Local Authority Company regulation enables City councils, Atoll councils and Island councils to establish wholly or partly owned companies to carry out government approved business activities. Wholly owned local authority companies can be formed by one or more council.

Regulation on Local Authority Companies can be downloaded from https://www.trade.gov.mv/laws-regulations.

  1. Councils may establish wholly owned Local Authority Companies to engage in the following sectors if the private sector does not carry out business in the respective island.

    • Convention Center (shall consist of tourist hotel/guest house, meeting rooms, food establishments, shops)
    • Education Service Provision
    • Clinic
    • Hospital
    • Renewable Energy
    • Guest House or Tourist Hotel
    • Airport Operation/Management
    • Waste Management
    • Agriculture
    • Fish processing, establishing ice plants
    • Social Housing
    • Cable TV Service
    • Operating Boat Yards
    • Pharmacies
    • Shops (sale of basic/essential items)
  2. Councils may establish wholly owned Local Authority Companies to engage in the following sectors if the private sector does not cater for demand in goods and services in the respective island.

    • Convention Center (shall consist of tourist hotel/guest house, meeting rooms, food establishments, shops)
    • Education Service Provision
    • Clinic
    • Hospital
    • Renewable Energy
    • Waste Management
    • Agriculture
    • Fish processing, establishing ice plants
    • Operating boat yards
    • Clinic

This is not an exhaustive list. In order to cater for innovative ideas/solutions, councils can apply to seek approval for business activities other than what is specified in the regulation. Such requests should accompany an assessment on the impact on existing businesses engaging in the specific sector, competitiveness and value creation for citizens.

Application to register a Local Authority Company is received through the Business Portal. Please submit the application by selecting the respective type of Local Authority Company in the General Service Request menu.

Local Authority Company Directors Training

Local Authority Company Directors Training (LAC Directors Training) is designed to equip individuals to take on the responsibility of Executive or Non-Executive Director position of Local Authority Companies. This training aims to ensure that sufficient checks and balances are in place in these companies from inception, with a particular focus on good governance, financing operations, risk management, accountability and transparency. This is a mandatory training for those who aspire to become Directors of Local Authority Companies.

This training will be organized in person or virtually. If you wish to join this training, please send your expression of interest by completing the form here.


LAC Directors Training Calendar

  • 6th – 8th June 2022
  • 10th – 12th July 2022
  • 14th – 16th August 2022
  • 11th – 13th September 2022
  • 9th – 11th October 2022
  • 6th – 8th November 2022
  • 11th – 13th December 2022

LAC Directors are required to comply with the Fit and Proper Requirements prescribed by the Registrar of Companies. The requirements can be viewed here.