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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The former Act was repealed, existing companies continued, and transition periods did not preserve inconsistent constitutional provisions indefinitely.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.
Company name selection and reservation
A company name must be available, accurate, non-misleading and compliant with the Act, Regulation and business-name rules.
Explanation and core rules
The name must reflect the true nature of the company and must not be misleading or prohibited. The correct company-type identifier must be used. Reservation procedure, duration, extension and fees are regulatory matters. Existing rights holders may object; the Registrar can direct a change. A name change does not alter the company's rights or obligations.
Step-by-step procedure
- Search company, business-name, trade mark and online usage records.
- Check restricted words, characters and status suffix.
- Reserve the name.
- Use the exact reserved name in formation documents.
- After a later name change, update contracts, licences, bank records and public materials.
Documents and evidence
- Name-search record
- Reservation confirmation
- Special resolution for change
- Registrar application
- Updated certificate and notification list
Points requiring care
Particular care is needed to avoid treating Registrar availability as trade mark clearance, as well as failing to update external licences and contracts after registration of a new name.
Related Act provisions
Section 66 — Company Name
Overview of the provision
This provision lets those incorporating a company choose an available name, provided it matches the company's true nature, is not misleading and is not prohibited by this Chapter or another law. Availability alone is therefore not enough: the name must also satisfy those substantive restrictions.
Provision references
A person or persons wishing to incorporate a company may choose any available name that is not inconsistent with the true nature of the company, is not misleading and is not prohibited by any other law or by this Chapter.
Section 67 — Symbols Indicating Company Status and Type
Overview of the provision
This provision requires the company name to show its type and legal status. A private company's ending is “Private Limited” or “Pvt Ltd”, with “PVT LTD” as the English abbreviation. A public company uses “Public Limited Company” or “Plc”, with “PLC” in English. A government company uses “Limited” or “Ltd”, with “LTD” in English. A local authority company uses “Local Authority Company Limited” or “LAC Ltd”, with “LAC LTD” in English. These endings form part of how the company's legal form is identified.
Provision references
The name of a company must contain the following indication of its type and legal status— (a) the name of every private company must end with the words “Private Limited” or the abbreviation “Pvt Ltd”, and in English the abbreviation shall be “PVT LTD”;
The name of a company must contain the following indication of its type and legal status— (b) the name of every public company must end with the words “Public Limited Company” or the abbreviation “Plc”, and in English the abbreviation shall be “PLC”;
The name of a company must contain the following indication of its type and legal status— (c) the name of every government company must end with the word “Limited” or the abbreviation “Ltd”, and in English the abbreviation shall be “LTD”; and
The name of a company must contain the following indication of its type and legal status— (d) the name of every local authority company must end with the words “Local Authority Company Limited” or the abbreviation “LAC Ltd”, and in English the abbreviation shall be “LAC LTD”.
Section 68 — Prohibited Names
Overview of the provision
This provision allows the Registrar to refuse a name that is identical or similar to another registered company or business, identical to an overseas institution or business, or similar to a reserved name. Refusal is also possible where the name suggests a government or state-authority connection or is prohibited by section 14 of the Business Registration Act. A dissolved company's name remains restricted for the 12 months beginning with dissolution under section 215(c), and regulations may prohibit other names. Where another law requires permission to use a proposed name, it cannot be registered until that permission is obtained.
Provision references
(a) The Registrar may refuse to register a company by a name that— (1) is identical or similar to the name of another registered company or business;
(a) The Registrar may refuse to register a company by a name that— (2) is identical to the name of a foreign institution or business registered outside the Maldives;
(a) The Registrar may refuse to register a company by a name that— (3) is similar to a name already reserved for another company or business;
(a) The Registrar may refuse to register a company by a name that— (4) is likely to give the impression of a connection with the Government or a particular State authority;
(a) The Registrar may refuse to register a company by a name that— (5) is prohibited under section 14 of the Business Registration Act;
(a) The Registrar may refuse to register a company by a name that— (6) is the name of a dissolved company, during the period of 12 months beginning with the date of dissolution under section 215(c) of this Act; or
(a) The Registrar may refuse to register a company by a name that— (7) is otherwise prohibited by regulations made under this Act.
(b) Where the use of a proposed name requires permission under another law, the name shall not be registered unless that permission has been obtained.
Section 69 — Reservation of Name
Overview of the provision
This provision enables an applicant to reserve a proposed company name through the regulatory process. It leaves the reservation period, extension procedure, and fees for reservation and extension to the regulations. The section creates the reservation mechanism without itself fixing those periods or amounts.
Provision references
A person applying to register a company may reserve a proposed name in accordance with regulations made under this Act. The regulations shall prescribe the period for which a name may be reserved, the procedure for extending the reservation and the fees payable for the reservation and any extension of it.
Section 70 — Change of Name
Overview of the provision
This provision requires three steps for a name change: a members' special resolution, submission of the new name to the Registrar and registration of that name. The proposed name must satisfy section 68's restrictions and be reserved under section 69. The special resolution must accompany the application. Once the Act and regulatory requirements are satisfied, the Registrar must register the change and update the section 231 register. The resulting certificate must include the usual section 24(b) information and state the new name, former name and date the change was registered. The special resolution begins the process; registration completes the required change.
