FAQ: Legal Questions
Q1: What is the primary legal framework governing foreign investments in the Maldives? A1: The primary legal framework for foreign investments in the Maldives includes the Law on Foreign Investments (Law: 25/79) and the Companies Act of the Maldives (Law: 10/96). These laws provide the basis for foreign investment activities and company operations in the Maldives.
Q2: Can foreign investors own land in the Maldives? A2: Foreign investors cannot own land outright in the Maldives but can obtain long-term leases. The government provides options for leasing land for investment projects, particularly in tourism and industry sectors.
Q3: Are there any incentives available for foreign investors? A3: Yes, foreign investors are offered incentives such as the right to 100% foreign ownership, legally backed investment guarantees, provision for overseas arbitration of disputes, long-term contractual agreements, and freedom to use foreign managerial and technical workers.
Q4: What are the regulations regarding repatriation of profits and earnings for foreign investors? A4: There are no restrictions on the repatriation of earnings or profits. The Maldives maintains a liberal approach to foreign exchange and allows the free transfer of funds in and out of the country.
Q5: What visa requirements exist for foreign investors and workers in the Maldives? A5: Foreign investors can enter the Maldives on a 30-day tourist visa to conduct investment research or meetings. For longer stays, work permits and appropriate visas are required for foreign employees. The Department of Immigration and Emigration provides detailed guidelines and requirements.
Q6: How are disputes resolved for foreign investors in the Maldives? A6: The Maldives allows for overseas arbitration of disputes as part of its commitment to providing a secure legal environment for investors. Additionally, the Maldives judiciary system offers mechanisms for dispute resolution.
Q7: What are the requirements for registering a company in the Maldives? A7: To register a company, investors must submit the necessary documentation to the Ministry of Economic Development, including company bylaws, shareholder details, and business plans. Specific guidelines and forms are available on the Ministry’s website.
Q8: Are there specific regulations for Duty-Free Businesses in the Maldives? A8: Yes, there are specific regulations governing Duty-Free Businesses, which outline the licensing requirements, operational guidelines, and tax duties applicable to such businesses.
Q9: What are the legal requirements for fishing in the Exclusive Economic Zone (EEZ) of the Maldives? A9: Regulations for issuing licenses to fish in the EEZ of the Maldives detail the application process, types of permissible fishing activities, and environmental compliance requirements.
Q10: How can I ensure that my investment complies with Maldivian laws and regulations? A10: Investors are encouraged to consult with legal experts and the Maldives Investment Agency to ensure that all aspects of their investment comply with Maldivian laws and regulations. The Agency provides guidance and assistance in navigating the legal framework.