Maldives President Dr. Mohamed Muizzu on Wednesday, December 27, has ratified the Company Act (Act No. 7/2023).
The bill was passed by the parliament on Tuesday, December 5, 2023, at the 32nd sitting of its third session this year.
The Act establishes the terms for the incorporation, registration, operation, and dissolution of companies in the Maldives, along with other rules and procedures applicable to companies in the Maldives.
Besides this, the Act stipulates the rules and procedures for establishing, registering, and managing a company as a business entity. It further specifies general, convenient, and favorable terms and conditions for the registration, incorporation, and liquidation of a company.
The Act also attempts to improve transparency by mandating the rules on the compilation, maintenance, and publication of a register of companies.
Private, public and government companies, and local authority companies can be registered under this Act. Moreover, the Act requires foreign companies to be re-registered and explains the process of said re-registration.
The Company Act will come to full effect on January 1, 2024.