Govt to cancel permits of sole proprietorships run to benefit foreigners
The regulation also provides for penalising traders for illegally selling goods on the pavement.
By
Aishath Fareeha Abdulla
A new set of regulations has come into effect on Monday, whereby sole proprietorships operating directly or indirectly to benefit migrant workers can be deregistered and imposed a fine of MVR 100,000 each.
One of the objectives of the new regulations gazetted by the economic ministry is to create a transparent mechanism to ensure that small and medium enterprises and locals do not lose their economic opportunities due to business activities that are directly or indirectly intended to benefit a foreigner.
Those running such businesses will be fined MVR 100,000. Apart from imposing fines, the regulations also provide for barring any sole proprietorship registration in the offender's name for a period of five years.
It also provides for penalising traders for illegally selling goods on the pavement.
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A fine between MVR 1,000 and MVR 10,000 can be imposed if business activities are carried out on roadsides or outside the registered place of business
The new regulations also aim to facilitate the registration and operation of sole proprietorships, which is the most preferred type for small and medium enterprises.
Under the new regulations, individuals are required to submit basic information once a year to explain the business activities carried out by them.
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The registration certificates that were provided to inform other agencies that a business is legit for the purpose of opening bank accounts and conducting other business transactions will be discontinued
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Instead of the registration certificate, a corporate profile sheet will now be issued
As per regulations:
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Sole proprietorships can be registered for a period of 10 years
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The registration fee is MVR 500 for every 10 years
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MVR 500 every time the registration is renewed
Currently, there are 22,117 registered sole proprietorships in the country.
