President Muizzu ratifies Company Act

President Dr. Mohamed Muizzu ratifies the Company Act on December 27, 2023. (Photo/President's Office)

President Dr. Mohamed Muizzu, on Wednesday, has ratified the Company Act (Act No. 07/2023), setting out the law on regulating companies.

The bill was passed by the parliament at the 32nd sitting of its third session this year held on December 5th.

The 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.

It also 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. 

To ensure transparency, the Act also 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. It also requires foreign companies to re-register and explains the process of re-registration.

The Act will come into force on January 1st next year.