Regarded as the Republic of Maldives, the nation is an independent country in the Indian ocean, holding 1200 small coral islands. Gained its independence in 1965 from the United Kingdom, it is also categorized as the “upper middle class” economy by International Monetary Fund, as it dwells as a tourist spot.
Offshoring has been one of the highly adopted secured investment moves widely accepted by business investors. Like the other offshore destinations, the Maldives has also become a favourable offshore spot that business tycoons widely prefer.
Most business investors prefer incorporating a Limited Liability Company (LLC) when it comes to incorporation. However, this country offers numerous benefits and incentives to business owners who want to start an offshore business in the Maldives.
This guide will highlight the core essentials you should know while proceeding ahead.
Maldives: The Growing Offshore Spot
The Maldives is a renowned spot for dealing with offshore services. Be it expanding an existing business, opening a new company or even a bank account; it is a perfect go!
The Special Economic Zone Act of 2014 allows offshore financial services with the SEZ Board of Investment and the Maldives Monetary Authority (MMA).
The companies must obtain their respective licenses to carry out the business operations at ease.
Popular Offshore Business Segments in the Maldives
A few of the business segments that dwells in the Maldives SEZs are:
- Commercial real estate
- Building ports
- Building and operating airports
- Research & development
- Sports & Other business
Exemptions from Tax
The business segments mentioned above enjoy different types of exemptions, which includes:
- Exemption from BPT, GST
- Tax reliefs under particular guidelines
- Tax credits under special guidelines
- Exemption from WHT
Features of Offshore Business in the Maldives
When it comes to setting up an offshore business in the Maldives, there are a few features that are to be considered accordingly, which involves:
- Presence of two shareholders and two directors to incorporate a business
- The annual meetings can be held anywhere in the world
- The presence of a company secretary to carry out the respected activities
- A registered office
How to Start an Offshore Company in the Maldives?
To incorporate an offshore company in the Maldives, the following steps are to be followed accordingly:
- Decide the company name:
The first and foremost task is to decide the company name. Make sure to proceed with market research initially to get an idea and then finalize the same.
- Fill out the application form:
In the second phase, you need to fill out the required application form with the respective details of the business owners and shareholders.
- Submit the required documents:
After completing the form, you need to submit the essential documents:
- Address proof of the shareholders
- Identity proof of the shareholders
- Well-drafted business plan
- Passport and visa copies of the shareholders and business owners
- Professional reference letter
- Bank reference letter
Once the documents have been submitted, make sure to get the approvals from the government authorities.
- Open an offshore bank account
After gaining the approvals, the next move is to open an offshore bank account. Opening an offshore bank account at the initial stage helps deal with the transactions smoothly.
- Obtain the company kit
Finally, obtain the respective company kit from the advisor.
The core steps mentioned above will help you obtain the approvals at ease. However, it is essential to know that the incorporation procedure demands error-free legal documentation steps. Thus, it is advised to proceed ahead with professional business experts who can guide you accordingly at every step.
Business Setup Worldwide is one of the top offshore business consultants who can help you to incorporate an offshore company in the Maldives. Since its inception, we have been helping business investors to set up their businesses across the globe.
So, while you plan your business activities, let us complete the legal documentation process at ease. If you plan to set up an offshore company in the Maldives, we are here to assist you. For more information, feel free to get in touch with our experts-we’d be glad to help!
1. Is it possible to open an offshore company in the Maldives and open a bank account in any other jurisdiction?
Yes, the business owners have the privilege to open an offshore bank account in any other country after incorporating an offshore entity in the Maldives.
2. How long does it take to open an offshore company in the Maldives?
An offshore company in the Maldives can be incorporated within 7-9 working days.
3. Do we need to pay income tax in the Maldives?
The country of Maldives doesn’t allow business owners to pay any income tax. However, the business profit tax is 5% that is to be borne by the business owners.