How to register a company in Maldives: A guide for employers

Maldives: the strategic gateway to south Asia’s thriving markets

With investor-friendly policies and streamlined processes backed by the Ministry of Economic Development, setting up a business here is refreshingly straightforward. A thriving economy, simplified registration, and unmatched growth potential make the Maldives the ideal spot to launch and scale your operations. It’s the perfect blend of simplicity and opportunity, helping you succeed in one of South Asia’s most dynamic markets.

The business benefits of registering your company in the Maldives 

The Maldives is fast becoming a top choice for business expansion, thanks to its investor-friendly policies and straightforward registration processes. For HR and business leaders, this means less time spent on compliance hurdles and payroll complexities, and more time focused on strategic growth and operational excellence.

Here’s why the Maldives is an excellent choice for your business expansion:

• investor-friendly tax policies that boost profits.
• quick, hassle-free company registration process.
• transparent compliance standards for smooth operations.
• low capital requirements, perfect for startups.
• strategic location connecting South Asia and beyond.
• diverse growth opportunities in tourism and trade.

The Maldives offers a high-growth, low-barrier environment for companies looking to expand into South Asia.

Next, we’ll explore the available options—standard company registration, investment permits, and Employer of Record (EOR)—to help you determine the best approach for your business needs.

What is the difference between E-residency and standard company registration and EOR?

The Maldives offers three main options for establishing a business, each designed to meet different operational goals:

Aspect	Investment Permit	Standard Registration	Employer of Record (EOR)
Purpose	Authorizes foreign investment in specific sectors.	Establishes a legal entity with full operational control.	Facilitates hiring without entity setup; EOR manages compliance and employment.
Control	Limited to the terms of the investment agreement.	Full control over business operations and finances.	Operational oversight over employees; EOR handles administrative and legal responsibilities.
Compliance	Requires adherence to investment laws and sector-specific regulations.	Full responsibility for compliance with all local laws and regulations.	EOR ensures compliance with labor laws, taxes, and reporting.
Setup Time	Moderate, depending on the approval process.	Longer, due to documentation and legal procedures.	Quick, enabling immediate onboarding and operations.
Cost	Involves fees for investment approval and regulatory compliance.	Includes entity setup costs, legal fees, and operational expenses.	Service fees to the EOR, often more cost-effective for workforce needs.
Scalability	Suitable for large-scale, project-specific investments.	Ideal for businesses planning substantial, long-term operations.	Highly flexible for scaling teams without the need for an entity.

While investment permits offer a pathway for project-specific operations and standard registration grants full control, an Employer of Record (EOR) simplifies hiring and compliance. It’s a faster, more cost-efficient way to establish a workforce in the Maldives without the need for a legal entity.

Next, let’s explore how an EOR can simplify onboarding and operations in the Maldives.

How EOR simplifies business registration in the Maldives

Here’s how an EOR can help businesses entering the Maldives:

1. Skip the lengthy process of entity registration. An EOR acts as your official employer, letting you focus on growing your business right away.
2. Offload administrative responsibilities such as payroll, taxes, and filings, as the EOR handles these tasks seamlessly for your team.
3. Ensure compliance with the Maldives’ labor laws and tax regulations through the EOR’s expertise, reducing risks and avoiding legal complications.
4. Save significantly by eliminating the costs and complexity associated with setting up a legal entity, allowing you to allocate resources toward scaling operations.
5. Adapt to changing market needs by scaling your workforce up or down without long-term commitments or infrastructure constraints.
6. Tap into the Maldives’ skilled labor market while bypassing the complexities of local hiring practices and geographic barriers.
7. Offer locally compliant, competitive benefits packages to attract top-tier talent, with the EOR managing all the associated administration.
8. Reduce legal and compliance risks while confidently expanding, thanks to the comprehensive support provided by the EOR.

With an EOR, entering the Maldives becomes a streamlined and efficient process, freeing you to focus on growing your business while leaving the administrative and regulatory challenges to the experts.

Now, let’s dive into the step-by-step process of registering a company in the Maldives to help you navigate the setup with confidence and ease.

Step-by-step guide to registering a company in the Maldives

Step 1: Get an investment permit (if needed)

For foreign investors entering specific industries, an investment permit is your first step.

How to apply:

• Submit your investment plan to the Ministry of Economic Development, detailing your project goals and financial expectations.
• Include all required documentation to showcase compliance and feasibility.
• Once approved, you’ll be ready to take the next steps.

Step 2: Choose the right structure and register your business

Establishing a local entity in Maldives often involves navigating complex procedures and lengthy timelines. But there’s an easier way—an Employer of Record (EOR).

An EOR like Multiplier simplifies your global expansion by acting as the legal employer for your team. They manage everything from recruitment and onboarding to payroll, tax compliance, and adherence to local labor laws. This allows you to skip the administrative burden and focus entirely on growing your business.

If you’re set on registering a local entity, choosing the right business structure is a critical first step. The structure you select determines your company’s legal responsibilities, tax obligations, and flexibility in daily operations.

Popular options include:

• Private Limited Company (LLC): A great choice for small and medium-sized enterprises looking for limited liability protection.
• Public Limited Company (PLC): Perfect for larger businesses that aim to raise funds from investors.
• Partnership: A shared ownership model where partners split profits and responsibilities.

