On 3 September 2020, the Ministry of Economic Development (the Ministry) issued the Regulations on Registration of the Business Activity of Selling Food Items such as Fruits and Vegetables (Regulation Number 2020/R-81) (the Regulations), requiring businesses carrying on such activities to register the activity with the Ministry.

The Regulations stipulate that, in addition to registering the business under the Business Registration Act (Law Number 18/2014), persons selling food items such as fruits and vegetables (other than shops, bakeries, canteens, tea boutiques, cafes, restaurants and cafeterias) must register the activity as a separate business activity via the Ministry’s business portal: business.egov.mv. The requirement to register applies whether or not there is a fixed place of business, as well as to activities conducted via electronic means.

When applying for activity registration, the person must specify whether the activity is a retail business, wholesale business, retail and wholesale business, fresh market, or an online shop. The registrant must pay an administrative fee of MVR 500. Existing businesses carrying on such activity must register within 30 days of the date of effect of the Regulations.

Persons who carry on such activities without registering as stipulated in the Regulations will be required to pay a fine of MVR 10,000. Further, any registered activity which is found upon inspection by the Ministry to have violated any of the applicable conditions specified in the Regulations, will be fined MVR 5,000.

The Regulations would come into effect on 3 October 2020.