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Maldives, formally the Republic of Maldives, is an archipelagic republic in Southern Asia's Indian subcontinent, located in the Indian Ocean. It's roughly 750 kilometers (470 miles; 400 nautical miles) from the Asian continent's mainland, southwest of Sri Lanka and India. The 26-atoll chain extends from Ihavandhippolhu Atoll in the north to Addu Atoll in the south (across the Equator).
Maldives is one of the world's most geographically dispersed sovereign states, with a territory spanning roughly 90,000 square kilometers (35,000 sq mi) including the sea, and the land area of all the islands comprises 298 square kilometers (115 sq mi). It is also one of the smallest Muslim-majority countries by land area, and the second least populous country in Asia, with around 557,751 inhabitants. Malé is the capital and most populous city, historically known as "King's Island" because of its central position, where ancient royal dynasties reigned.
The Maldivian Archipelago is situated on the Chagos–Laccadive Ridge, a huge undersea mountain range in the Indian Ocean that, together with the Chagos Archipelago and Lakshadweep, comprises a terrestrial ecoregion. It is the world's lowest-lying nation, with an average ground-level height of 1.5 meters (4 ft 11 in) above sea level and a maximum natural peak of just 2.4 meters.
The Maldivian Archipelago was cemented as a sultanate in the 12th century, maintaining strong trade and cultural relations with Asia and Africa. The area fell under the expanding influence of European colonial powers beginning in the mid-16th century, with the Maldives becoming a British protectorate in 1887. Independence from the United Kingdom was granted in 1965, and a presidential republic with an elected People's Majlis was founded in 1968. In the decades afterward, there has been political instability, democratic reform movements, and environmental difficulties brought by climate change.
The Maldives joined the South Asian Association for Regional Cooperation as a founding member (SAARC). It also belongs to the UN, the Commonwealth of Nations, the Organization of Islamic Cooperation, and the Non-Aligned Movement. The Maldives' economy is classified as upper-middle-income by the World Bank. Fishing has long been the leading economic activity, and it continues by far the biggest sector, followed by the rapidly expanding tourist business. The Maldives ranks "high" on the Human Development Index, having a much greater per capita income than other SAARC countries.
The Maldives was a member of the Commonwealth of States from July 1982 until its withdrawal in October 2016 in response to complaints by other nations of human rights violations and failing democracy. The Maldives rejoined the Commonwealth on February 1, 2020, after demonstrating working democratic systems and public backing.
After a year of continuous employment, employees are entitled to 30 days of paid leave. Employers are required to pay employees any earnings earned during their absence no later than the final working day prior to the leave.
Prior to dismissal, the employer must pay out any accumulated but unused vacation time.
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The Maldives also celebrates other variable festivals and public holidays as prescribed by the Government every year.
Each year, employees are given 30 days of paid sick leave. An employee must present a medical certificate if he or she is away from work for more than two days due to illness. Employees are also entitled to ten days of paid leave to care for a sick relative.
Female employees are entitled to 60 days of paid maternity leave, which must begin at least 30 days prior to the expected due date. If there are issues during pregnancy or childbirth, female employees might get up to an extra 28 days off. The company has exclusive choice over whether or not to pay the employee's wage throughout this prolonged vacation time. Female employees are provided two 30-minute paid breaks per day after returning to work after maternity leave to care for the kid until the kid is one year old.
After the birth of a child, male employees are entitled to three days of paid leave. In addition, all employees are provided five days of paid leave for the circumcision of their child. Employees can take up to a year off following the birth of a child, but this time off is unpaid. The leave might begin after the mother's maternity leave has ended. Finally, employees are entitled to ten days of paid leave to attend to family obligations.
Other than the already mentioned terms for maternity and paternity leaves in Maldives, there are no other provisions regarding parental leave in the law.
Employment contracts in the Maldives can be canceled by either the employer or the employee at the conclusion of the contract period (if the contract is for a specified time). Both the employer and the employee have the right to terminate an employment contract without giving notice during the probationary phase. Employers may fire an employee without cause if retaining the employee would be damaging to the employer or the workplace, or for wrongdoing such as theft, fraud, or breach of contract. Employers must provide notice prior to terminating an employment contract outside of the notice period and in the absence of misconduct.
The notice period for dismissing an employee, if applicable, is determined by the employee's length of service and ranges from two weeks to two months.
The probation period cannot exceed three months in the Maldives.
There are no provisions in the Maldives law regarding severance payment.
In the Maldives, the standard work week is 48 hours with one day off per week, which is typically Friday. Employees cannot be required to work more than six consecutive days without receiving 24 consecutive hours of rest.
On a regular day, overtime is compensated at 125 percent of the regular wage. If the overtime is worked on a Friday or a federal holiday, the rate is 150% of the regular wage.
For employees in the government sector, the minimum wage in the Maldives is currently 3,000 Maldivian rufiyaa per month.
The Maldives is well-known for its resorts, but there is currently no minimum wage for employees in that industry. Organizations and employees are fighting for a monthly minimum wage of 600 Maldivian rufiyaa.
The Maldives features a health-care system that is open to all citizens.
There are presently 11 public holidays in the Maldives, and workers should be able to take those days off with compensation. Employees should be entitled to 30 days of paid annual leave after one year of service with your business.
