This is a summary of the company registration procedure in the Maldives, as provided under the The Company Act (Law Number 10/96)

v  A company must have a name approved by the Registrar of Companies

v  A Company should submit the company registration form with the following details;

Ø  The approved name of the company

Ø  The proposed address and contact details

Ø  The authorized capital of the company

Ø  The main objectives, and the names and contact details of all the shareholders investing in the company

v  The Company should also submit Memorandum of Association, which must state;

Ø  The company name

Ø  State whether it is a private company or a public company

Ø  The registered office of the company

Ø  The objectives of the company

Ø  State that the liabilities of the members are limited

Ø  The authorized capital of the company and the manner in which it is to be procured

v  The company should also submit the Articles of Association, which must prescribe how the company shall be managed. (a model Memorandum of Association and Articles of Association is provided by the Ministry of Economic Development)

v  If the company is to be a private company, the said document must state ;

Ø  The company cannot sell shares to the public

Ø  That the shares of the company may only be transferred to a party approved by the Board of Directors in accordance with the articles

Ø  The number of shareholders of the company is limited to fifty.

A private limited liability company:

Ø  Authorized capital must not be less than MRF 2,000/-

Ø  Articles of association must state that the shares may only be transferred from a member to another person in accordance with the articles of association and the memorandum of association and articles of association.

Ø  Membership is limited to a minimum of 2 and a maximum of fifty (50).

Ø  Sales of shares to the public is prohibited.

Ø  Annual fee for a public company is Rmf10,000 while for a private company is Rmf2000

A public company:

Ø  Membership must exceed ten or above.

Ø  Minimum share capital is MRF 1,000,000 (One Million Maldivian Rufiya)

Ø  The persons forming the company must agree to buy shares of at least MRF 1,000,000/- in value and pay the said money to the company and submit to the Registrar of Companies evidence of the payment.

Ø  Annual fee for a public company is Rmf10,000

v  Registration fee is between Rmf1000-4000 (depending on the authorized share capital)

v  Contents of the Memorandum Association and Articles of Association must not contravene the Islamic principles or the provisions of the Company Law.

v  Upon registration the Registrar issues a certificate of incorporation.