General information about company creation in Madagascar
Companies that are settled in Madagascar are classified in three main categories : Limited Liability Company (Or SARL), Limited Company (Ltd) and Unlimited Liability Company (SARLU). These different forms of company are under the law and should be recorded at the trade regime. The number of employees and the amount of capital used are the main criteria for the classification of a company.
Depending on their statutes, the companies set up in Madagascar could be founded by an individual or a group of persons. The funds dedicated to the management of a structure may belong to a native person or a foreigner. Thus, the Economic Development Board of Madagascar (EDBM) is the only place that is made for centralizing all the different steps related to company creation here in the big island.
Rights to pay for company creation
Company Statutes are the main documents to be provided. The registration is about 0.5% of the share capital with a minimum charge of 10,000 Ar.
A recorded lease contract or commercial lease and a copy of Land title of the place are also needed. The registration fee is up to 2% of the total rent for the term of the lease.
A power of attorney is also required. This is for a designed person to be in charge of representing the company (in fact MDG Services) in following the documents of creation in every step. It only costs 2,000 Ar.
Registration at the Trade and Company Registry (RCS) : 16,000 Ar.
Statistical Registration (STAT) : 40,000 Ar.
If IR options (Taxes on Income)
- 100,000 Ar for taxpayers exercising agricultural, craft, industrial, mining, hotel, tourist or transportation activities.
- 320,000 Ar for other companies.
If IS options (Synthetic Tax)
- 16,000 Ar for farmers, livestock raisers, fishermen, small mining extractors, carriers/good-handlers using non-motorized vehicles (cart, rickshaw, dugout canoe etc.).
- 50,000 Ar for craftsmen, small restaurant managers, small producers.
- 100,000 Ar for mining workers, artists and such persons, salespersons, hotelkeepers, contractors, restaurant managers.
- 150,000 Ar for self-employed or freelancers, multiple activities, and others.
Brief, the rights and fees required for a company creation vary to 132,000 and 436,000 Ar (or approximately 38 to 125 euros with a change of 3,500 Ar).
EDBM has many ministerial departments that are located in his local so that he can assure all the different services related to company creation such as:
- EDBM-Taxation: Ministry of Finance and Budget (MFB) / Directorate General of Taxes (DGI)
- EDBM-RCS: Ministry of Justice (MINJUS) / Trade and Registry Court
- EDBM-INSTAT: National Institute of Statistics (INSTAT)
Once these steps are done, it will be justified by the availability of the professional cards in the name of the company. The next step will be the opening of a bank account of the Company.
It is really important to know all the payable fees when creating a company. MDG Services, in a tight collaboration with EDBM, will guide through all the administrative steps related to the creation of your Company in Madagascar. For further information or if you want an estimation of our services, please contact us at + 261 20 22 372 47.