How to start a business in the Maldives?

Apart from being one of the world’s most popular travel destinations with azure waters, golden sand beaches and a myriad of exclusive offerings for travellers, the Maldives as a country has a booming economy fueled by tourism and exports. Hence, it is an ideal destination to start a business. If you are getting curious, here’s a guide on how to start a business in the Maldives.

Why start a business in the Maldives?

It has become an enticing destination for entrepreneurs looking to establish their businesses in a truly unique environment. There are several compelling reasons why starting a business in the Maldives can be a lucrative and rewarding venture, Outlined below are just a few of them! 

A rapidly expanding and growing tourism sector

The number of Maldives island hotels keeps continuously growing with the latest number standing around 130. Also, premier resort establishments like Velifushi Maldives by Cinnamon and others of this nature keep increasing the demand for luxury travel which further increases the influx of travellers to Maldives. This increases the income the nation generates along with business opportunities. Though the nation experienced a slight decrease in the tourism sector during covid, the nation is rapidly recovering and is generating more revenue through tourism than before. 

A favourable economy

Maldives has a very liberal and open economy and has comparatively fewer restrictions on new entrants to the markets than other nations. Maldives also has low minimum capital requirements and a low corporate tax rate.

Strategic location and skilled workforce

Maldive’s location in the Indian Ocean is also a contributing factor to its economic stability, the nation sits right in the middle of the trade route that connects Asia with the rest of the world. The nation also has a growing population of skilled workforce that is accelerating the nation forward.

How to start a business in the Maldives?

Now that you know the why, the next important question you should ask is how you could start a business in the Maldives. The answer to this question can be broken down into five segments. First, you should register your company name - you can check your name's availability on the Ministry of economic development’s (MED) website. Next, you need to incorporate your company, this could be done by submitting the application for incorporation to MED. you can download the application from the website as well.

The third step is to register your company at the Registrar of Companies. Next, you need to create and register your company seal. The fifth and final step is to obtain the necessary licenses and permits. 

The various business opportunities in the Maldives

There are a number of ways in which you can start and invest in businesses in the Maldives. Some of the ways are,

Hotels and resorts

If you have the capital and if you have experience in managing hotels, this shouldn't be a difficult task to pull off. The government sector especially the Ministry of Tourism in the Maldives is very supportive of entrepreneurs who are planning to start hotels in the islands and you can always reach out to them if you need to know anything about the procedures.

Cafes and restaurants

The same tips for hotels and resorts apply for Cafes and Restaurants as well but however, you need to be mindful of the location that you select. The most viable option is to establish a cafe or a restaurant on the populated islands where the competition will the high.

Diving centres and watersports operators

Maldives being an archipelago, offers a wide array of water-based recreational activities and if you are a provider of such activities you could be a profitable business. 

Other avenues of business 

Maldive’s economy is rapidly diversifying and the nation is focusing on several areas of development namely, renewable energy, education and training, Information technology and agriculture. You can explore your options in these avenues as well if you are planning to establish a business in the paradise islands of the Maldives.