Benefits of Making Business in maldives | Buy & Sell Business

1. BENEFITS OF MAKING BUSINESS IN MALDIVES WWW.MERGERSCORP.COM

2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

3. BENEFITS OF MAKING BUSINESS IN MALDIVES WWW.MERGERSCORP.COM

4. Country Overview Maldives, in full Republic of Maldives, also called Maldive Islands, independent island country in the north-central Indian Ocean. It consists of a chain of about 1,200 small coral islands and sandbanks (some 200 of which are inhabited), grouped in clusters, or atolls. The islands extend more than 510 miles (820 km) from north to south and 80 miles (130 km) from east to west. The northernmost atoll is about 370 miles (600 km) south- southwest of the Indian mainland, and the central area, including the capital island of Male (Male’), is about 400 miles (645 km) southwest of Sri Lanka.

5. Executive Summary Maldives has a developing economy based on fishing, tourism, boatbuilding, and boat repairing. The gross national product (GNP) per capita is among the lowest in the world. Most of the population subsists outside a money economy on fishing, coconut collecting, and the growing of vegetables and melons, roots and tubers (cassava, sweet potatoes, and yams), and tropical fruits. Cropland, scattered over many small islands, is minimal, and nearly all of the staple foods must be imported. The constitution of the Maldives was adopted in 2008. The head of state and government is the president, assisted by a vice president and a cabinet. The president and vice president are directly elected by universal suffrage to a maximum of two five- year terms.

6. Introduction – Doing business in Maldives Maldives is ranked 147 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Maldives deteriorated to 147 in 2019 from 139 in 2018. Tourism and fishing industry are the two main sectors of Maldives. The country earns most of its revenue from these two sectors. Because of its highly developed economy, business personality all over the world wants to invest in Maldives. Here are some of the main reason to invest in Maldives. • Highly developed economy & new business opportunities. • Low corporate tax rate. • Stable political condition.

7. Conducting business in Maldives proprietorship, partnership and limited liability company. According to the country’s Business Registration Act the businesses to start must be registered under the following forms: Company under the Maldives act • Partnership Act • Corporative Society Act • Sole Proprietorship Act The registration process for a sole proprietorship and partnership is easy and less costly compared to a company. With a company, significant paperwork is involved in the registration process. There are three main types of legal entities that could be considered to start a new business in Maldives; sole

8. Taxation in Maldives Under the Act, tax is imposed at the rate of 15% on profits exceeding MVR 500,000 (approx. USD 32,425) in a tax year. A lower rate of 5% is applicable to companies resident in the Maldives generating all of their income from outside the Maldives. There are No Personal Income Tax and Corporate tax in Maldives. Withholding Taxes : Dividends: 0%, Interests: 0%, Royalties: 10% (non-resident). Social Security Contributions Paid By Employers : 7%

9. Trade Maldives is the 166th largest export economy in the world. In 2017, Maldives exported $309M and imported $1.39B, resulting in a negative trade balance of $1.08B. In 2017 the GDP of Maldives was $4.87B and its GDP per capita was $16.7k. The top exports of Maldives are Petroleum Gas ($144M), Fish Fillets ($61.2M), Non-fillet Fresh Fish ($48.4M), Processed Fish ($26.2M) and Processed Fish ($6.78M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Refined Petroleum ($35M), Broadcasting Equipment ($35M), Other Furniture ($29.6M), Iron Structures ($25.1M) and Insulated Wire ($24M).

10. Banking in Maldives Bank of Maldives (BML) is the leading financial institution in Maldives established on November 11, 1982. Known locally as “the national bank”, BML is a public limited company with majority ownership held by the Government of Maldives. The main business of the Bank is retail banking, in addition to handling development banking activities in all the atolls. The Commercial Bank of Maldives is a joint venture between Tree Top Investments Pvt Ltd (TTIL) and the Commercial Bank of Ceylon PLC (CBC).

11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

12. Looking to Buy or Sell a Business? CONTACT US NOW FOR A FREE BUSINESS VALUATION WWW.MERGERSCORP.COM

13. MergersCorp.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Member firms of the MergersCorp network of independent firms are affiliated with MergersCorp International. MergersCorp International provides no client services. No member firm has any authority to obligate or bind MergersCorp International or any other member firm vis-à-vis third parties, nor does MergersCorp International have any such authority to obligate or bind any member firm. Copyright © 2020 MergersCorp International. All rights reserved. 13 © Midaxo 2018 www.midaxo.com