The amendment bill proposed by the government to the Political Parties Act, to cease the issuance of state funds to parties with less than 10,000 members, has been ratified by President Abdulla Yameen.
The bill was passed by the parliament on Monday with 49 votes in favour, and five against.
The bill, submitted by ruling party Progressive Party of Maldives (PPM) member Maavah MP Ahmed Azhan Fahmy, states that out of the political parties registered with Elections Commission, government funds will only be issued to parties that have more than 10,000 members.
The amendment will apply when the parliament passes the proposed state budget for 2016.
The bill also proposed to bring down the number of signatures required to register a political party, from 10,000 to 3,000.
Three months will be given after the amendments come into effect, for parties with less than 3,000 members to increase membership.
The bill also states that the government should provide a location not smaller than 1,000 sq ft to parties with more than 20,000 members, to hold political activities.