Starting a hospitality or restaurant business in Madagascar can be a rewarding opportunity, but it requires careful planning and compliance with official regulations.
Whether you want to open a hotel, ecolodge, guest house, or restaurant, understanding the legal procedures, required authorizations, and classification rules is essential.
This article walks you through the main steps, from obtaining prior approval (Avis Préalable) to setting up the business and securing the formal operating license (Autorisation d’Ouverture).
TL;DR: Setting up a restaurant and/or hospitality business in Madagascar requires a prior approval from the from the Ministry of Tourism as well as an operating license. Obtaining these permits can be done with the help of Madagascar Invest.
Definitions: Hospitality and Restaurant Business
Hospitality Business
A hospitality business in Madagascar includes establishments providing accommodation. These are commercial enterprises that offer rooms, suites, or bungalows, and often related services like meals and drinks.
Each type is defined with distinctive characteristics
| Hotels | Rent furnished rooms/suites to travelers for short or long stays |
| Motels | Usually located near roads, offering car facilities and easy access |
| Relais | Located on tourist circuits, offering accommodation and restaurant service |
| Ecolodges | Situated near ecotourism sites |
| Guest Houses | Often part of private homes or rural areas, designed for short stays. Note tha Only sole proprietors may open a guest house |
The government requires certain hospitality businesses to undergo an official “classement” which is a classification based on strict criteria of equipment, comfort, services, and staff qualifications.
The establishments subject to classification are: hotels, motels, relais, ecolodges, campgrounds, and restaurants
The Categories of classement
- Ravinala: Ranges from 1 to 3 levels (local standard), focusing on basic equipment, cleanliness, and essential services.
- Étoiles (Stars): Ranges from 1 to 5 stars (international standard), covering higher levels of comfort, extensive amenities, experienced staff, and advanced safety and accessibility.
- Camping grounds can be classified as 1 or 2-star only.
Note that the operating conditions, the standards of classified accommodation establishments, and the professional qualifications of the management staff are defined by Decree. More details can be found on the official website of the Madagascar tourism confederation.
Restauration Business
Restauration businesses are defined as commercial enterprises serving food and/or drinks to clients on-site, for take-away, or delivery. Each has distinct service profiles:
- Restaurants: Serve regular meals/drinks, with defined operating hours.
- Buffets: Located at transit points, providing quick service.
- Cafés and Fast-foods: Offer light meals, beverages, and sometimes operate in mobile setups.
Process: Authorizations and Required Documents
The process of creating a hospitality or restaurant business in Madagascar generally follows three main steps:
- Obtain the “Avis Préalable”: this process is only required if the type of establishment requires it.
- Set up the company: this is the process to register the business legally.
- Submit the application for the “Autorisation d’Ouverture”: this is the process to obtain the formal operating license. At the same time, submit the classification application (“demande de classement”) for establishments that are subject to it.
Avis Préalable (prior approval)
This process is required for most hotels, motels, relais, ecolodges, and restaurants and the request is made directly within the Ministry of Tourism. This covers new builds, extensions, or major renovations.
Some accommodations (e.g. guest houses, smaller businesses) do not require Avis Préalable. Their opening is simpler but requires compliance with core legal and environmental norms.
Documents Required for “Avis Préalable”
- Request letter to the Ministry of Tourism.
- Applicant information form.
- Certified copy of valid long-stay visa (for foreigners).
- Environmental description of nearby tourist, cultural, or natural sites (within 500m).
- Site plan (plan de masse) of the project.
- Project sketch plan with dimensions.
- Wastewater management plan.
- Land registration or cadastral plan.
- Certificate of legal status of land (<3 months old).
- Registered lease contract.
Depending on the project’s size, you will also need:
- A PREE (an environmental engagement program) for medium projects, such as:
- Hotels with 50 – 120 rooms
- Restaurants with 60 – 250 seats
- Recreational/tourism developments of 2 – 20 hectares
- An environmental permit from ONE (with an Environmental Impact Study) for large projects or those in sensitive zones, such as:
- Hotels with more than 120 rooms
- Restaurants with more than 250 seats
- Recreational/tourism projects over 20 hectares
Standard Documentation for Setting up the Business
- Copy of the National Identity Card (CIN) for directors, administrators, and the Chairman of the Board of Directors, or a copy of the passport with a long-stay visa (for foreigners).
- Declaration concerning company officers.
- Articles of association of the company (paraphed on each page and signed on the last page by all partners).
- Copy of the landlord’s CIN.
- Location plan validated by the Fokontany.
- Property certificate or copy of the tax payment record, certificate of legal situation dated less than 3 months, or copy of the property title in the name of the landlord of the registered office.
- Lease contract of the registered office, paraphed on each page and signed on the last page by both parties.
These documents are required for the creation of the establishment itself and must be submitted to the EDBM (Economic Development Board of Madagascar).
Autorisation d’Ouverture (AO): The formal operating license
For establishments requiring “Avis Préalable”, you must first secure it, then apply for the AO.
For small establishments without “Avis Préalable”, the process is lighter, but many of the same documents are still required.
For Establishments Requiring Avis Préalable
Businesses with significant infrastructure – such as classified hotels, motels, relais, ecolodges, and most restaurants – must first secure an “Avis Préalable” from the Ministry of Tourism before applying for their operating license (“Autorisation d’Ouverture” or AO).
Here’s an overview of the documents required for AO
| Documents | With “Avis Préalable” | Without “Avis Préalable” |
| Official written request | ✔ | ✔ |
| “Avis Préalable” | ✔ | ✘ |
| Applicant information form | ✔ | ✔ |
| Construction permit + certificate of conformity (certified copies) | ✔ | ✔ |
| Criminal record (<3 months) | ✔ | ✔ |
| Valid long-stay visa (for foreigners) | ✔ | ✔ |
| Professional civil liability insurance | ✔ | ✔ |
| Diplomas/certificates of managers & staff | ✔ | ✔ |
| Certified statutes (if incorporated) | ✔ | ✔ |
| National ID or passport | ✔ | ✔ |
| Brief environmental description | – | ✔ |
| Land registration or cadastral plan | – | ✔ |
| Certificate of legal status of land (<3 months) | – | ✔ |
| Registered lease contract (if rented) | – | ✔ |
| Proof of authority to sign (if not the owner) | – | ✔ |
Note that the processing time from the “Avis Préalable” to the “Autorisation d’Ouverture” may take 20 to 45 days.
Key Takeaways
- Opening a hotel in Madagascar requires prior approval from Ministry of Tourism.
- Opening a restaurant in Madagascar requires an operating license.
- If you need help obtaining any of the aforementioned licenses, contact Madagascar Invest.
Conclusion
Opening a hospitality or restaurant business in Madagascar involves following structured procedures and submitting the right documents.
By understanding the requirements for prior approval, company registration, and the Autorisation d’Ouverture – along with the classification process for relevant establishments – you can ensure your business starts on a solid legal and operational foundation.
Madagascar Invest can support you in setting up your business in Madagascar and guide you through the intricacies of the administrative processes, making it easier to comply with regulations and start operating smoothly.
