President Dr Mohamed Muizzu ratified the 2nd Amendment to the Business Registration Act (Act No. 18/2014) on Tuesday. The amendment was passed by Parliament on Thursday, August 22, 2024, during the 32nd sitting of its second session.
The Bill introduces significant procedural changes for foreign entities looking to invest or conduct business in the Maldives, establishing specific requirements for these activities.
According to the Amendment, foreign entities are required to re-register as a company or partnership in the Maldives under the Companies Act and secure approval for their investments in line with the Foreign Investment Act.
Additionally, the Amendment allows foreign investors to engage in securities authorized under the Maldives Securities Act (Act No. 2/2006) without having to meet the aforementioned requirements. It further stipulates that if a foreign investor intends to acquire equity, the total shares purchased and owned by them in a single transaction shall not exceed 10% of the company's total shares.
Following its ratification, the amended Act has been published in the Government Gazette and has now come into effect.