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1. How to use this manual
Begin with a practical question, move to the mapped provisions, and finish by checking the current official filing route.
Subject: Orientation and legal framework
Act references: Practice orientation
Key point: Practice notes explain a workflow; the expandable statutory blocks show the relevant provisions in English.
2. Sources and hierarchy of authority
A reliable opinion distinguishes enacted law, regulations, administrative procedure and the English translation.
Subject: Orientation and legal framework
Act references: s. 1; s. 247; s. 248; s. 249; s. 250; s. 251
Key point: The official Dhivehi Gazette text of Law No. 7/2023 is the primary enacted source.
3. Scope and objectives of the Act
The Act supplies the lifecycle framework for formation, registration, operation and dissolution while aiming at simpler rules and transparent registers.
Subject: Orientation and legal framework
Key point: The Act governs formation, registration, operation and dissolution of companies in the Maldives.
4. Registration and separate legal personality
Registration creates a separate legal entity with perpetual succession, ownership of its assets and capacity to sue and be sued.
Subject: Orientation and legal framework
Act references: s. 23; s. 24; s. 25
Key point: The certificate records the company's name, number, type and registration date.
5. Transitional position and current-law check
The former Act was repealed, existing companies continued, and transition periods did not preserve inconsistent constitutional provisions indefinitely.
Subject: Orientation and legal framework
Act references: s. 241; s. 242; s. 243; s. 244; s. 245; s. 246
Key point: Companies registered under the former law continued under the new Act.
6. Company types and classification map
The Act recognises four company types, while foreign investment operates as an additional classification cutting across private and public companies.
Subject: Choosing the company vehicle
Act references: s. 3; s. 4; s. 5; s. 6; s. 7; s. 8
Key point: The four company types are private, public, government and local authority companies.
7. Private company
A private company may have one to 50 members, one or more directors and no public offer of its shares.
Subject: Choosing the company vehicle
Act references: s. 4; s. 9; s. 10; s. 11
Key point: The share capital consists of one or more shares.
8. Public company
Public-company status is tied to authority or an intention to seek authority to offer securities to the public and carries additional governance requirements.
Subject: Choosing the company vehicle
Act references: s. 5; s. 12; s. 13; s. 14
Key point: The constitution must expressly state that the company is public.
9. Government company
A government company is wholly Government-owned and formed by Presidential decree or statute, with the Companies Act operating alongside its constituting instrument.
Subject: Choosing the company vehicle
Act references: s. 6; s. 15; s. 16; s. 17; s. 18
Key point: All shares forming the capital are registered in the name of the Government.
10. Local authority company
A local authority company is formed by one or more councils for economic activities within council jurisdiction and basic-needs responsibilities.
Subject: Choosing the company vehicle
Key point: Ownership and purpose derive from the council framework in section 7.
11. Foreign investment company
Any direct or specified indirect foreign participation can bring a private or public company within the foreign-investment classification.
Subject: Choosing the company vehicle
Act references: s. 8
Key point: The classification captures a company with any share registered to a foreign individual or entity.
12. Foreign company re-registration
A foreign legal entity may operate through re-registration, but must obtain the relevant authorisation, appoint a qualified Maldives-resident agent and maintain change reporting.
Subject: Choosing the company vehicle
Act references: s. 33; s. 34; s. 35; s. 36; s. 37
Key point: A foreign company must not conduct activity in Maldives without the required registration.
13. Pre-incorporation decision map
Good formation work begins before the application: activity, ownership, control, capital, constitutional protections and regulatory dependencies must be settled first.
Subject: Formation and registration
Key point: Registration requires a reserved name, company type, address, capital/share information, constitution and director particulars.
14. Company name selection and reservation
A company name must be available, accurate, non-misleading and compliant with the Act, Regulation and business-name rules.
Subject: Formation and registration
Act references: s. 66; s. 67; s. 68; s. 69; s. 70; s. 71; s. 72; s. 73; s. 74
Key point: The name must reflect the true nature of the company and must not be misleading or prohibited.
15. Registering a private company
A private-company filing should be the final expression of an agreed ownership and governance structure, not the starting point for those decisions.
Subject: Formation and registration
Act references: s. 20; s. 21; s. 23; s. 24; s. 25
Key point: The application identifies the reserved name, type, registered address, capital and agreed initial share distribution.
16. Registering a public company
Public-company formation requires the Companies Act registration workstream and a separate securities-law workstream for any public offer.
Subject: Formation and registration
Act references: s. 12; s. 13; s. 14; s. 20; s. 21; s. 23; s. 24; s. 25; s. 171; s. 172; s. 173
Key point: The constitution expressly identifies public-company status.
17. Registering Government and local authority companies
Formation must reconcile the Companies Act application with the instrument and approvals that create or authorise the public body company.
Subject: Formation and registration
Act references: s. 15; s. 16; s. 20; s. 22; s. 23; s. 24; s. 25
Key point: A Government company may be established by decree or statute and registered under the Act.
