One of the growing nations located in South Asia, Maldives is about 1,000 kilometres from the Asian continent and southwest of Sri Lanka and India.
Since the last decade, the concept of offshore has been widely accepted by business investors and owners to double their returns.
Just like the other offshore destinations, the Maldives is one of the growing offshore destinations in the world. Gained its independence in 1965, the political system of Maldives has been described as the “Unitary Presidential Constitutional Republic”.
So, if you are planning to set up your business in the offshore segment, you can count on the Maldives.
Offshore Company Setup in the Maldives
Although tourism is one of the major driving segments in the zone, yet, the offshore segment has successfully established itself.
Known for the flexible business environment and no-hassle taxation process, the Companies Act of Maldives allows complete flexibility to the business owners to set up a company in the Maldives.
Key Considerations for Setting Up Company in the Maldives
A few of the major considerations that are to be considered while incorporating a company in the Maldives include:
The offshore company setup process in the Maldives demands the presence of company shareholders. A minimum of two shareholders are required to complete the basic requirements.
The selected business shareholders can be of any nationality.
The maximum number of shareholders for offshore company formation in the Maldives stands at 50.
Just similar to the presence of shareholders, the company formation in the Maldives also demands the business entity to hold a minimum of two directors.
To be on the safer side, it is proposed to appoint three directors to avoid tie votes on the essential matters.
The appointed directors will form the Board of Directors in order to manage the Company.
A company secretary must also be chosen to represent the Company to third parties and also to file all necessary documents that are required by the government.
When it comes to opening an offshore business in the Maldives, the government authorities prefer to proceed ahead with established business consultants.
Proceeding alone might give rise to trust issues, whereas joining hands with a registered agent can help you settle the tasks hassle-free.
The payment of business capital is a vital step in the initial phase of company setup. The availability of capital also determines the type of business structure that you can proceed ahead with.
The minimum authorized capital for the company formation in the Maldives is 2,000 MVR.
Knowledge of Corporate Tax
Being a business owner, you need to hold an idea of corporate tax and accounting. These two domains are the core pillars of any business.
The corporate tax rate in the Maldives stands at 15% and does not have the concept of personal tax.
It is to be noted that the annual tax returns are needed to be filed with the government’s tax authorities.
Although the offshore destinations don’t demand the presence of financial records, yet, it becomes beneficial if you can maintain your business books in the best possible way.
Keeping a track of the records will help you to monitor the progress of the company at any given point in time.
The business meetings also play a major role while setting up an offshore company in the Maldives. The company shareholders have the flexibility to conduct the meetings in any part of the world.
How to Start an Offshore Company in the Maldives?
Since you have got a clear idea of the key parameters that are required to be focused on while starting a business in the Maldives, now let’s have a look at the company setup process.
Duly fill out the application form
The very first step is to fill in the application form with the required details of the company shareholders and directors.
Make sure to cross-check the filled information while submitting the form.
Upload the company documents
In the next move, you need to be handy with the business papers that are to be submitted to the government authorities.
The documents required to set up an offshore company in the Maldives include:
- Identity proof of the appointed directors and shareholders
- Address proof of the appointed directors and shareholders
- Well-drafted business plan
- Bank reference letter, etc.
Get the required approvals
Once the documents have been submitted for approval, make sure to pay the relevant fees to complete the process.
The respective approvals are to be obtained from the respective government authorities. Once the approvals are obtained, the business registration process gets completed.
Proceed for the additional services
After setting up a company, you need to avail yourself of the respective additional services like accounting and auditing.
These are core pillars of any business and will help you to maintain your business smoothly. A few of the other essential services include:
- Offshore bank account
- Accounting and audit services
- Intellectual property service
- Business license
- Corporate secretarial service
- Nominee director service
We can finally see that the registration of offshore companies in the Maldives includes a few steps. However, carrying out the processes is not feasible if one has got little or no knowledge on the company formation on the same.
Are you wondering how to proceed ahead? Worry not, your guide is just here!
Business Setup Worldwide, one of the top ten consultants in Dubai who has been a helping hand to numerous business minds to set up their offshore entities globally.
Our expert's team holds complete knowledge of the company formation proceedings and can guide you at every step.
If you hold any doubt, feel free to speak to our advisors. Contact us now-we’d be glad to assist!
Can a single person register an offshore company in the Maldives?
Which act grants offshore financial services in the Maldives?
The Special Economic Zone Act (2014).
What are the areas considered during the license applications in the Maldives?
- Capital fortitude
- The strength of the business strategy
- Directors, management, and critical shareholders' qualifications, experience, and appropriateness.