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Madagascar is an island nation located in the Indian Ocean off the eastern coast of Africa. The country is rich in natural resources, including graphite, coal, salt, gemstones, and quartz. Unique flora and fauna, a warm climate, and beautiful beaches contribute to tourism development. The opportunity to buy a company in Madagascar will be of interest to investors who plan to do business with the countries of Africa. With them, the state has signed many agreements. The presence of six major ports also facilitates active international trade. In addition, entrepreneurs who intend to register a company in Antananarivo or any other city in Madagascar can receive tax-free income outside the country.
Н2 Advantages of registering a company in Madagascar
Н2 Main forms of legal presence and doing business in Madagascar
What form an investor decides to open a company in Madagascar will depend on the requirements for the amount of share capital and management bodies, the cost of setting up a business, the timing of opening a firm, and the amount of taxes.
Н2 Registration procedure in Madagascar
The L’Economic Development Board of Madagascar is responsible for issuing permits for new companies. To open a business in Madagascar, you have to:
Opening a company in Madagascar in the EDBM single window seems easy at first glance. However, bureaucratic red tape can take up to 4 months.
Н2 Legislation and Regulatory Environment of Madagascar
Foreign investors and resident individuals can buy a company in Madagascar and equitably engage in all remunerated activities. In addition, non-resident owners can own a wholly owned business and repatriate their income without any limit on the amount. The exception is the telecommunications sector, where the share of foreign investors can be at most 66%.
If you decide to open a company in Madagascar and operate in banking, insurance, mining, oil and gas, medicine, and pharmaceuticals, you must consider the additional regulations. They apply to both foreign and local entrepreneurs.
Н2 Madagascar’s tax system
Resident companies are subject to income tax, regardless of where they do business. Non-residents — only if they receive income in the territory of the state. The amount of income tax is:
There is also a tax on imports and property ownership, VAT, excise taxes, and social and parafiscal payments.
Н2 Open a business in Madagascar: how the lawyers of Prifinance can assist
An investor must familiarize himself with the legal regulations and determine if the planned activity is regulated before establishing a company abroad. To buy a business in Madagascar and get the maximum benefit, it is necessary to understand the differences between the existing organizational-legal forms of companies and learn in detail about the tax system and regulatory authorities.
Prifinance lawyers will provide detailed advice and help you choose the best option regarding the comfort of doing business and tax optimization. Our staff will assist in preparing and submitting a package of documents that will quickly register the company and begin the planned activities. In addition to full support of opening a company, we provide accounting services.
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