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Councils granted power to operate guesthouses, shops

A guesthouse located in K. Dhiffushi. (File Photo/Sun/Fayaz Moosa)

Island Councils have been granted permission to create local authority companies to operate guesthouses and general goods stores.

Ministry of Economic Affairs publicized amendments to the act stating that only bank accounts opened under the company name should be used for all financial transactions.

In addition to this, the amendment divided things that can be done to achieve company objectives into two categories. It highlighted 15 things that cannot be done under conducting businesses on an island, atoll or by an individual.

Councils are allowed to conduct any halal businesses such as education institutions, hospitals, clinics, guesthouses, tourist hotels, operate an airport, operate a pharmacy or general goods shops.

The second part noted was the type of businesses though run by individuals, that cannot provide sufficient goods or services. These include education institutions, waste management, clinics and hospitals.

Furthermore, the amendment stated that the council should be holding all 100 percent shares for any of these businesses.

Under the Decentralization Act, the councils are granted the power to create companies and conduct businesses with the public.  

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