Why invest in the
Maldives?
Foreign investors are offered a transparent
policy environment. The law on foreign
investments (Law 25/79) guaranttees the
security of investments. In addition our
liberal trade environment, dynamic private
sector and development-oriented legal
structure all contribute to a conducive
climate for trade and investment. The
Maldives has a strong record of political
stability resulting from homogenous nature
of our society with one culture, one religion
and one language. Thus the ethnic and
political unrest that can disrupt economic
activities elsewhere are non-existent
in the Maldives.
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Tourism sector
attracts foreign investment in Maldives |
The country is an income tax and corporate
tax haven. The vast untapped potential
in natural marine recources and the young,
energetic and trainable workforce are
strong inducements to invest in the Maldives,
as has been proven by many successful
foreign investors.
The number of foreign companies investing
in the Maldives has been increasing every
year. Their services range from management
and accounting services, air transport,
resort management to manufacturing.
The Maldives will continue to attract
and promote foreign investment in to the
country.
There will be an emphasis on promotion
of investment activities that:-
· Are Capital intensive
· Enhance transfer of technology
· Introduce new skills
· Are Environmentally friendly
Incentives offered
· Exemption of import duty on
raw material
· Right to 100% foreign ownership
· Legally backed investment guarantee
· Overseas arbitration of disputes
· Freedom to repatriate profits
and capital proceeds
· Long term lease of land for large
scale projects
· Freedom to use foreign managerial,
technical and unskilled workers.
· No exchange restrictions.
Clear guidelines, laws
and regulations are set up to highlight
· Term of investment
· Duty exemption
· Dispute settlement
· Levies and fees
Guidelines -A
Natural resources and technical know-how
in the Maldives are extremely limited,
Therefore, in order to improve the economic
and social infrastructure of the country,
foreign collaboration is needed to utilize
the local labour and the available 1esources
along with potential foreign resources
to transform the economic strength through
capital investment and utilization of
technology, expanded knowledge and efficiency,
and improved organizational and managerial
ability.
Investors are invited to utilize the
prevailing opportunities by exploring
the possibility of initiating mutually
beneficial investment projects.
However, the security of the investment,
exemption or relief of taxes and other
facilities are provided and guaranteed
to the investors as stipulated in the
government Act relating to "Foreign
Investment in the Maldives."
Preference will be given to investment
projects which satisfy the following:
1. If the investment project requires
local employees and labour to be trained
with the aim of employing them at technical,
skilled and management levels.
2. If the proposed investment utilizes
local materials which are either available
naturally or which could be produced locally.
3. If the products of the proposed investment
are locally marketable at competitive
prices and result in the reduction of
imports of such commodities.
4. If the investment makes provision
to add on to the economic and social infrastructure
of the country.
5. If the proposed is one that cannot
be started by local investors because
of:
1. the size of the investment required
and/or
2. lack of technical expertise.
6. If the industry is to be located in
the outer atolls rather than in the vicinity
of Male'.
Please note that our above mentioned
terms are not very rigidly structured
and your proposal will be duly considered.
Guidelines -B
Project approval
(a) The Ministry of Trade and Industries
will appraise the technical and financial
aspects of the projects in consultation
with other concerned Departments and Ministries
of the Goverment. The decision of the
Government as to the application will
be made and passed on to the applicant
as soon as possible. The length of time
required to reach a decision in respect
of a licence application depends largely
on the completeness and adequacy of the
supporting data.
(b) Investors are required to assess
local conditions relating to the investment
and submit to this Ministry a comprehensive
feasibility report, draft copy of the
Memorandum and Articles of Association
together with a recognized bank reference
and the completed form issued to the investor
by this Ministry.
(c) When an investment proposal is submitted
to this Ministry for consideration, the
proposed capital of the said investment
should be clearly stated in a convertible
currency acceptable to this Ministry.
(d) If the Government's decision is favourable
to the project, a licence is issued in
the name of the applicant which remains
valid so long as the project is implemented
within a period of six months, (or within
some other period of time, specifically
stated in the licence, as special circumstances
may warrant).
(e) Under certain circumstances, so that
a prospective investor may be assured
of a licence after he! she has incurred
the expenses of making feasibility and
technical studies needed to obtain a licence.
the Government v ill issue a letter of
Intent.
(f) Besides the information called for
by the application, the applicant should
include in a covering letter. any other
information relevant to the proposed venture
such as the terms and conditions of foreign
participation (if any), or a draft agreement
between a foreign investor/s and Maldivian
share participant/s.
(g) The holder of an industrial licence
is required to register his/her company
within 7 days of issuance of the licence,
with the Ministry of Trade, and Industries,
Male'.
(h) The investor/s approved for a certain
project is/are required to maintain 1-9
percent of the approved capital with the
local bank agreeable to the Ministry of
Trade and Industries, prior to the commencement
of his/her/their investment project. This
deposit base should grow to 25 percentage
of the approved capital within 1 year
of operations, or a bank guarantee to
cover this difference of 15 percent would
suffice.
(i) Prior to the commencement of the approved
investment project in the Maldives, investor(s)
is /are required to sign an agreement
with the Ministry of Trade and Industries.
(j) Of the assets (cash and/or materials),
at least 75% must be of foreign origin
i.e. must be imported.
Book-keeping and returns
1. By or on behalf of the management o
f the investment corporations, companies
and foundations carrying on business in
the Maldives for profit, must keep the
books in a way to clearly reflect the
expenditures and revenues.
2. The book-keeping referred to should
be maintained in terms of Maldivian Rufiyaa,
United States Dollars or in any foreign
currency acceptable the Ministry of Trade
and Industries. It must contain a continuous
record of cash on hand as well as regularly
kept and up to date statement of debtors
and creditors. At the end of every financial
year or, failing this, of every calendar
year, the books should be closed by drawing
up the relative balance sheets and profit
and loss statements.
3. The books and the supporting documents
must not be destroyed without prior permission
of the Ministry
4. The Books and the supporting documents
should be kept in Dhivhei or English Language.
5. If so required, the management of
the investment is obliged. for auditing
purpose, to show the book-keeping and
supporting documents to the authorised
officials of the Ministry of Trade and
Industries.
6. He who willfully submits or presents
for inspection a false or falsified Statements(s)
document(s), as if it were genuine and
unfalsified, to the authorised officials
of the Ministry of Trade and Industries,
will be dealt with and referred to the
Maldivian Court of Law.
Note:
Following guidelines are from the web
site of Foreign Investment Services Bureau
(FISB) Maldives
If you need specific
advice please submit your queries through
our contact
us form.
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