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 Maldives
Islands
Business
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| GENERAL
INFORMATION FOR INVESTORS IN THE MALDIVES |
Note:
Following guidelines are from the web site of Foreign
Investment Services Bureau (FISB) 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:-
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Are Capital intensive
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Enhance transfer of technology
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Introduce new skills
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Are Environmentally friendly |
| Incentives
offered =No income taxes, corporate taxes or property taxes.|Back
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Exemption of import duty on raw material
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Right to 100% foreign ownership
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Legally backed investment guarantee
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Overseas arbitration of disputes
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Freedom to repatriate profits and capital proceeds
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Long term lease of land for large scale projects
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Freedom to use foreign managerial, technical and unskilled workers.
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No exchange restrictions |
| Clear
guidelines, laws and regulations are set up to highlight.|Back
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Term of investment
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Duty exemption
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Dispute settlement
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Levies and fees |
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 resources 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:
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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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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.
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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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