18. Re-registering a foreign entity
Re-registration preserves the foreign entity while placing its Maldives operation, agent and information within the local register.
Subject: Formation and registration
Act references: s. 33; s. 34; s. 35; s. 36
Key point: Foreign investment authorisation precedes re-registration.
19. Foreign-company agent: role and exposure
The agent is more than a postal contact: the Act assigns responsibility to the Registrar and personal liability in respect of enforcement against the foreign company.
Subject: Formation and registration
Key point: The agent must be an individual aged at least 18, ordinarily resident in Maldives and free of the specified disqualifications.
20. Certificate and day-one corporate housekeeping
The first post-registration work should convert a certificate into a functioning, evidenced corporate organisation.
Subject: Formation and registration
Act references: s. 23; s. 24; s. 25
Key point: The certificate is evidence of incorporation and its registration date.
Ending a foreign re-registration
A foreign company applies to cancel re-registration when Maldives operations end, authorisation expires/is revoked, or the company decides to dissolve.
Explanation and core rules
The section 37 cancellation triggers are cessation, authorisation expiry/revocation and dissolution decision. Failure to apply within seven days can permit Registrar determination. A foreign company inactive for one year can also face cancellation under section 37. Cancellation does not itself answer outstanding tax, employment, creditor, licence or litigation obligations.
Step-by-step procedure
- Choose and document the cessation event/date.
- Close licences, tax, employment, contracts and creditor matters.
- Apply within seven days under the current re-registration regulation.
- Verify public cancellation and preserve records/agent availability.
- Address any continuing proceedings or property.
Documents and evidence
- Cessation/board decision
- Foreign-investment authorisation status
- Regulatory/tax/employment clearances
- Cancellation application
- Registrar confirmation
Points requiring care
Particular care is needed to avoid letting investment approval expire without a coordinated cancellation filing, as well as terminating the agent before final notices and liabilities are managed.
Related Act provisions
Section 37 — Cancellation of Re-registration
Overview of the provision
This provision requires a re-registered foreign company to apply for cancellation when it stops business in the Maldives, its investment authorisation expires or is revoked, or it decides to dissolve. If it does not apply within seven days of the relevant event, the Registrar may decide to cancel the re-registration. The Registrar also has that power where a company classified as inactive under section 208 has remained recorded as inactive for one year. The detailed cancellation procedure is left to the regulations made under the Act.
Provision references
(a) A foreign company re-registered in the Maldives must apply to the Registrar for cancellation of its re-registration where— (1) the company ceases its business operations in the Maldives; (2) the foreign investment authorisation issued to the company is revoked or expires; or (3) the company decides to dissolve.
(b) The Registrar may determine to cancel the re-registration of a foreign company re-registered in the Maldives where— (1) the company fails to apply to the Registrar for cancellation of its re-registration within 7 days of the occurrence of any circumstance specified in subsection (a); or
(b) The Registrar may determine to cancel the re-registration of a foreign company re-registered in the Maldives where— (2) the company is determined to be an inactive company under section 208 of this Act and its name has remained in the register specified in section 231 of this Act as an inactive company for a period of one year.
(c) The procedures relating to the cancellation of the re-registration of foreign companies in the Maldives under this section shall be prescribed by regulations made under this Act.
Section 195 — Methods of Dissolving a Company
Overview of the provision
This provision identifies three routes to dissolution of a registered company: a company decision, a court order or a Registrar determination. The rest of the Chapter supplies the procedures and conditions for those different routes.
Provision references
A company registered under this Act may be dissolved— (a) by a determination of the company to dissolve;
A company registered under this Act may be dissolved— (b) by an order of the Court; or
A company registered under this Act may be dissolved— (c) by a determination of the Registrar.
Section 215 — Removal of Name from the Register
Overview of the provision
This provision requires removal from the Registrar's register and a public announcement when a company is dissolved or a foreign company's re-registration is cancelled. A dissolved company's name nevertheless remains in the dissolved-companies register under section 231(m) for two years from dissolution. For 12 months after removal, the name cannot be used for another company. Removal, historical retention and protection of the name therefore run on distinct rules and periods.
Provision references
(a) Upon the dissolution of a company in accordance with this Chapter, or the cancellation of the re-registration of a foreign company under this Act, the name of the company shall be removed from the register maintained by the Registrar and a public announcement shall be made.
(b) Notwithstanding subsection (a), the name of a dissolved company shall be retained in the register of dissolved companies under section 231(m) of this Act for a period of 2 years from the date of dissolution.
(c) The name of a company removed from the register under subsection (a) shall not be used as the name of another company for a period of 12 months from the date of its removal.
This page is a general research and practice aid. The translations used in this manual are unofficial. Verify the official Dhivehi legislation, amendments and current procedures before relying on any entry. Read our sources and verification guidance and contact a lawyer at Sulthan & Amhar for advice on your circumstances before relying on this material or taking action.