As long as there is a foreign investor, no matter the percentage of shares, the investment will be considered as a foreign investment and would need to be registered at MED.  Activities related to any sector apart from Tourism, would be registered at MED.

 

PROCEDURE

Possible options for establishing foreign investments in the Madives:

Foreign investors may choose, either to set up an investment wholly owned by foreigners or form joint ventures with Maldivian Nationals or companies registered in the Maldives. As such foreign investments may enter the Maldives under the following THREE options

A decision on all foreign investment proposals received by Invest Maldives, which meet the conditions, stated in Option I will be made and communicated to the investor within 10 working days, upon submission of all the relevant documentation listed below

A decision on all foreign investment proposals received by Invest Maldives, which meet the conditions stated either in Option II or Option III will be made and communicated to the investor within 30 working days, upon submission of all the relevant documentation listed below.

 

Positive List

List of investments approved by the Government.

1. Financial consultancy
2. Auditing services
3. Insurance services
4. Water sports activities
5. Commercial diving (salvage)
6. Domestic air transport services 
7. Catering services for airlines
8. Big Game fishing
9. Technical support services i.e. photocopies, elevators, ATM machines etc
10. Manufacturing of garments
11. Water production, bottling and distribution
12. Consultancy inpublic relation, editorial, advertising and translation services
13. Packing and distribution of cement
14. General Sales Agency , Passenger Sales Agency and Cargo Sales Agency for airlines and shipping lines
15. Spa operations and management
16. Water treatment plant
17. Boat building
18. Software development and relatedsupport services
19. Domestic maritime ferry services
20. Financial leasing services
21. Fish processing activities
22. Traditional medical services
23. Production of underwater photography, videography and post cards
24. Block ice making
25. Speciality Restaurants
26. Professional business valuation services
27. Flying School
28. IT System integration and implementation services

 
Note : Approvals for investments on the “positive list” are subject to relevant regulatory approvals, where applicable.

  

DOCUMENTS TO BE SUBMITTED WITH THE FOREIGN INVESTMENT APPLICATION FORM

1. If any of the shareholders of the investing company is an individual, please submit a photocopy of the passport data page, and the permanent address.
2. If any of the shareholding of the investing company is a legal entity, other than a public company, please submit the photocopy of the passport data page and the permanent address of each of the share holders of the legal entity.
3. Photocopy of passport of each of the shareholders of the proposed investing company.
4. Bank Reference or a Reference letter from a reputable bank for each of the shareholders of the proposed investing company.
5. If the investing entity is a company, a Resolution of the Board of Directors of the Company, confirming their decision to invest in the proposed project.
6. Project feasibility report including:
   • Details of the main components/ activities of the proposed project.
   • Projected financial statements including the Balance Sheet, Profit and Loss Account and the Cash Flow Statements for the first 5 years of operations.
   • Feasibility indicators, including NPV, IRR, Payback period.
   • The main assumptions underlying the financial projections, including cost, revenue, market and other non- financial assumptions, if any.
   • Phasing plan for the investment detailing the phasing of the main capital/ infrastructure investments.
   • Financing plan for the investment including details of debt & equity financing
   • HR Plan including:
     • Labour requirement for commencing operations under the investment with the breakdown of local and foreign labour classified by occupation and the details of wages and benefits accruing to labour;
     • Localization plan detailing proposed training for local labour and a replacement schedule for foreign labour.
7. Draft of the Articles of Association and the Memorandum of Association of the entity proposing to undertake the investment.
8. Letter of Authority or Power of Attorney for Contact Person (if applicable).
9. A copy of the signed Joint Venture agreement between the JV partners proposing investing in the Maldives. 

• If approved, a letter and a draft of the FI Agreement would be given to the investors and than they register the company.
• After registering they submit the documents requested in the letter with their comments for the FI Agreement.
• Once agreed on the terms of the agreement, proceed to signing the agreement.

FEES

- Administrative fee of USD2000 have to be paid every calendar. First payment being made before signing the FI agreement.

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.