There are many great business ideas in Madagascar that investors can take advantage of, however, certain business industries are subject to strict regulations, requiring permits or licenses from relevant ministries.

Some permits must be secured before a company is established, while others are needed post-incorporation. 

This article provides an overview of the relevant activities requiring such authorizations, detailing their significance and the regulatory processes involved.

Overview of Key Activities and Permit Requirements

The table below summarizes the most commonly regulated activities in Madagascar, highlighting their economic or cultural importance and the permits required:

Activity	Why Famous	Permit Required
Restaurant Operations	Thriving sector due to tourism and local demand	Preliminary approval and operating license from the Ministry of Tourism, specific to categories (e.g., buffets, fast food, catering)
Tourism Businesses	Madagascar’s biodiversity and ecotourism draw global interest	License A (travel agencies), License B (tour operators), or License C (specialized services) from the Ministry of Tourism via EDBM
Fishing (Commercial)	Critical industry tied to coastal livelihoods and exports	Fishing licenses for Categories I-III (local/chartered ships) or Category IV (foreign vessels) from the Ministry of Fisheries and Aquaculture
Mining	Rich mineral resources (e.g., nickel, cobalt, gold) are an economic cornerstone	Research (PR), exploitation (PE), or small-scale (PRE) permits from the Ministry of Mines via the BCMM
Construction	Growing infrastructure and urban development, especially in tourist/industrial zones	Construction permits from local authorities, often with environmental approvals via EDBM for larger projects

Restaurant License (Preliminary Approval)

Opening a restaurant in Madagascar is a promising venture, particularly in tourism-driven areas and urban centers.

However, different types of dining establishments are subject to specific regulations. 

• Buffets, often found in transportation hubs, must meet minimum size standards and be properly maintained. They also require qualified management, including a kitchen supervisor and a dining room manager.
• Snacks and cafés serve meals and beverages throughout the day with simple menus, adhering to regulations on space and furniture condition.
• Fast food outlets, offering prepackaged meals for on-site or takeaway consumption, follow similar guidelines to snacks and cafés but must also comply with additional requirements related to takeaway services.
• Tea rooms, which specialize in non-alcoholic beverages, pastries, and dairy-based treats, must meet minimum legal size requirements. 
• “Tables d’hôte” operate from the manager’s residence, catering to a specific clientele, and must ensure proper cold storage and space compliance. 
• Catering services, which deliver pre-ordered meals rather than serving on-site, require a diploma in food service and relevant industry experience.

Before opening, restaurant owners must obtain preliminary approval from the Ministry of Tourism. This step involves submitting documents such as site plans, wastewater treatment plans, and property registration papers. 

Once approved, they must apply for an operating license, which requires details about staff qualifications, building permits, business insurance, and compliance with health and safety regulations.

A ministry agent conducts an inspection to ensure compliance before the final license is granted. 

Catering businesses and tables d’hôte follow a different process, but they must still meet food safety standards and professional qualifications.

Tourism License

Tourism plays a significant role in Madagascar’s economy, making licensing essential for businesses involved in travel and hospitality.Depending on the type of service, operators must obtain specific licenses. 

Travel agencies that handle bookings for flights, hotels, and transport require a license that mandates a minimum 25-square-meter commercial space, adequate infrastructure, qualified personnel, and liability insurance.

Tour operators, who design and sell travel packages, follow the same conditions but must also provide a financial guarantee based on revenue.

Businesses offering specialized tourism services, such as vehicle rentals or scuba diving excursions, need a dedicated workspace, skilled staff, and insurance tailored to their activities.

The licensing process is managed by the Economic Development Board of Madagascar (EDBM) in coordination with the Ministry of Tourism.

Applicants must submit a formal request along with identification documents, criminal record certificates, company statutes, and proof of liability insurance. After verification, a site inspection is conducted to confirm compliance before the license is issued.

Commercial Fishing License

Fishing is a crucial industry in Madagascar, particularly for coastal communities.

The country’s fishing regulations classify activities based on the type of vessel and fishing methods.

Traditional fishing, conducted on foot or with non-motorized boats, is primarily for local consumption.

Artisanal fishing involves motorized boats with engines of 50 horsepower or less, supplying both local and regional markets.

Industrial fishing, which uses vessels exceeding 50 horsepower, is mainly for large-scale commercial purposes, including exports.

Fishing vessels are further categorized based on ownership and landing practices. 

Malagasy-owned ships that land their catches locally fall under Category I, while Category II covers foreign-owned ships chartered by Malagasy entities under the same conditions. 

Category III includes foreign vessels that operate under national licenses and land their catches in Madagascar.

Category IV encompasses all other foreign vessels operating under international agreements, which require special authorization.

For vessels under Categories I to III, a fishing license is required from the Ministry of Fisheries and Aquaculture. This license, valid for 12 months, is recommended by the Interministerial Commission and specifies fishing zones, permitted species, approved methods, and associated fees.

Category IV vessels require separate authorization under international fishing agreements. Recreational fishing is allowed but must remain strictly non-commercial.

Violations of fishing regulations can lead to license suspension or legal penalties.

Mining License

Madagascar’s mining industry is regulated under the 2023 Mining Code, which applies to all solid, liquid, and gaseous minerals except water and hydrocarbons.

Recent updates to the code have introduced significant changes, including an increase in mining royalties from 2% to 5%. Of this, 3% is allocated to the central government, while 2% goes to local communities.

The duration of exploitation permits has also been reduced from 40 years to 25 years, with a single renewal option for an additional 15 years.

Mining activities require specific permits depending on the stage of operations. The Permis de Recherche (PR) allows for exploration and research, while the Permis d’Exploitation (PE) is required for commercial extraction.

Small-scale operators may apply for the Permis de Recherche et d’Exploitation Artisanale (PRE), which combines research and extraction rights on a limited scale.

Permits are issued by the Bureau du Cadastre Minier de Madagascar (BCMM) under the Ministry of Mines.

The application process follows a first-come, first-served approach. Applicants must submit an initial request, undergo a preliminary assessment, and pay the required fees.

Upon approval, the permit is granted, but additional environmental and technical clearances may be required for large-scale projects.Environmental regulations are particularly strict, ensuring that mining activities do not cause significant ecological harm.

Construction License

With Madagascar’s expanding infrastructure needs, construction remains a growing sector. 

All major construction projects require permits to ensure compliance with urban planning laws, safety regulations, and environmental standards. 

Building permits are issued by local municipal authorities, while environmental approvals for large-scale developments are managed by the Economic Development Board of Madagascar (EDBM).

To obtain a construction permit, developers must submit site plans, structural engineering reports, and, in some cases, an environmental impact assessment.

Authorities review these documents to ensure that projects adhere to zoning regulations and safety requirements.

For significant projects, periodic inspections are conducted throughout the construction process to verify compliance.

Summary

Starting a business in Madagascar involves navigating a structured regulatory system designed to ensure compliance with legal, environmental, and safety standards.

Whether in the food, tourism, fishing, mining, or construction industries, obtaining the necessary permits is a crucial step in establishing and running a successful operation. 

Entrepreneurs should work closely with the relevant government agencies, such as the Ministry of Tourism, Ministry of Fisheries, Bureau du Cadastre Minier de Madagascar, and local municipalities, to ensure compliance with licensing requirements. 

As this process can be complex and time-consuming, Madagascar Invest is here to assist you in setting up and registering your business efficiently. Take advantage of our strong presence on the Big Island and our deep local expertise to navigate regulatory procedures with ease and confidence.