MALDIVES Law and Practice Contributed by: Hassan Maaz Shareef, Aminath Amathulla, Aishath Shifala, Mohamed Azmee, Nazahath Ahmed, Maaisha Mohamed Musthafa, Aifa Shareef and Noorul Hudha Ahmed, Premier Chambers LLP
2.4 Right to Appeal Under the FI Act, investors have the right to challenge decisions made by the Ministry or any other govern - ment authority concerning their foreign investment. The Ministry has to establish a review committee to consider these matters. If the investor’s complaint is not resolved through a decision of the Ministry, the investor has the right to refer the matter to the relevant court or pursue the dispute resolution process outlined in the investment agreement. 3. Corporate Vehicles 3.1 Most Common Forms of Legal Entity The most common forms of corporate vehicles in the Maldives are companies and partnerships. Another form of vehicle used for conducting business is a co- operative society. Any person who wishes to conduct business in the Maldives must register their business under one of these corporate structures. Unlike other forms of corporate structure, which can be utilised to conduct any type of business, co-operative societies can only be formed to meet common economic and social needs shared by a group of individuals within a society. Companies registered in the Maldives, including re- registered foreign entities, are regulated by the Com - panies Act (Law 7/2023). Partnerships are regulated by the Partnership Act of the Maldives (Law 13/2011). There are regulations under the relevant Acts that also govern matters relating to each corporate entity. There is a distinct law relating to co-operative societies as well. Companies The following types of companies can be incorporated in the Maldives. Private companies These are companies where shares are privately held and the sale of shares to the public is prohibited. The minimum number of shareholders in a private com - pany is one and the maximum number is 50. There is no minimum share capital requirement.
Public companies The general public has the right to subscribe to shares, debentures or bonds in publicly traded com - panies. The number of shareholders in a public com - pany is unlimited. There is also no minimum share capital requirement. However, if the company is going to be listed on the Stock Exchange before listing, they must have an issued and paid-up capital of at least MVR10 million. State-owned companies State-owned companies are incorporated under a Presidential Decree or by legislation and all shares are owned by the government. Local authority companies Local authority companies are incorporated by local councils to conduct business activities that benefit citizens under the secretariat’s regulatory remit. Foreign investment companies Any company where one or more shares are held by a foreign individual, a foreign company or a partner - ship is considered a foreign investment company in the Maldives. A foreign investment company can be either private or public. Foreign investment compa - nies are subject to the FI Act. Specific designated sectors are open to foreign investment companies to conduct business with a 100% foreign shareholding, while restrictions, such as foreign shareholding per - centages, apply in other areas. Re-registered companies Foreign-registered companies, including foreign- registered co-operations, charities, foundations and other types of entities, can re-register in the Maldives and conduct business operations. Like foreign invest - ment companies incorporated in the Maldives, re-reg - istered companies are subject to the same restrictions regarding the areas in which they can operate. Every re-registered company must appoint an agent in the Maldives who is accountable to the Registrar of Com - panies for fulfilling all obligations under the Compa - nies Act. The agent will be personally responsible for all actions taken against the re-registered entity under the Companies Act.
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