About Investment Law in Maldives
The legal framework for investments in the Maldives is favorable, liberal, and offers a variety of investment opportunities for international businesses and investors. This framework is governed by the Maldives Foreign Investment Act and the Companies Act, which offer protection and incentives for foreign investors. The overall aim of these investment laws is to create an environment that promotes economic growth, advancement of human resources, creation of jobs, and promotion of technological innovation.
Why You May Need a Lawyer
Investing in the Maldives, like any other country, requires careful legal considerations. Navigating regulatory compliance, contract negotiations, due diligence, dispute resolution, and understanding of tax laws are instances where the expertise of a lawyer are recommended.
Additionally, to ensure the protection of your investor rights, it's essential to get legal advice on investment agreements and related contractual obligations.
An experienced lawyer can provide vital legal insights which may significantly affect the success of the investment.
Local Laws Overview
The Maldives Foreign Investment Act and the Companies Act are the primary laws governing investment in the Maldives.
Key aspects of these laws recognise foreign ownership of businesses and offer guarantees against nationalisation. It also states that disputes involving foreign investors can be taken to a competent tribune. Additionally, the tax regime in the Maldives is favourable, with no income tax on earnings.
However, the Maldivian legal system is a mixture of Sharia law and English common law, and certain industries require government approval before foreign investments can be made.
Frequently Asked Questions
What incentives are available for investors in the Maldives?
The Maldives Government encourages foreign investments by offering various incentives such as exemptions from import duties and lease rent concessions.
Are there areas where foreign investment is prohibited?
Yes, there are a few sectors where foreign investment is restricted or prohibited, such as small scale retail and wholesale trading.
Can a foreign investor own a property in the Maldives?
Yes, foreigners may acquire property in the Maldives. It is, however, subject to certain restrictions and requires permission from the government.
What are the options to resolve disputes in investment cases?
Legal disputes can be addressed through local courts or through arbitration subject to the provisions of the investment agreement.
What is the tax liability for foreign investors?
The Maldives does not impose income or profit tax on earnings from investments. However, a General Goods and Service Tax (GST) applies.
Is it mandatory to have a local partner in a foreign investment?
It is not mandatory for foreign investors to have a local partner, except in certain sectors such as tourism.
How can I start my business in the Maldives?
Businesses can be started in the Maldives by registering them with the Ministry of Economic Development.
Is the Maldives economy stable for investment?
Despite its small size, the Maldives has a relatively stable economy driven mainly by tourism, fishing, and construction.
Can a foreign investor employ foreigners in the Maldives?
Yes, but there are rules and regulations related to employing foreigners that must be observed.
What currency do businesses operate with in the Maldives?
Businesses in the Maldives operate with the Maldivian Rufiyaa (MVR), but USD is also widely accepted in the country.
Additional Resources
The Ministry of Economic Development is the chief body that handles investment-related matters in the Maldives. The Maldives Monetary Authority and the Maldives Inland Revenue Authority are also good sources of financial and taxation matters. For latest regulations, changes, incentives and other relevant news, the official Gazette of the Republic of Maldives is recommended.
Next Steps
If you need legal assistance with your investment in the Maldives, we recommend contacting a legal professional specializing in Maldivian investment law. The attorney can guide you through the investment process, verify all legal compliance, help in drafting contracts, handling disputes, and protect your rights as an investor.
Disclaimer:
The information provided on this page is intended for informational purposes only and should not be
construed as legal advice. While we strive to present accurate and up-to-date information, we cannot
guarantee the accuracy, completeness, or currentness of the content. Laws and regulations can change
frequently, and interpretations of the law can vary. Therefore, you should consult with qualified legal
professionals for specific advice tailored to your situation.
We disclaim all liability for actions you take or fail to take based on any content on this page. If you
find any information to be incorrect or outdated, please
contact us, and we will make efforts to rectify it.
