Parliament of the Maldives has passed an amendment bill to the Sole Proprietorship Act to ban foreigners from operating businesses that are registered under the names of Maldivians. The Parliament passed the amendment bill proposed on behalf of the government with 53 votes in favour.
The amendment bill dictates that only Maldivians above 18 years of age are allowed to own businesses registered in the country. It also states that if the Registrar of Companies found that a registered business is owned by a foreigner that business would lose its license. As such, a business would lose its license if the Registrar of Companies obtain enough evidence to prove that the revenue is being received by a foreigner.
The purpose of the amendment bill is to solve the challenges faced by private companies and to allow means to extend licenses, as well as to make it easier for business owners to transfer their companies to other individuals.
The amendment bill also aims to provide more opportunities for Maldivians and small and medium enterprises (SMEs) by banning foreign parties that are benefiting from establishing businesses in the country after registering them under the names of locals.