ABOUT MALDIVES

 Amongst all the countries in South Asia, the Maldives, officially the Republic of Maldives, is an independent island nation located in the Indian Ocean. Comprising a double chain of 26 coral atolls, it is globally renowned for its stunning natural beauty, pristine beaches, and luxurious tourism industry. As one of the world’s lowest-lying nations, it faces significant vulnerabilities to climate change and rising sea levels. Malé is the capital and most populous city, serving as the central hub for commerce, administration, and transportation. According to the World Bank, the Maldives is classified as a High-Income Economy, with tourism being the primary driver of its economic prosperity.

The currency of the Maldives is the Maldivian Rufiyaa (MVR). As of today’s exchange rates (June 2025), 1 Maldivian Rufiyaa is approximately 5.55 Indian Rupees. The population of the Maldives is estimated at approximately 526,000 in 2024, making it one of the smallest sovereign states in Asia by population. The Maldives is a landlocked country and shares maritime borders with India and Sri Lanka. The official language is Dhivehi. English is widely spoken, especially in the tourism industry, government, and business sectors, reflecting its importance for international communication. Islam is the official religion of the Maldives, and adherence to Islam is a constitutional requirement for citizenship. Velana International Airport (MLE) in Malé is the main international gateway, connecting the islands to the rest of the world. The Malé Commercial Harbour is the primary commercial seaport, vital for importing goods.

The standard corporate income tax rate in the Maldives is 15% on taxable profits. The Maldives actively promotes foreign direct investment (FDI) to diversify its economy and enhance existing sectors. Investment incentives are administered primarily by the Ministry of Economic Development and Invest Maldives. Key incentives and features of the investment climate include:

• Tax Exemptions: For certain investments, particularly those in designated Special Economic Zones (SEZs) or strategic development projects, including tourism, infrastructure, and fisheries.
• 100% Foreign Ownership: While some sectors or project types may require joint ventures or local participation, 100% foreign ownership is generally allowed, especially for significant investments (e.g., above USD 5 million) in sectors like resorts.
• Long-Term Leases: Land for investment, particularly for resorts, can be leased for extended periods, typically up to 99 years.
• Repatriation of Profits: No restrictions on the repatriation of earnings or profits.
• Customs Duty Exemptions: For imported machinery, equipment, and raw materials for approved projects. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in the Maldives involves registering with the Ministry of Economic Development. Common legal structures for foreign investors include a Private Limited Company or a Branch of a Foreign Company. While the Maldivian legal system is largely based on Islamic Sharia and English common law, efforts are continuously made to enhance the predictability and transparency of the investment environment. Investors making substantial contributions, particularly in tourism and related infrastructure, often receive favorable terms and agreements.

In case an investor is planning to establish a Private Limited Company or a corporate business setup in the Maldives, Opesh Group will be helping you in taking the right decision for setting up your business in the Maldives and we will also guide you about how to follow the procedure while formulating your company in the Maldives.

Types of Business which can be started in the Maldives:

• Tourism & Hospitality: This is the dominant sector. Opportunities include developing and operating luxury resorts, guesthouses, liveaboards, watersports centers, and related tourism services.
• Fisheries & Aquaculture: Sustainable fishing, fish processing (canning, freezing, packaging), and aquaculture development.
• Logistics & Maritime Services: Leveraging its strategic location as a transshipment hub for goods in the Indian Ocean, including port services, warehousing, and shipping.
• Real Estate & Infrastructure Development: Development of new resorts, mixed-use properties, housing projects, and essential infrastructure (e.g., energy, water, waste management).
• Renewable Energy: Investment in solar power, waste-to-energy solutions, and other renewable sources to reduce reliance on imported fossil fuels.
• ICT & Digital Services: Developing digital infrastructure, e-commerce platforms, and tech solutions to support the tourism and other sectors.
• Waste Management: Solutions for sustainable waste management and recycling are crucial for the fragile island environment.

Advantages of Starting Business in the Maldives:

• High-Growth Tourism Sector: A globally recognized luxury tourism destination with consistent demand.
• Strategic Location: Positioned along major East-West shipping routes in the Indian Ocean.
• Stable Economy: Driven by tourism, offering relatively high GDP per capita.
• Pro-Investment Policies: Government actively seeks FDI and offers various incentives.
• No Foreign Exchange Restrictions: Freedom to repatriate earnings.
• Unique Market Niche: Opportunity to cater to high-net-worth individuals in the tourism sector.
• Developing Infrastructure: Ongoing projects to enhance connectivity and services.

Imports & Exports: The Maldives has a significant trade deficit due to its reliance on imports for nearly all goods.

Major items which are exported from the Maldives:

• Fish (fresh, chilled, frozen, processed, especially tuna)
• Scrap Metal (limited)
• Engines (limited)

Major items which are imported in the Maldives:

• Petroleum Products (fuel for energy and transport)
• Foodstuffs (cereals, vegetables, dairy, meat, fruits)
• Machinery and Electrical Equipment
• Construction Materials (cement, iron and steel, wood)
• Vehicles
• Pharmaceutical Products
• Pre-fabricated Buildings
• Clothing

Major items traded between the Maldives and India (as of June 2025): India is a crucial trading partner for the Maldives, supplying essential goods and services.

• Exports from the Maldives to India: Primarily Fish and fish products (e.g., tuna, skipjack, dried fish), and some scrap metal.
• Imports in the Maldives from India: Dominated by Foodstuffs (vegetables, fruits, cereals, dairy products), Construction Materials (cement, iron and steel), Pharmaceuticals, Machinery and Equipment, and various Consumer Goods.

Manufacturing: Manufacturing in the Maldives is very limited due to its small land area, limited natural resources, and focus on the services sector (tourism).

• Fish Processing: The primary manufacturing activity, involving the processing, canning, and freezing of fish for export.
• Light Manufacturing for Tourism: Production of handicrafts, souvenirs, and some resort-related items.
• Boat Building: Traditional boat (dhoni) building and repair. The sector plays a minor role in the overall economy.

Mining: The Maldives has no significant mineral resources and therefore, virtually no mining sector. Its geological composition as an archipelago of coral atolls means there are no land-based mineral deposits to exploit. The primary “resource” is its marine environment and white sand, which are carefully managed due to environmental sensitivities and the tourism industry’s reliance on them.

• GDP = $7.2 billion (nominal, 2024 est. IMF)
• GDP Growth = 5.2% (2024 forecast, IMF); 6.5% (2025 forecast, IMF) Note: Growth is highly dependent on tourism recovery and global economic conditions.
• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. In its last edition (2020), the Maldives ranked 147th out of 190 economies. While efforts have been made to simplify procedures, challenges remain in areas such as dealing with construction permits and getting credit. The government continues to focus on improving the investment climate, particularly for tourism and related infrastructure projects.
• GDP per Capita = $17,287 (nominal, 2024 est. IMF)

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