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(Following guidelines
are from the web site of
FISB, Maldives)
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.
- · 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.
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