How to Register a a Sole Proprietorship (ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍) in the Maldives

Working as an independent contractor in the Maldives is an attractive option for its simplicity and low overhead. For many small entrepreneurs and freelancers, establishing a large company is unnecessary and costly. A ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ (sole proprietorship) offers a straightforward path to doing business, with minimal formalities and lower setup costs compared to corporate structures.

However, there are still administrative requirements to consider. Business name approvals, government registration, and tax compliance all involve specific steps. Challenges may include keeping up with regulatory obligations, renewing registrations on time, and managing the risks of unlimited personal liability.

The main advantage is flexibility—sole proprietors retain full control, avoid complex corporate governance, and benefit from simplified accounting requirements.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ (sole proprietorship) in the Maldives?

In the Maldives, a sole proprietorship is regulated under the Sole Proprietorships Act. While it is widely referred to in English as a “sole proprietorship,” the Dhivehi term is ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍. It may also loosely be called a sole trader, self-employed business, or independent contractor. All of these describe a model where a single person conducts business without forming a separate legal company.

How does a ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ (sole proprietorship) work in the Maldives?

ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ vs. other business structures in the Maldives

While a ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ (sole proprietorship) is the simplest way to operate a business in the Maldives, many entrepreneurs also consider setting up a limited liability company. This option provides liability protection and is better suited to businesses that expect growth or outside investment. The table below compares the two structures.

Step-by-step guide: How to register a ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ in the Maldives

Step 1: Check your eligibility

To register a ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ (sole proprietorship), you must be a Maldivian citizen aged 18 or older. Each citizen can only register one sole proprietorship in their name at a time.

Foreign nationals, including those living in the Maldives, are not permitted to register a sole proprietorship. Instead, foreigners who wish to operate a business must establish a limited liability company or seek approval for an investment project through the Ministry of Economic Development & Trade or the Maldives Investment Board.

Step 2: Choose your business name

Your business name must be unique and must not conflict with existing registrations. You can search existing names via the Business Registry on the Maldives Business Portal. Once you find an available name, you can reserve it (often for 14 days).

Step 3: Gather required documents

You will need:

• Copy of your national identity card (ID)
• Completed Business Name Reservation / Name Search form (if required)
• Filled Business Registration Application Form, ticking the “Sole Proprietorship” box
• Any other identity or proof-of-address documents as required by the Ministry

Step 4: Register with the Ministry of Economic Development & Trade

You can register online through OneGov or submit in person at the Ministry’s office in Malé. Log in with your OneGov account, access the Business Registrations → Sole Proprietorship section, complete the application, and attach your documents.

Step 5: Pay registration fees

The registration fee is MVR 500 for a five-year registration. Payment is submitted with the application. Once approved, you will receive a certificate of registration, a registration letter, and a payment receipt.

Step 6: Complete post-registration obligations

If your average monthly gross revenue exceeds MVR 40,000, you must register as a taxpayer with the Maldives Inland Revenue Authority (MIRA) within 60 days by submitting the MIRA101 form. You are then required to comply with tax filing schedules, maintain accurate records of income and expenses, and issue invoices that meet MIRA’s standards. These must include sequential numbering, client and business details, and—if you are registered for tax—clear disclosure of the applicable Goods and Services Tax (GST), which is the Maldivian equivalent of VAT. All invoices must be retained for at least five years for inspection during audits. In addition, your business registration is valid for five years and must be renewed with the Ministry of Economic Development & Trade before it expires to remain in good standing.

Financial and tax obligations for sole proprietors in the Maldives

You are responsible for:

• Income tax: Sole proprietors are taxed under the progressive personal income tax system, ranging from 0% to 15%. Filing is annual with the Maldives Inland Revenue Authority (MIRA).
• GST / T-GST: I The standard GST rate is 8% and applies to most goods and services supplied by registered businesses. Tourism businesses are subject to a separate Tourism Goods and Services Tax (T-GST), which is charged at 17% on goods and services in the tourism sector, such as accommodation, excursions, and diving. Registration is mandatory if your business exceeds the revenue threshold (MVR 1 million) set by MIRA. Returns are usually filed quarterly through the MIRA.
• Social security contributions: While there is no universal scheme for self-employed persons, if you hire employees, you must register them and make pension and social contributions under Maldivian law.
• Record-keeping: You must maintain proper records of invoices, receipts, and accounts. Documentation must be kept for audits and annual tax returns.
• Invoicing: Sole proprietors must issue valid invoices, including business and client details, date, description of goods or services, and applicable GST or T-GST. Invoices should be numbered sequentially and stored for your records.

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FAQs

What is the minimum capital required to start a ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ in the Maldives?
There is no minimum capital requirement.

Do ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍s need to register for GST / T-GST?
Yes, if you are in the tourism sector or exceed revenue thresholds for GST registration.

How much are the standard registration or renewal contributions?
The one-time registration fee for five years is MVR 500. Renewals occur every five years.

Can a ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ hire employees?
Yes, but you must comply with employment law, tax, and social security obligations.

How long does it take to register as a ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ in the Maldives?
Registration usually takes 1–2 business days.

Can foreign nationals register as ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ in the Maldives?
No, only Maldivian citizens are eligible.

Do ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍s need a separate business bank account?
Not legally required, but strongly recommended for clarity and credibility.

What happens if I stop working as a ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍?
You must deregister your business via the Ministry and file any final tax obligations with MIRA.

Are there any government incentives for new ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍s?
No general incentives are listed, though the Business Centre Corporation (BCC) promotes support for self-employed Maldivians.

Can I use Deel as a ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍ to get paid by international clients?
Yes. Deel supports international payments across multiple currencies with transparent fees.

Does Deel generate compliant invoices for ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍s?
Yes. Deel invoices meet local and international compliance standards.

Can Deel help me with taxes as a sole proprietor in the Maldives?
Yes. Deel provides downloadable tax reports and payment records to help you stay compliant.

Does Deel offer contracts for freelancers and ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍s?
Yes. Deel includes locally compliant contract templates for working with clients.

Can I access benefits through Deel as a ސୋଲ୍ ପ୍ରୋପ୍ରାଇଟର୍ଶିପ୍?
Yes. Deel offers optional health, retirement, and insurance benefits typically unavailable to sole proprietors.