Corporate Law at Maldives
Sure! Here’s an overview of Corporate Law in the Maldives:
Corporate Law in the Maldives: Overview
The corporate legal framework in the Maldives is less extensive compared to larger jurisdictions but is governed mainly by:
The Companies Act (Law No. 10/96)
The Business Registration Act
Other relevant laws and regulations issued by the Ministry of Economic Development and related authorities
The Maldives’ corporate laws focus on company formation, governance, and regulation of business activities in line with the country’s developing economy.
Key Features of Corporate Law in the Maldives
Types of Companies:
Private Limited Companies
Public Limited Companies
Sole Proprietorships and Partnerships (regulated separately)
Foreign companies may operate through branches or subsidiaries.
Company Formation:
Companies must register with the Registrar of Companies under the Ministry of Economic Development.
Required documents include:
Memorandum and Articles of Association
Details of shareholders and directors
Proof of registered office
There is a minimum capital requirement for public companies but generally flexible for private companies.
Corporate Governance:
Companies must have at least two directors.
Directors are responsible for managing company affairs and must act in the best interest of the company.
General meetings of shareholders are required for key decisions.
Shareholder Rights:
Rights include voting, dividend distribution, and access to company records.
Protection against oppressive conduct is recognized but less codified compared to larger jurisdictions.
Compliance and Reporting:
Annual returns and financial statements must be submitted.
Companies are required to comply with tax and labor laws.
Foreign companies need approval to operate and must comply with local laws.
Foreign Investment and Companies:
The Maldives encourages foreign investment but with regulations to control foreign ownership in certain sectors.
Foreign entities must register branches or subsidiaries and obtain licenses.
Recent Trends and Context
The Maldives is actively working to improve its business environment and legal framework.
Emphasis on tourism and related sectors drives corporate regulation updates.
Digitalization of registration and compliance processes is gradually improving.
If you want, I can help with:
Specific registration procedures and documents
Governance requirements for directors and shareholders
Foreign company operations and investment rules
Recent legal reforms or sector-specific regulations
RELATED Blog
0 comments