President Dr. Mohamed Muizzu has ratified the 2nd Amendment to the Business Registration Act (Act No. 18/2014). The amendment, which was passed by Parliament during its 32nd sitting of the second session on August 22, 2024, introduces significant procedural changes for foreign entities seeking to invest or conduct business in the Maldives.
Under the new amendment, foreign entities are now required to re-register as a company or partnership in the Maldives under the Companies Act and obtain approval for their investments in accordance with the Foreign Investment Act.
Notably, the amendment allows foreign investors to participate in securities authorized under the Maldives Securities Act (Act No. 2/2006) without needing to fulfill the re-registration and approval requirements. However, it stipulates that if a foreign investor intends to acquire equity, the total shares purchased and owned in a single transaction must not exceed 10% of the company's total shares.
With its ratification, the amended Act has been published in the Government Gazette and is now in effect.