is taken or not allowed.
• Details of every shareholder and director: full names, ID card or passport copies, addresses and contact details.
• The company's constitution (the rules that govern how the company is run, sometimes still called the memorandum and articles of association). Standard templates exist, but have it checked if you have several shareholders or unusual share rights.
• A registered office address in the Maldives.
• Information on beneficial owners, if anyone other than the shareholders ultimately controls the company.
• Foreign investment approval, if any shareholder is a foreign person or a foreign company (see below).

Step-by-step: registering on the Business Portal

Registration is handled by the Registrar of Companies within the Ministry of Economic Development and Trade, and it is done online through the Business Portal at business.egov.mv. The exact screens change from time to time, but the process follows these stages.

1. Search and reserve the name

Use the business registry search on the portal to check that nobody else is already using your proposed name. Names that are identical or confusingly similar to an existing business, or that suggest a government connection, are usually refused. Once you find an available name, reserve it. A reservation holds the name for a limited period while you prepare the rest of the application, so do not reserve a name until you are close to ready.

2. Complete the incorporation application

Fill in the application with the company's details: name, registered address, business activities, share capital, shareholders and their shareholdings, directors and the company secretary. List your business activities accurately. They affect which licences you will need later, and for foreign-owned companies they must match what was approved.

3. Upload the documents

Attach ID documents for every shareholder, director and secretary, the company constitution, and any foreign investment approval documents. Scans should be clear and complete: blurred or cropped copies are a common reason for applications being sent back.

4. Pay the registration fee

A registration fee is payable when you submit. Fees are set by regulation and do change, so check the current fee schedule on the Business Portal rather than relying on figures quoted in older articles.

5. Receive the certificate of incorporation

Once the Registrar approves the application, the company is incorporated and you receive its registration certificate and number. From that moment the company exists as a legal entity, and the directors become responsible for keeping it compliant.

Extra steps for foreign shareholders

If any shareholder is foreign, the order of events is different. Foreign investors must first apply for foreign investment approval from the Ministry of Economic Development and Trade. The ministry reviews the proposed business against the country's foreign investment policy, which sets out which sectors are open, which require a local partner, and what level of investment is expected. Only after approval can the company be registered. The approval process, fees and typical timelines are covered in our guide to foreign investment in the Maldives.

Two practical points for foreign founders:

• You still need a director who lives in the Maldives. Some investors appoint a trusted local manager; others use a professional director service. Choose carefully, because directors have real legal duties and powers.
• Your registered business activities must match your approval. If you later want to add activities, you may need to amend the approval as well as the company record.

After registration: what comes next

A registered company cannot simply start trading. Most businesses need to complete several more steps, usually in this order:

1. Register with MIRA for tax. The Maldives Inland Revenue Authority issues your taxpayer identification number (TIN). Depending on what you sell and how much, you may also need to register for GST; see our guide to registering for GST with MIRA.
2. Get the licences and permits for your activity. Trading, food service, construction, tourism and many other activities need specific permits from the relevant ministry, council or authority. Tourism businesses in particular need registration with the Ministry of Tourism.
3. Open a business bank account. Banks will ask for the company's registration documents, details of directors and beneficial owners, and identity documents. Allow time: corporate accounts take longer to open than personal ones.
4. Register as an employer. If you will employ Maldivians, register them with the Maldives Retirement Pension Scheme. If you will hire foreign staff, you need an employer account on the Xpat system and a foreign worker quota; see our guide to employing staff in the Maldives.
5. Set up record keeping. Keep your registers (shareholders, directors, beneficial owners), minutes and accounts up to date from day one. Annual filings to the Registrar and tax returns to MIRA follow.

Common mistakes to avoid

• Following outdated advice. Many websites still describe the 1996 law. Check that any guide you rely on refers to the Companies Act 7/2023.
• Vague business activities. Listing activities too broadly or too narrowly can cause problems with licences, banks and, for foreign investors, the investment approval.
• Forgetting the resident director rule until the end of the process.
• Not registering beneficial owners correctly. This is now a legal requirement, and banks will ask about it too.
• Starting to trade before licences are in place. Registration is not a licence to operate in a regulated activity.

Getting help

The Business Portal has guidance and contact details for the Ministry's registration team, and the Ministry's office in Malé can answer questions in person. For anything beyond a simple Maldivian-owned company, especially foreign investment, several shareholders or a regulated activity, a local law firm or corporate service provider can save time and help you avoid mistakes that are difficult to undo later.