The Ministry of Economic Development, Transport and Trade has warned that foreign companies transferring ownership to Maldivian citizens will face strict verification of who receives the profits and who holds operational control.
New entry requirements under the Foreign Investment Act limit wholesale, retail and sales-agent services to domestic ownership. The rules took effect on 8 October, after a one-year grace period in which foreign firms could close, change their business scope or transfer full equity to Maldivians.
Many firms have submitted proposals, and the documents are under review, with no formal outcomes announced yet. Applicants must show genuine Maldivian ownership and participation. Officials will examine the nature of each transfer, the source of financing, the ultimate beneficial owners and whether foreign shareholders keep commercial control.
The aim is to stop restructurings that look like handovers on paper but leave control abroad. Firms that did not wind down in time will receive formal notices to stop unauthorised activities immediately.
