Incentives and Costs

Incentives for foreign investors

1. Right to 100% foreign ownership.
2. Legally backed investment guarantee.
3. Provision for overseas arbitration of disputes
4. Long term contractual agreements and long term lease of land
5. Freedom to use foreign managerial, technical and unskilled workers.
6. No foreign exchange restrictions.
7. No restrictions on the repatriations of earnings or profits.
* The application of some of the above incentives is subject to specific guidelines described elsewhere in this website

Cost of Doing Business

The following fees are to be paid to the Registrar of Companies at the time of incorporation of a Company in the Maldives.
1. Annual fee USD 156 (approx)
2. Stamp fee USD 39 (approx)
3. Company registration fee; depends on the authorized registration fee capital of the Company (Minimum authorized capital of USD 156 [approx.] is required by Law)
4. All foreign investments incur an administrative fee of USD 2,000.
Cost of re-registering a Company in the Maldives
Re-registering a Company resident overseas in the Maldives is free

Royalty on Foreign Investments

Foreign investments registered with the Invest Maldives are required to pay an annual royalty to the government, as per the following schedule:

Foreign investment entities whose ownership is at least 51 percent held by Maldivians or wholly owned Maldivian entities incorporated in the Maldives, are required to pay an annual royalty equivalent to 1.5 percent of Gross Turnover or 7.5 percent of Net Profit, whichever is greater.
OR
Foreign investment entities, in which, less than 51 percent of the ownership is held by Maldivians or wholly owned Maldivian entities incorporated in the Maldives, are required to pay an annual royalty equivalent to 3 percent of Gross Turnover or 15 percent of Net Profit, whichever is greater.

Entry Permits and Visa Requirements

There is no requirement to obtain a visa in advance. A valid passport and health documents are the only travel documents required to enter the Maldives. All visitors receive a 30-day free tourist visa on arrival. Tourist visas can be extended, if need be, by lodging an application to the Department of Immigration and Emigration. A charge of approximately US$ 60 is levied on tourist visa extensions. Firearms, ammunition, narcotic drugs and pornographic materials are prohibited items and should not be brought into the Maldives.

T hose intending to work in the Maldives must acquire a work permit, issued by the Ministry of Higher Education, Employment and Social Security. Employers intending to employ foreign nationals in the Maldives are required to apply for a work permit number prior to the prospective employees’ arrival in the Maldives. A completed work permit application is processed within a period of one to three working days. Those intending to invest in the Maldives may visit the Maldives on a tourist visa and may carry out any information search and work relating to the approval and set up of the foreign investment in the Maldives. Once an investment is approved by the Government, all foreign employees recruited for the operations should follow the normal process of obtaining a work permit as described above.

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