New rules on sole proprietorships have come into effect in order to prevent secret businesses run by foreigners.
Under the sole proprietorship law, foreigners are banned from operating businesses that are registered under the names of Maldivians.
The economic ministry said the new rules were created to enforce the law and ensure convenience for businesses by making online arrangements.
The ministry believes it would tackle the issue of secret businesses run by foreigners that negatively affect small and medium enterprises and limit economic opportunities for locals.
According to the rules, Maldivians who assist businesses from which the revenue is collected by foreigners will have their business registration revoked.
They will also be banned from registering a sole proprietorship for five years and face a fine of MVR 100,000 (USD 6516).
The rules also prohibit selling things on the pavement in front of shops. This could be fined with an amount between MVR 1000 and MVR 100,000.
Official figures show that there are over 22,117 sole proprietorships registered in the country. The ministry is holding weekly sessions to create awareness about the new rules.