Female workers may take up to 60 days of paid maternity leave if they obtain a medical certificate from a certified medical practitioner on the anticipated due date. The employee will not be able to take the leave until 30 days before the expected due date. If there is a problem or sickness after the delivery, the employee is entitled to an extra 28 days of leave. This additional leave needs a document from a qualified medical practitioner outlining the mother's or baby's health issues.
A tax resident in the Maldives must pay income tax on all of his or her global earnings. A non-resident is required to pay income tax on income earned in the Maldives.
For a taxable income not exceeding MVR 500,000, the tax imposed is 0.
For a taxable income of more than MVR 500,000, the tax rate is set at 15 percent.
A tax resident in the Maldives must pay income tax on all of his or her global earnings. A non-resident and a temporary resident are both taxed on income earned in the Maldives.
For a taxable income not exceeding MVR 720,000, the tax imposed is 0.
For a taxable income more than MVR 720,000 but not exceeding MVR 1,200,000, the tax rate is 5.5 percent.
For a taxable income of more than MVR 1,200,000 but not exceeding MVR 1,800,000, the tax rate is 8 percent.
For a taxable income of more than MVR 1,800,000 but not exceeding MVR 2,400,000, the tax rate is 12 percent.
For a taxable income of more than 2,400,000, the tax rate is 15 percent.
In the Maldives, the provision of goods and services is subject to a 6% GST on the value of the products and services. Tourism products and services are subject to a 12% tax on the value of the items and services.
The receiver of goods and services provided by a registered person is entitled to an input tax credit for the GST paid on the acquisition of the goods and services. The input tax obligation may be adjusted with the output tax liability, and the net amount is due to the Maldives Inland Revenue Authority as GST (MIRA).
The Maldives visa policy is centered on the criteria for tourists who want to visa Maldives. The Maldives visa policy stipulates that you must have a Maldives visa in order to enter, reside in, or exit the country.
Certain conditions must be completed by a tourist who want to apply for a Maldives visa in order for the visa to be filed, processed, and accepted. A visa application will be deemed complete and granted by authorities if the following information is provided: the nation from which the passport was issued, the amount of time the tourist intends to remain in Libya, and the purpose for the visit.
The Maldives developed the Maldives Visa, which is accessible to nationals of all nations worldwide. This visa permits tourists to visit the Maldives for the purpose of tourism and allows them to stay in the country for up to 90 days per entry.
Travelers may simply apply for a visa online and obtain it quickly. Once issued, this visa must be shown to immigration officers when a visitor arrives at the Maldives' port of entry.
Agreements have been struck between the Maldives and several nations, making some countries eligible for visa exemption and therefore not necessary to seek a visa before coming to the country. The Maldives joined the Schengen Agreement for passport-free travel with 25 other European nations, who have a common Schengen Area visa policy that is similar to the Maldives Visa policy. This implies that if a tourist has a passport from one of the Schengen nations, he or she does not need a visa to enter any of the Schengen countries.
The Maldives Visa policy presently allows for the use of one visa. Travelers who wish to tour the Maldives but do not have a passport that qualifies for visa exemption under the Maldives Visa policy must acquire authorization from the Maldives government before arriving and attempting to cross the border.
Name, address, and contact information of the employee
Employee’s date of birth and nationality
Employee’s identity number or passport number
Address of employer
Emergency contact information
Date of commencement and duration of the contract (if applicable)
Salary and payment details
Employment contracts in the Maldives might be for a set period of time or for an indeterminate period of time. The maximum period of a fixed-term contract is two years. If a fixed-term contract is renewed for a period longer than two years, it is considered an indefinite-term contract.
Do you know how to set up a subsidiary in the Maldives? If not, now is an excellent moment to employ and collaborate with a professional, such as an accountant, lawyer, or consultant. This specialist can assist you in locating a site that is welcoming to international incorporation. Because various places may have varied Maldives subsidiary regulations, it is important to choose a city or region with rules that make it simple for you to create a subsidiary.
Next, consider what form of subsidiary is best for your company and activity objectives. The Maldives subsidiary formation procedure varies depending on your company. Most experts would advise you to form a limited liability company if you want to operate as a resident firm in the Maldives (LLC). An LLC will provide you the maximum operational independence and flexibility, and it will safeguard your parent business from the liabilities of the subsidiary.
To establish your Maldives subsidiary as an LLC, follow these steps:
1. Fill up and submit an application, along with any required documentation.
2. Provide the necessary contact information.
3. Once authorized, you must attend the Ministry.
4. Obtain a payment slip and pay the business registration and yearly fees.
5. Get a payment receipt.
6. Receive your Registration Certificate, Instruction Letter, and an endorsed copy of the Articles of Association and Memorandum of Association.
7. Look for a certificate to demonstrate complete verification.
The subsidiary laws of the Maldives change depending on the kind of business. LLCs must have a registered office in the Maldives, as well as at least two directors who administer the firm and five directors who serve on the Board of Directors. You must also designate a resident director who will live in the Maldives and assist you in running your business.
Every business requires a Memorandum and Articles of Association. Once you've filed these paperwork and established your subsidiary, you'll need to satisfy yearly filing and compliance obligations. LLCs are required to provide an annual report for the firm as well as submit yearly financial statements.