If you want to open a company in Madagascar you have come to the right place. In this article, we will go through the process of company creation in Madagascar step by step.
N.B: If you want the help of Madagascar Invest to register a company in Madagascar, please visit our company registration page.
How to Open a Company in Madagascar
Starting a company in Madagascar is done through a dedicated government office known as EDBM (Economic Development Board of Madagascar).
The process is fairly long-winded and complicated and will involve a lot of running between government offices, gathering documents, making photocopies and having documents sent from your home country.
Therefore, the best investment you can make during this process is to hire a local “fixer” or an agency that has gone through this process before and which specialises in helping foreigners set up companies in Madagascar.
Although you will pay a modest fee for this service, it will save you a lot of time and headache.
The process of setting up your company in Madagascar can be roughly divided into 4 steps:
Step 1: Obtain all documents required by the EDBM
There’s a long list of documents to obtain which includes a birth certificate, a criminal record, a residence certificate from your home country, and more.
These documents must be deposited, either directly at the EDBM office, or through their online company creation portal.
You can download the official list of all the documents you need to deposit at the EDBM by clicking the button below.
Step 2: Deposit the documents to EDBM and pay fees
You will then be required to pay all the necessary government fees and processing fees.
Step 3: Receive your certificate of incorporation
When your company has been created, you will be asked to attend an appointment at the EDBM office, where you will be asked to sign the certificate of incorporation.
When this is done, you will receive the certificate, and your company will be official.
Facts about Madagascar Companies
- Madagascar companies can be fully owned by foreigners.
- A company can be set up remotely – no need to travel
- Minimum investment/minimum paid up share capital: US$1.
- A company in Madagascar is not required to have a corporate bank account
- A Madagascar company must file an annual tax return.
- A company must have a local representative who resides in Madagascar.
- The corporate tax rate in Madagascar is 20%
Requirements of a Madagascar company
There are certain requirements that all companies in Madagascar must live up to. This includes having a local address. All companies registered in Madagascar must have an address here.
In addition, a Madagascar company is required to have a local representative who resides in Madagascar. This is considered a formality, but is a requirement that the company must live up to.
If you already have an address in Madagascar and/or know someone who can act as your local representative, then you can use these to set up your company.
Otherwise, you will have to find a company which offers a “paper address” that you can use for your company, as well as a local representative.
Are Madagascar companies required to file taxes?
Yes, Madagascar companies are required to file annual taxes. If your company is dormant (without any economic activity) you must pay a small annual fee to the government to keep your company active.
Different company types in Madagascar
There are 5 different company types available in Madagascar
- Limited Liability Company (LLC) – French: Société a responsabilité limitée (SARL) Recommended
- Public Limited Company (PLC) – French: Societe Anonyme (SA)
- Free Zone Company (EPZ Company)
- Local Branch – French: Succursale
- Representative Office – French: Bureau de representation
Benefits of setting up a company in Madagascar
Why set up a company in Madagascar?
Everyone has his own reasons for wanting to create a company in Madagascar, but here are some of the most obvious benefits you will enjoy:
Madagascar presents great business opportunities
Madagascar is an emerging frontier economy with enormous potential for growth. There are so many business opportunities in Madagascar that remain untapped or underdeveloped and totally available for foreign investment.
Tourism
Madagascar expects to welcome 600,000 tourists per year by 2030 and will need 30,000 new accommodations in order to welcome so many visitors. So there are obvious opportunities for business in the Malagasy tourism industry.
Manufacturing
The manufacturing industry is booming in Madagascar. The textile industry is one area that is especially interesting due to the amazing textiles being produced here and the low cost of labor.
Agribusiness
Growing and processing food for sale on the local market or for international export is a sector with immense opportunities. Madagascar boasts millions of hectares of unexploited farmland that foreign investors can develop.
Real Estate
Houses are shooting up in Madagascar no matter where you turn. This real estate boom is caused by the rapid expansion of the middle class in Madagascar. A large segment of people with a higher income are demanding quality housing at an unprecedented rate, and this will continue to drive the Malagasy real estate market up for many years to come.
Mining
Due to the presence of precious metals, stones, rare earth deposits and enormous reserves of common metals such as nickel and copper, Madagascar provides incredible opportunities within the mining industry. These opportunities remain largely unexploited up until now.
Import/Export
Madagascar has a great wealth of ressources and products which you can export to the rest of the world. This includes vanilla (the black gold), spices, agricultural products, textiles, fruits, minerals, precious metals, local art, furniture, and more.
On the other hand, Madagascar also has a need for many products to be imported as they are not produced locally. This includes electronics, cars, luxury goods, and many other things.
Opening a company gives you access to Madagascar Residency
Opening a company will allow you to apply for a residence permit in Madagascar.
Using the Residency by Investment option, you can apply for a residence permit after opening your Madagascar company.
Opening a company is a fast and convenient way of obtaining residency in Madagascar.
A company can own property in Madagascar
Do you want to buy a property on our great island? Then we strongly recommend that you open a company in Madagascar. Opening a company will allow you to buy and hold properties through your legal entity.
Madagascar companies are allowed to own property. This gives you a more long-term option than the typical 99-year lease that is reserved for foreign real estate buyers in Madagascar.
Setting up a company is fast
To open up for foreign investors, the government of Madagascar has made recent improvements to the company registration procedures, making it faster than ever to open a company in Madagascar.
Company creation in Madagascar: Who’s it for?
There are many different types of people who can benefit from opening a company in Madagascar:
- People who want to do business in Madagascar
- People who want to export products from Madagascar
- People who want to import products to Madagascar
- People who want to purchase a property or a house in Madagascar
- People who want to settle permanently or temporarily in Madagascar
- People who want access to unrestricted travel in Madagascar
- People who work as digital nomads
N.B: If you want the help of Madagascar Invest to register a company in Madagascar, please visit our company registration page.
