In Madagascar, forming a company is an easy procedure. Investment authorizations are no longer required for an LLC to be wholly foreign-owned. At least one of its executives, however, must be based in Madagascar. A newly founded company (domestic or foreign) must register with the Ministry of Commerce and Trade to engage in international trade. At the one-stop shop, businesses can get their statistical card, tax registration confirmation, commercial registration number, and professional card. They must also register for social security and health insurance, which can be done through the one-stop-shop run by the Economic Development Board of Madagascar (EDBM). Companies in Madagascar are free to open and keep foreign currency bank accounts. There are no longer any minimum capital requirements.
Company Registration Procedure
The procedure of company registration in Madagascar includes:
Obtaining a temporary tax identification number
The entrepreneur must receive a provisional fiscal identity number before registering the business. To do so, the entrepreneur must first apply online and then submit the registration form along with other documentation to the Madagascar Economic Development Board (EDBM) fiscal. The procedure is free of charge.
Visiting the EDBM with your NIF and the relevant registration forms
When the entrepreneur arrives at the one-stop store, he or she must stop at the front desk to have the documents verified. The front desk double-checks that the forms were filled out accurately and that no information is missing (these forms are available online and the entrepreneurs either print them at home or obtain them at the registry). This process has no charge.
Paying a visit to the IRS
The entrepreneur goes to the tax authority desk once the front office clears the documents and ensures that everything is in order. They will next assess the information provided and issue a charge.
Getting a nominal check from any commercial bank
The entrepreneur goes to any commercial bank and obtains a nominal check for the amount owed when the tax authority issues the carnet with the value. Typically, the fee is 0.5 percent of the share capital. The provisional income tax is roughly 320,000 dollars, and the bank normally charges a fee of 10,000 dollars to issue the check.
Filling out the registration form and paying the administrative fees
Deposit legislation, apply for a professional license (carte professionnelle), and obtain a final fiscal identification number, and statistical identification. After receiving the receipt from the tax authority, the entrepreneur returns to the front office to file the application for registration and pay the administrative fees to EDBM. The entire procedure takes four days. Fee structure:
- MGA 16,000 for commercial registration
- MGA 2,000 for deed registration
- Registration with the Institut National de la Statistique Malgache (INSTAT) costs MGA 40,000.
Filing a notice of constitution
Legal notice of the constitution must be published in a French newspaper by entrepreneurs. The publication can be obtained by contacting the EDBM or a local French newspaper. The price is determined by the size of the advertisement. Because the ad will be shared with other companies, it will cost around MGA 18,000 if contracted through EDBM. Most businesses, however, prefer to do it directly with the newspaper so that they may select the size of publishing that best meets their needs. It will cost around MGA 40,000 in this situation. The information from the tax ID, statistics ID, and the firm’s registration number must be provided by the entrepreneur.
Getting the K-Bis
Get the K-Bis from EDBM. The K-Bis is a document that contains all of the company’s pertinent information. It includes the tax ID, statistics ID, registration number, and publishing date of the newspaper. GA 2,000 is the price.
Registering workers with Social Security
To enroll for health insurance, the employer must register his workers with the National Social Security Fund (Caisse Nationale de Prévoyance Sociale) and submit two copies of an application form (bulletin d’adhesion nouveau membre) along with a list of all employees’ names and ID cards.
Registering workers with Health Insurance
It is necessary to join an insurance scheme. The public insurance program OSTIE is open to everyone and registration is free. Companies, on the other hand, can choose the services of a private insurance program. The additional expense is not tax-deductible if they want to do so.