Provision references
(a) A company may change its name only if— (1) the members pass a special resolution approving the change; (2) the new name is submitted to the Registrar for registration in accordance with this section; and (3) the Registrar registers the new name in the register.
(b) A new name proposed for the company must— (1) not be a prohibited name under section 68(a) or (b) of this Act; and (2) be reserved in accordance with section 69 of this Act.
(c) An application for registration of a change of name must be accompanied by the special resolution passed by the members.
(d) Where an application for a change of name is submitted in accordance with subsections (a) and (b), and the requirements of this Act and regulations made under it are satisfied, the Registrar shall change the name of the company, register the new name and update the register maintained under section 231 of this Act.
(e) Upon registration of the new name under subsection (d), the Registrar shall issue a certificate of registration which, in addition to the information required under section 24(b) of this Act, shall state— (1) the new name of the company; (2) the former name of the company; and (3) the date on which the change of name was registered.
Section 71 — Objection to a Name
Overview of the provision
This provision allows someone to object to a registered name because it is confusingly similar to their business name, suggesting a connection, or because it breaches the Act or regulations. The objection must include the prescribed information. The company must be allowed to respond. The Registrar may then direct a change after considering the timing of the competing names, how long the challenged name has been registered and business-starting expenditure, good faith, and actual or likely harm to the objector's business interests, name or reputation. A direction to change the name follows section 72. Anyone aggrieved by the decision under subsection (d) may appeal to a court with jurisdiction.
Provision references
(a) A person may object to a company name by application to the Registrar on either of the following grounds— (1) that the registered name of the company or business is so similar to the business name of the applicant that its use is likely to mislead the public into believing that there is a connection between them; or (2) that the name contravenes any provision of this Act or regulations made under it.
(b) An objection under subsection (a) must be submitted to the Registrar together with the information prescribed by regulations made under this Act.
(c) Upon receipt of an objection under subsection (a), the Registrar shall give the company concerned an opportunity to respond to the grounds of the objection.
(d) After considering the objection and the information provided by the company under subsection (c), the Registrar may direct the company to change its name, having regard to— (1) the period between the registration or commencement of use of the objector’s name and the registration of the name to which the objection relates; (2) the period for which the name to which the objection relates has been registered and any expenses incurred in commencing business activities under that name; (3) whether the name to which the objection relates was registered or is being used in good faith; and (4) whether the business interests, name or reputation of the objector have been, or are likely to be, adversely affected.
(e) Where the Registrar directs a company to change its name following an objection, section 72 of this Act applies.
(f) A person aggrieved by a decision of the Registrar under subsection (d) may appeal against that decision to a court of competent jurisdiction.
Section 72 — Registrar’s Direction to Change Name
Overview of the provision
This provision empowers the Registrar to require a name change where the name falls within section 68(a)'s prohibited categories or a decision under section 71(d) requires it. The company must complete the section 70 change and registration within 30 days of receiving the notice, or within an extended period not exceeding 60 days if an extension is requested and granted. Failure to comply and make the required submission in time is an offence by both the company and every director, dealt with under Chapter Fifteen. The Registrar may also replace the name with the company's registration number or a name reflecting it, through the prescribed regulatory procedure.
Provision references
(a) The Registrar may direct a company to change its name where— (1) the registered name of the company, for any reason, falls within a category specified in section 68(a) of this Act; or (2) the Registrar determines under section 71(d) of this Act that the company is required to change its name.
(b) Where the Registrar directs a company to change its name under subsection (a), the company shall comply with the direction and change and register its name in accordance with section 70 of this Act within 30 days after receipt of the notice or, where an extension is requested and granted, within a period not exceeding 60 days.
(c) Where a company fails to comply with the direction and make the required submission to the Registrar within the period specified in subsection (b), an offence is committed by— (1) the company; and (2) every director of the company. Action shall be taken against such persons in accordance with Chapter Fifteen of this Act.
(d) Where a company fails to comply with the direction and make the required submission to the Registrar within the period specified in subsection (b), the Registrar may change the name of the company to its registration number or to another name reflecting its registration number, in the manner prescribed by regulations made under this Act.
Section 73 — Effect of Change of Name
Overview of the provision
This provision keeps the company's legal position intact after a name change: its status, debts, liabilities and proceedings are unaffected. Proceedings started or pending against it under the old name may continue under the new one. A change of label therefore does not remove the company's existing legal responsibilities.
Provision references
(a) A change of a company’s name does not affect its legal status, debts or other liabilities, or any legal proceedings by or against the company.
(b) Any legal proceedings commenced or pending against the company under its former name may be continued against the company under its new name.
Section 74 — Formulation of Regulations Regarding Names
Overview of the provision
This provision leaves the detailed naming rules to regulations, including the criteria used to decide whether one name is identical or similar to another company's or business's name. Those regulatory criteria are therefore part of the naming analysis, alongside the restrictions in the Act.
Provision references
The rules relating to company names and the criteria for determining whether a name is identical or similar to the name of another company or business shall be prescribed by regulations made under this Act.
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.