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| GENERAL
INFORMATION FOR INVESTORS IN THE MALDIVES
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Why
invest in Maldives?
Foreign investors
are offered a transparent policy environment.
The law on foreign
investments (Law 25/79) guaranttees the security
of investments. In addition our liberal trade
environment, dynamic private sector and development-oriented
legal structure all contribute to a conducive
climate for trade and investment. The Maldives
has a strong record of political stability resulting
from homogenous nature of our society with one
culture, one religion and one language. Thus the
ethnic and political unrest that can disrupt economic
activities elsewhere are non-existent in the Maldives.
The country is an
income tax and corporate tax haven. The vast untapped
potential in natural marine recources and the
young, energetic and trainable workforce are strong
inducements to invest in the Maldives, as has
been proven by many successful foreign investors.
The number of foreign
companies investing in the Maldives has been increasing
every year. Their services range from management
and accounting services, air transport, resort
management to manufacturing.
The Maldives will
continue to attract and promote foreign investment
in to the country.
There will be an
emphasis on promotion of investment activities
that:-
- · Are Capital
intensive
- · Enhance transfer
of technology
- · Introduce new
skills
- · Are Environmentally
friendly
Incentives
offered =No income taxes, corporate taxes or property
taxes.|Back to top|
- · Exemption
of import duty on raw material
- · Right to 100%
foreign ownership
- · Legally backed
investment guarantee
- · Overseas arbitration
of disputes
- · Freedom to
repatriate profits and capital proceeds
- · Long term
lease of land for large scale projects
- · Freedom to
use foreign managerial, technical and unskilled
workers.
- · No exchange
restrictions.
Clear
guidelines, laws and regulations are set up to
highlight |Back to top|
- · Term of investment
- · Duty exemption
- · Dispute settlement
- · Levies and
fees
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| Guidelines
-A |Back to top|
Natural resources
and technical know-how in the Maldives are extremely
limited, Therefore, in order to improve the economic
and social infrastructure of the country, foreign
collaboration is needed to utilize the local labour
and the available 1esources along with potential
foreign resources to transform the economic strength
through capital investment and utilization of
technology, expanded knowledge and efficiency,
and improved organizational and managerial ability.
Investors are invited to utilize the prevailing
opportunities by exploring the possibility of
initiating mutually beneficial investment projects.
However, the security of the investment, exemption
or relief of taxes and other facilities are provided
and guaranteed to the investors as stipulated
in the government Act relating to "Foreign
Investment in the Maldives."
Preference will be given to investment projects
which satisfy the following: |Back to top|
1. If the investment project requires local employees
and labour to be trained with the aim of employing
them at technical, skilled and management levels.
2. If the proposed investment utilizes local materials
which are either available naturally or which
could be produced locally.
3. If the products of the proposed investment
are locally marketable at competitive prices and
result in the reduction of imports of such commodities.
4. If the investment makes provision to add on
to the economic and social infrastructure of the
country.
5. If the proposed is one that cannot be started
by local investors because of:
1. the size of the investment required and/or
2. lack of technical expertise.
6. If the industry is to be located in the outer
atolls rather than in the vicinity of Male'.
Please note that our above mentioned terms are
not very rigidly structured and your proposal
will be duly considered. |
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Guidelines
-B |Back to top|
Project
approval
(a) The Ministry of Trade and Industries will
appraise the technical and financial aspects
of the projects in consultation with other concerned
Departments and Ministries of the Goverment.
The decision of the Government as to the application
will be made and passed on to the applicant
as soon as possible. The length of time required
to reach a decision in respect of a licence
application depends largely on the completeness
and adequacy of the supporting data.
(b) Investors are required to assess local conditions
relating to the investment and submit to this
Ministry a comprehensive feasibility report,
draft copy of the Memorandum and Articles of
Association together with a recognized bank
reference and the completed form issued to the
investor by this Ministry.
(c) When an investment proposal is submitted
to this Ministry for consideration, the proposed
capital of the said investment should be clearly
stated in a convertible currency acceptable
to this Ministry.
(d) If the Government's decision is favourable
to the project, a licence is issued in the name
of the applicant which remains valid so long
as the project is implemented within a period
of six months, (or within some other period
of time, specifically stated in the licence,
as special circumstances may warrant).
(e) Under certain circumstances, so that a prospective
investor may be assured of a licence after he!
she has incurred the expenses of making feasibility
and technical studies needed to obtain a licence.
the Government v ill issue a letter of Intent.
(f) Besides the information called for by the
application, the applicant should include in
a covering letter. any other information relevant
to the proposed venture such as the terms and
conditions of foreign participation (if any),
or a draft agreement between a foreign investor/s
and Maldivian share participant/s.
(g) The holder of an industrial licence is required
to register his/her company within 7 days of
issuance of the licence, with the Ministry of
Trade, and Industries, Male'.
(h) The investor/s approved for a certain project
is/are required to maintain 1-9 percent of the
approved capital with the local bank agreeable
to the Ministry of Trade and
Industries,
prior to the commencement of his/her/their investment
project. This deposit base should grow to 25
percentage of the approved capital within 1
year of operations, or a bank guarantee to cover
this difference of 15 percent would suffice.
(i) Prior to the commencement of the approved
investment project in the Maldives, investor(s)
is /are required to sign an agreement with the
Ministry of Trade and Industries.
(j) Of the assets (cash and/or materials), at
least 75% must be of foreign origin i.e. must
be imported.
Book-keeping and returns
|Back to top|
1. By or on behalf of the management o f the
investment corporations, companies and foundations
carrying on business in the Maldives for profit,
must keep the books in a way to clearly reflect
the expenditures and revenues.
2. The book-keeping referred to should be maintained
in terms of Maldivian Rufiyaa, United States
Dollars or in any foreign currency acceptable
the Ministry of Trade and Industries. It must
contain a continuous record of cash on hand
as well as regularly kept and up to date statement
of debtors and creditors. At the end of every
financial year or, failing this, of every calendar
year, the books should be closed by drawing
up the relative balance sheets and profit and
loss statements.
3. The books and the supporting documents must
not be destroyed without prior permission of
the Ministry
4. The Books and the supporting documents should
be kept in Dhivhei or English Language.
5. If so required, the management of the investment
is obliged. for auditing purpose, to show the
book-keeping and supporting documents to the
authorised officials of the Ministry of Trade
and Industries.
6. He who willfully submits or presents for
inspection a false or falsified Statements(s)
document(s), as if it were genuine and unfalsified,
to the authorised officials of the Ministry
of Trade and Industries, will be dealt with
and referred to the Maldivian Court of Law.
| Public
Holidays in the Maldives 2004 |Back to top| |
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01
January - New Year
Day
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31
January - Hajj Day
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01
February - Alha Eid
Day
- 02
February - On the occassion
of Alha Eid Day
- 03
February
- On the occassion of Alha Eid
Day
- 04
February - On the occassion
of Alha Eid Day
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21
February - Islamic
New Year
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21
April - National Day
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02
May - Prophet Muhammad's
Birthday
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21
May
- the Day Maldives Embraced
Islam
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26
July - Independence
Day
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27
July - On the Occassion
Independence Day
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15
October - First day
of Ramazan
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03
November - Victory
Day
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11
November - Republic
Day
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14
November - Fith'r Eid
Day
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15
November - On the Occassion
Fith'r Eid Day
- 16
November - On the Occassion
Fith'r Eid Day
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