Expand your business into Maldives, even without a Maldivian entity
The archipelagic state of Maldives is one of the smallest countries in Asia, but has a healthy economy largely centered on tourism, fishing, and logistics, and the nation still attracts significant foreign investment in spite of its size.
However, expanding a business in Maldives can be a difficult process. The country still has lengthy bureaucratic procedures, cultural differences, and unique regulations that can cause delays, so expansion projects can often take weeks or months to initiate.
At New Horizons, we offer an extensive set of outsourcing services to help organizations expand into Maldives quickly and effectively. Our professional employer organization (PEO), payroll, and employ of record (EOR) services give you the ability to outsource all the complex administration and legal compliance work so you can focus your efforts on a rapid and successful expansion.
We have an in-house recruitment team, so we can source, recruit, and onboard your new staff members. Additionally, you can use our Maldivian subsidiary to act as employer of record for your new hires, so you don’t even need to register an entity in the country but will have total autonomy over your employees.
Our outsourcing solutions could save you thousands in expansion costs and can help you expand in a compliant, flexible, and scalable way.
How New Horizons outsourcing can help you expand into Maldives
New Horizons enables your business to expand its operations into Maldives – without setting up a legal subsidiary.
Hiring in Maldives - Employment Law Overview
Maldives employment contracts
Employment contracts can technically be verbal or written in the Maldives, but we strongly recommend that you always use written employment contracts for your hires. These formal contracts should include details such as salary/wage, working hours and duties, and any other relevant information. They should be written in the local language of Dhivehi and use the Maldivian rufiyaa currency.
Working hours in Maldives
The typical working week in the Maldives is between 40 and 48 hours, spread across five days.
National holidays in Maldives
There are several annual public holidays in the Maldives, and most employees receive the following days off work each year:
- Independence Day
- Victory Day
- The Prophet’s Birthday
- New Year’s Day
- May Day
- Republic Day
- Maldives National Day
Vacation in Maldives
Employees in the Maldives are generally entitled to 30 days of paid vacation leave each year.
Sick leave in Maldives
After two continuous days of absence through sickness, employees in the Maldives are entitled to sick leave compensation.
Maternity and paternity leave in Maldives
Female employees in the Maldives are entitled to 60 days of paid maternity leave.
Employee severance and terminations in Maldives
Employers in the Maldives must provide notice of termination in most cases. The mandatory minimum notice period varies depending on the employee’s length of service, but is generally between two weeks and two months. Severance payments are less common, but are often expected for senior-level employees.
Tax laws in Maldives
The personal income tax in the Maldives is progressive, ranging from 0% to 15% of income depending on income level.
The corporate tax rate in the Maldives is either 0% (for profits under 500,000 MVR per year) or 15% (for companies earning over 500,000 MVR per year). Some other companies, such as banks, may have different tax rates.
Health insurance in Maldives
Healthcare in the Maldives is state funded in many cases, but private medical insurance is still commonly used and may be expected by employees.
Maldives compensations & benefits
Compensation laws in Maldives
The current (2020) minimum wage in the Maldives is set at 3,100 rufiyaas per month, but this is potentially set to increase in 2021.
Benefit management in Maldives
Setting up your Maldivian benefits system as a foreign employer can be difficult. The laws are complicated, bureaucratic procedures can be slow, and legislation can change regularly, all of which can make it a very time-consuming process.
Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At New Horizons, our Maldives employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.
Why choose New Horizons' services for your expansion into Maldives?
New Horizons’ Maldives PEO, employer of record, and payroll services can provide your organization with everything you need to start trading in Maldives. Our experts could help you commence operations in Maldives in as little as 48 hours, and can potentially save you over 80% in expansion costs, even if you don’t yet have an entity in the country.
New Horizons can manage your company’s payroll, benefits, and expenses in Maldives. Additionally, we can oversee HR duties, as well as employment and tax compliance. And as the only global PEO with an in-house recruitment team, New Horizons will source, hire, and onboard your local workforce.
Contact us today to discover how our Maldives-specific services can support your expansion.