President ratifies the Company Act

President Dr. Mohamed Muizzu has ratified the Company Act.

The President ratified the Company Act on 27 December 2023.

The bill was passed by People's Majlis on Tuesday, 5 December 2023, at the 32nd sitting of its third session this year.

The Company Act establishes the terms for the incorporation, registration, operation, and dissolution of companies in the Maldives, along with other rules and procedures applicable to companies in the country.

Additionally, the Act stipulates the rules and procedures for establishing, registering, and managing a company as a business entity. It also specifies general, convenient, and favorable terms and conditions for the registration, incorporation, and liquidation of a company.

Furthermore, to ensure transparency, it mandates the rules on the compilation, maintenance, and publication of a register of companies.

Private companies, public companies, government companies, and local authority companies can be established under this act.

The Act requires that foreign companies must be re-registered and explains the process of re-registration.

This Act shall come into effect on January 1, 2024.