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Country Commercial Guides for FY 2000: Maldives Report prepared by U.S. Embassy Colombo, Sri Lanka, released July 1999   Note*

CHAPTER III

MARKETING U.S. PRODUCTS AND SERVICES

Trade with the Maldives is centered in Male', though a number of the tourist resorts directly procure supplies and equipment from overseas suppliers. There are a number of traders who also import goods for resale to the tourism sector. Working with a local agent may be helpful, especially if stocking parts and providing after-sales service is important. Still, it is possible to sell directly to traders and resorts in the Maldives, although quantities demanded are often relatively small.

Many resort operators are aware of U.S. products and brands, through catalogs, the Internet, and other sources of information. Some order directly from U.S. mail-order catalogs and websites. Others purchase U.S. products from agents and traders from Singapore, Sri Lanka, India or the Middle East. U.S. products are considered to be of high quality, but also are thought to be less price competitive. U.S. marketers should stress the benefits of greater durability and less frequent servicing of products associated with high quality (and a correspondingly higher price tag).

Government purchases are often made by public tenders. Tender procedures are often not fully transparent, and the basis for tender decisions is not always readily accessible or clearly explained. Preference might be given to bids from South Asian Association for Regional Cooperation member countries, although this is not always stipulated in tender announcements.

The government has introduced a Companies Act to govern the formation, registration, and management of companies in the Maldives, with effect from July 1, 1997. Companies are required to submit a memorandum and articles of association to the registrar of companies together with registration and annual fees (depending on the amount of authorized capital of the company). Under the Act, companies registered outside the Maldives which seek to operate in the Maldives will have to register as a foreign company doing business in the Maldives. To do so, foreign companies must obtain necessary permits under the laws and regulations of the Republic of Maldives and submit the following information to the registrar: 1) Copy of the permit issued to the company to conduct business in the Republic of Maldives; 2) Copy of the memorandum and articles of association; 3) Names and addresses of the Board of Directors; 4) Names and addresses of a person or persons who shall represent the company in the event of any legal proceedings against the company; 5) Registered address of the company; and 6) Address of the place of business in the Maldives. Questions about the registration of companies should be addressed to the relevant Government authority, the Ministry of Trade, Industries and Labor (see appendix).