How to register:

• File your application with the Ministry of Economic Development.
• Pay the required registration fee based on your chosen structure.

Step 3: Prepare your paperwork

Having the correct documents ready is essential to avoid delays.

You’ll need:

• Articles and Memorandum of Association outlining your business objectives.
• Identification and contact details for all shareholders and directors.
• Proof of a registered office address in the Maldives.

Step 4: Set up a local bank account

A corporate bank account is a must for managing payments, expenses, and tax obligations.

What banks typically require:

• Business registration certificate
• Identification for all authorized representatives
• Details about your business operations and proof of address

Setting up a local bank account in the Maldives can be a challenging process, but with Multiplier’s global payroll solution, you don’t have to worry about it. Multiplier enables you to:

• Process payroll seamlessly in multiple currencies.
• Ensure full compliance with Maldivian tax regulations.
• Avoid the complications and risks of managing international payroll systems.

With Multiplier, handling payroll and compliance becomes effortless, freeing you to focus on scaling your operations in the Maldives. It’s the smart, efficient way to establish and grow your presence in this dynamic market.

Step 5: Register for taxes and maintain compliance

Compliance with local tax regulations keeps your business running smoothly and shields you from all kinds of legal and operational risks.

What to register for:

• Goods and Services Tax (GST): Required once your business crosses the taxable income threshold.
• Payroll Taxes: Mandatory if you’re onboarding employees in the Maldives.

Ongoing compliance:

• Keep accurate financial records.
• Submit annual reports to the Ministry of Economic Development.

By following these steps, you’ll be ready to launch your business in the Maldives with confidence.

Now, let’s break down the actual costs involved in registering a business in the Maldives, so you can plan your investment with clarity and confidence.

The real cost of registering a business in the Maldives

If you’re considering setting up a business in the Maldives, understanding the associated costs is essential. Here’s a clear breakdown to help you plan effectively:

1. Registration costs

• Application fee: The Ministry of Economic Development charges approximately $300 for company registration.
• Capital deposit: Depending on the business type, a minimum capital requirement may apply, starting at $1,000.
• Legal address: A registered office is mandatory, with costs typically ranging from $200 to $500 annually.
• Professional services: Legal or consultancy fees for document preparation and submission can range from $500 to $1,500.

2. Annual maintenance costs

• Accounting services: Depending on your business activity, expect to pay $50–$200 per month for bookkeeping and reporting.
• Compliance filings: Submitting annual financial statements to the Ministry incurs fees starting at $100 per year.
• Taxes: Corporate tax varies by sector, with standard rates ranging from 5% to 15%. Businesses in certain industries may also be subject to Goods and Services Tax (GST).

3. Additional considerations

• Banking services: Setting up a local business account involves initial fees, often between $100 and $300, with additional monthly charges for account maintenance.
• Professional support: Hiring consultants or legal advisors to ensure compliance and smooth operations can add $1,000 or more to annual costs.

An Employer of Record (EOR) simplifies operations by managing payroll, compliance, and onboarding—without the need for entity setup. This eliminates many upfront and recurring expenses, offering a cost-effective, predictable fee structure.

Next, let’s compare the expenses of standard registration versus using an EOR in the Maldives.

Cost Comparison: Standard Registration vs. EOR

Here’s a side-by-side comparison of the costs involved in registering a company in the Maldives versus partnering with an Employer of Record (EOR):

While standard registration involves significant upfront and ongoing costs, an EOR offers a streamlined and cost-effective alternative. With predictable monthly fees that include compliance and administrative responsibilities, an EOR removes the financial and operational burden of entity setup.

Next, let’s explore how partnering with an EOR like Multiplier can help you expand your business into the Maldives with ease and efficiency.

Expand into the Maldives with Multiplier advantage

With Multiplier’s Employer of Record (EOR) solution, you can focus on business expansion while we handle the details—from local hiring to compliance.

Why Multiplier is your Maldives expansion partner

• Hire with ease, scale with confidence: Connect with the Maldives’ talented workforce effortlessly. Our local experts handle compliant contracts and onboarding, so you can focus on building your team without borders slowing you down.
• Payroll, simplified: Stay on top of payroll without breaking a sweat. Multiplier ensures taxes, contributions, and payments align with Maldivian laws, giving you real-time accuracy and peace of mind.
• Everything HR, all in one place: From onboarding to leave approvals and expenses, our platform gives you full visibility and control over your team’s operations—all in one simple dashboard.
• Compliance made stress-free: Navigate local labor laws and tax requirements with ease. Multiplier covers everything from payroll taxes to worker protections, so you can focus on growth.
• Benefits designed to attract the best: Offer benefits tailored to the Maldives’ market and stay ahead in the talent game. Multiplier handles all the admin so your team gets what they need—hassle-free.
• Support you can count on: Our team is here 24/5 to help you every step of the way. With world-class security and full GDPR compliance, your data and operations are always protected.

Multiplier is your ultimate partner for growth in the Maldives. From simplifying payroll to navigating local hiring and ensuring seamless team management, we provide the tools and expertise you need to succeed. With Multiplier, you’re not just expanding—you’re doing it smarter, faster, and with complete confidence.

Book a Demo today and experience how simple it can be to expand your business in the Maldives with Multiplier’s EOR services.