How To Start A Business in Madagascar

How to Start a Business in Madagascar - Step by Step Procedures

Starting a business in Madagascar requires adherence to various legal and regulatory steps. Below is a comprehensive guide for both locals and foreign investors to navigate the process smoothly.

Step-by-Step Guide for Malagasy Nationals

1. Business Idea and Feasibility Study: Develop your business idea and perform a market analysis to assess viability.
2. Choose a Business Structure: Decide on the legal form for your business, such as Sole Proprietorship, Limited Liability Company (SARL), or Joint Stock Company (SA).
3. Register the Business Name: Submit your desired business name for approval at the National Institute of Intellectual Property (INAPI).
   INAPI – National Institute of Intellectual Property
4. Register with the Commercial Court: Register your business with the Commercial Court to obtain your company’s legal identity and tax number.
   Estimated Fee: MGA 50,000 – MGA 200,000
5. Register for Taxes: Register your business with the Madagascar Revenue Authority (DGI) to obtain a Tax Identification Number (NIF).
   Estimated Fee: Free of charge
6. Obtain a Business License: Depending on the business activity, obtain the necessary license from the local municipality or ministry overseeing the sector.
   License Fee: Varies depending on business type
7. Open a Corporate Bank Account: Open a bank account in your business name to facilitate financial transactions and capital deposits.

Step-by-Step Guide for Foreign Investors

1. Obtain Investment Approval: Submit an investment proposal to the Madagascar Investment Promotion Agency (MIPA) for approval before starting the business.
   Madagascar Investment Promotion Agency (MIPA)
2. Choose a Business Structure: Foreign investors must register their business as a Limited Liability Company (SARL) or Joint Stock Company (SA).
3. Partner with a Malagasy National: For most sectors, foreign investors are required to partner with a Malagasy national or entity.
4. Register the Business: Submit the relevant documents (such as passport, proof of residence, and investment approval) to the Commercial Court and obtain your official business registration.
5. Work and Residence Permits: Foreign investors and their employees must apply for work and residence permits through the Ministry of Public Service and Labor.
   Estimated Fee: MGA 200,000 – MGA 500,000 per person
6. Tax Registration and Licensing: Register for tax purposes with the Madagascar Revenue Authority (DGI) and obtain any required licenses from the relevant ministry.

Estimated Duration

• For Locals: 2–4 weeks
• For Foreigners: 4–6 weeks (including approval from the Madagascar Investment Promotion Agency)

Useful Resources

• INAPI – National Institute of Intellectual Property
• Madagascar Investment Promotion Agency (MIPA)
• Madagascar Revenue Authority (DGI)