Over the last two decades, the Maldives has transformed into a robust hub for international trade. By streamlining Foreign Direct Investment (FDI) and maintaining a business-friendly regulatory climate, the nation has positioned itself as a strategic gateway for global expansion. For entrepreneurs looking to scale, an offshore entity in the Maldives offers unique advantages. If you are looking to venture into this market, learn about the essentials of the Maldives offshore company, why you should choose this location, and the process of offshore company formation.
Benefits of Setting Up a Maldives Offshore Company
Aside from its strategic location, there are numerous other advantages of setting up a Maldives offshore company:
100% Foreign Ownership
The Maldives implemented a new law, the Foreign Investment Act, 2024, which brought significant changes in the country's foreign ownership regime. . Since the amendment of the act, foreigners can own 100% of the shares in numerous industries (such as tourism, information technology, logistics) without the requirement of a local shareholder.
Robust Digital and Financial Infrastructure
The Maldives has an extensive digital infrastructure, ensuring nationwide connectivity. It is further strengthened by the landing of the SEA-ME-WE 6 and PEACE subsea cables, ensuring world-class connectivity across the archipelago. On top of that, the jurisdiction has taken active steps, such as simplified integration of payment gateways, to strengthen its financial infrastructure.
Business-friendly Environment
The Maldives boasts a business-friendly environment that facilitates international trade and global business expansion without hassle. The jurisdiction has signed numerous trade treaties, particularly regarding local-currency payments and South Asian regional trade, that facilitate cross-border transactions.
Favorable Tax Regime
The Maldives taxation regime strictly depends on the residency of the firm and the owner. A firm is subject to local taxation if it meets any one of the following criteria: it is incorporated in the Maldives, or has its headquarters in the Maldives, or is managed from the Maldives. In such a case, the first MVR 500,000 of annual profit is not taxed, and any profit exceeding this amount is taxed at 15%.
Moreover, there is no tax on foreign-source income for a non-resident Maldives offshore company, provided the firm is not effectively managed in the Maldives.
Easier Foreign Direct Investment
The Maldives has made its environment more business-friendly by amending its Foreign Investment Law, 1979. Now, the jurisdiction provides strong laws that promote foreign investments, streamlined licensing, and provide clear outlines to safeguard the rights of investors.
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Popular Industries to Set Up a Maldives Offshore Company
As a non-resident, you can own 100% of the firm in the following industries by setting up a Maldives offshore company:
- Tourism
- Logistics
- Transportation
- Communication
- Education
- Healthcare
- Research & development
- Logistics and Infrastructure
- Digital economy
- Renewal energy projects
- Export-oriented manufacturing
How to Start an Offshore Company in the Maldives?
Follow the steps below to incorporate a Maldives offshore company:
Step 1: Get in Touch with a Consultant
Hiring an offshore business consultant facilitates company formation in the Maldives. The consultant guides you through the key requirements and formalities of a Maldives offshore company.
Step 2: Foreign Investment Approval
Before deciding on a name or filling out a registration form, you must apply to the Ministry of Economic Development and Trade for a ‘No Objection Letter’. You must submit your ‘Business Plan’ and ‘Financial Capacity’ proof to obtain the letter.
Step 3: Decide on the Company Name
Choosing the right company name is essential for the successful incorporation of the Maldives offshore company. The name must meet the local guidelines mentioned by the authorities.
Step 4: Fill out the Application Form
Fill out and submit the application form correctly. Include the legal name and address of the directors and shareholders, personal details of the ultimate beneficial owners (UBO), and other key requirements.
Submit the following documents along with the completed application form:
- Identity proof of the shareholders and directors
- Well-drafted business plan
- Professional reference letter
- Bank reference letter
- CV/Resume
- UBO declaration form
This can be done online on the government portal. Your consultation will assist you every step of the way.
Step 5: Wait for Approval
Once you have submitted the duly filled application form, wait for the approvals from the authorities. This may take some time as the documents undergo due diligence.
Step 6: Open an Offshore Bank Account
Once your Maldives offshore company is set up, open an offshore bank account to inject capital and facilitate cross-border transactions.
Why Choose Business Setup Worldwide (BSW)?
Business Setup Worldwide is one of the top offshore business consultants that can help you incorporate a Maldives offshore company. With over 7000 satisfied customers, we have assisted entrepreneurs and investors with company formation services in over 30 jurisdictions. Our experts have grassroots knowledge of the local requirements and ensure full adherence to the extensive formalities. For more information, feel free to get in touch with our experts-we’d be glad to help!
