December 21, 2024
INCORPORATION OF LIMITED LIABILITY COMPANY (“LLC”) IN MALDIVES
INTRODUCTION
The Maldives, a tropical paradise renowned for its pristine beaches and crystal-clear waters, is also an attractive destination for businesses. Setting up a Limited Liability Company (“LLC”) in the Maldives can be a gateway to a vibrant market and offers many benefits for entrepreneurs and investors.
A Maldives LLC offers foreigners total ownership with limited liability and a business profit tax rate of 5% on their earnings from outside of the country. The LLC is the preferred business structure for foreigners looking to establish a company in the Maldives.
WHY CHOOSE MALDIVES LLC?
A Maldives LLC offers several benefits. Foreigners can own all the shares of an LLC, and shareholder liability is limited to contributions to share capital. Business profits tax is 5% and there is no personal income tax. Although U.S. taxpayers and others taxed on worldwide income are required to report all income to the government, The current minimum equity is $130. (a minimum capital of MVR 2000)
PROCESS OF REGISRATION
- Under the Companies Act 1996, all new companies must be registered with the Ministry of Economic Development, known as the “Registrar”.
- To register a new LLC, all required documents must be submitted to the Registrar of Companies. These documents include a name search response form. Official application form, copy of the memorandum and articles of association of the company as well as a letter of acknowledgment from the company secretary and managing director.
- The approval process by the registrar can take up to a week.
MALDIVES LIMITED LIABILITY COMPANY (LLC) NAME
- The first step in setting up a company in the Maldives is to choose a unique name and reserve it.
- The Registrar of Companies must approve the selected name before an application to register can be made.
- LLC’s are called “Private Limited Companies” and use the suffix of: “Pvt Ltd” where either the complete term or the suffix is to be used at the end of the company name.
THE BASIC INCORPORATION REQUIREMENTS
- The registered office must be in Maldives.
- Every private company must appoint at least two directors
- A resident director must be appointed.
- Every company must have a Memorandum and Articles of Association
- A brief overview of the company’s business plan
- Evidence of paid-up capital
- A statement declaring the company’s limited liability status for one of its members
- Details of the shareholders, including their names, addresses, and the number of shares they hold
ANNUAL FILING AND COMPLIANCE REQUREMENTS
- Annual report of the company
- Annual financial statements of the company
CONCLUSION
Incorporating an LLC in the Maldives can be a worthwhile endeavor for businesses looking to make their mark in this beautiful island nation. By following the necessary steps carefully and local regulations and ask for professional advice you can form your LLC and successfully take advantage of the opportunities available in the Maldives market.
HOW WE CAN HELP?
- Our team specializes in offering complete assistance with LLC registration in Maldives. To make sure the company stays in compliance with all relevant rules and regulations, we offer continuing help and direction. We help you with every step of the LLC incorporation procedure.
- Our experts can investigate and identify any licenses, permits, or registrations needed for the client’s particular sector. we help with the application procedure and makes sure the company meets all legal requirements.
- Our team can assist you in understanding and adhering to all applicable laws and regulations. Our team of specialists offers competent legal and tax guidance.
For more information or queries, please email us at
[email protected]
Key Contact
Surendra Singh Chandrawat
Managing Partner
