General information about setting up a company in Madagascar
Are you thinking of setting up a company in Madagascar? Here, first and foremost, there are three types of legal structure available to you to bring your entrepreneurial project to fruition. Whether it’s a Limited Liability Company (LLC), a Public Limited Company (PLC) or a Sole Proprietorship (SP), the choice is yours. In other words, choosing the most appropriate legal form depends on your specific needs. It also depends on your business project. Moreover, sales are one of the criteria for classifying a company.
Whether you’re a Malagasy or foreign entrepreneur, you can set up and invest in a company in Madagascar. Share capital may come from your own funds or from external contributions, regardless of nationality.
To help you navigate Madagascar’s legal and tax landscape, the EDBM, a one-stop shop, has been set up to centralize the various procedures involved in setting up a company on the Big Island. MDG Services also offers personalized assistance in setting up your company in Madagascar. Our experienced team will guide you through the administrative and tax formalities, ensuring a smooth process that complies with current regulations.
Fees for incorporating a company in Madagascar
Have you decided to set up your company in Madagascar? The administrative procedures and associated costs are relatively affordable.
- The company’s articles of association are the main document required. The registration fee is 0.5% of the share capital, with a minimum charge of 10,000 Ar.
- A domiciliation contract or a certified lease contract, together with a copy of the land title for the premises, are also required. The registration fee is 2% of the rent for the duration of the lease.
- A power of attorney is required for the appointment of an agent to represent the company in the follow-up of creation files for 2000 Ar.
- Registration : Trade and Companies Register (TCR) 16,000 Ar.
- Statistical registration (STAT): 40,000 Ar
- Income tax options
- 100,000 Ar for taxable persons engaged in agricultural, craft, industrial, mining, hotel, tourism or transport activities
- 320,000 Ar for other companies
- ST (Synthetic Tax) options
- 16,000 Ar for farmers, livestock breeders, fishermen, small-scale miners, transporters using non-motorized vehicles (carts, rickshaws, pirogues, etc.)
- 50,000 Ar for artisans, gargotiers and small producers
- 100,000 Ar for mining craftsmen, artists and the like, shopkeepers, hoteliers, service providers and restaurateurs
- 150,000 Ar for independent teachers and others, multiple activities.
You can set up a company in Madagascar for as little as 150 euros, not including the services provided by your support firm.
Administrations concerned
The EDBM has a number of ministerial departments on its premises to provide various business start-up services :
EDBM – Taxation : Ministry of Finance and Budget / Directorate General of Taxes
EDBM – RCS : Ministry of Justice/Commercial Court Registry
EDBM – INSTAT : National Institute of Statistics
Once the various formalities have been completed, incorporation is confirmed by the availability of business cards in the company’s name. The next step is to open a bank account in the company’s name.
There’s no doubt about the costs involved in setting up a company. Working closely with EDBM, MDG Services can guide you through the administrative procedures involved in setting up a business in Madagascar. For more details, contact us for a quote.