President Solih ratifies first amendment to Sole Proprietorship Act

The first amendment to the Sole Proprietorship Act has been ratified.

President Ibrahim Mohamed Solih ratified the amendment on Monday, following which it has been publicized in the government gazette.

The ratified act comes into immediate effect following ratification.

It was passed by the People’s Majlis during its 44th sitting of the third session, on November 29.

With the ratification, it increases the validity period of sole proprietorships from five to 10 years and extends the renewal period of registrations from 90 days to one year.

Stipulating that the registration of sole proprietorships will be revoked if the Registrar of Companies finds a business directly or indirectly operating to serve the interests of a foreigner, the amendment also highlights that regulations relating to it must be compiled and published in the government gazette within three months from the ratification date.