Madagascar (MG)
World's fourth-largest island, Madagascar offers extraordinary biodiversity (90% of wildlife found nowhere else), one of the world's lowest costs of living, warm French-speaking culture, and unique opportunities in vanilla, ecotourism, and development sectors.
Capital: Antananarivo
Region: Africa
Language: Malagasy
Currency: MGA (Ar)
Cost of living: Very affordable (index 15)
Emergency: 117
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Business Setup
Start a business or go freelance in Madagascar.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Determine your structure: Entreprise Individuelle (sole proprietor) is simplest; SARL/SARLU preferred if significant contracts or liability risk.
- 2 2. Register via EDBM (Economic Development Board of Madagascar) one-stop shop in Antananarivo (Immeuble FIMPITON, Ankorondrano). Bring passport, proof of address, business plan, and bank proof. Fee: Ar 50,000–300,000.
- 3 3. Obtain NIF (Numéro d'Identification Fiscale) from DGI (Direction Générale des Impôts). Required immediately after EDBM registration. Bring company registration extract and passport.
- 4 4. Obtain STAT (Numéro Statistique) from INSTAT (Institut National de la Statistique). Required alongside NIF.
- 5 5. Open a business bank account (compte professionnel) at BNI, BOA, BFV-SG, or BMOI. Required to invoice and receive payments. Allow 5–15 business days for account opening.
- 6 6. Determine TVA obligation: register for TVA if annual turnover expected to exceed Ar 200,000,000. File monthly TVA returns by the 15th if registered.
- 7 7. If hiring employees: register with CNAPS (social security) and OSTIE (occupational health). Deduct IRSA from employee salaries monthly.
- 8 8. Annual income tax return (déclaration annuelle des bénéfices): file by 15 May for the previous year.
- 9 9. Ensure work permit (Permis de Travail) as company director is obtained from the Ministère du Travail if foreign national.
Tax registration
DGI (Direction Générale des Impôts) Antananarivo — Ankorondrano. Apply in person or via EDBM one-stop shop. Website: impots.mg.
VAT threshold
Ar 200,000,000 annual turnover (~USD 44,000). Below this threshold, TVA registration is optional (can apply for the regime de synthèse — simplified tax regime).
Invoicing
Invoices must include: company name and address, NIF tax number, STAT number, invoice number (sequential), date, client details, description of services, amount excluding TVA, TVA rate (20%) and amount if registered, total including TVA, and bank account details. In French.
Social security
Self-employed individuals and company directors must register with CNAPS and pay both employee (1%) and employer (13%) portions of social contributions. Also register with OSTIE for occupational health coverage (1% + 5%). Total: approximately 20% of declared income.
💡 EDBM (edbm.mg) provides a one-stop shop for business registration that streamlines what was previously a complex multi-agency process. The regime de synthèse (simplified tax regime) for businesses under Ar 200M turnover replaces TVA with a simplified flat rate — confirm current rates with DGI or an accountant. Malagasy company law is based on the OHADA (Organisation pour l'Harmonisation en Afrique du Droit des Affaires) framework — legal advice is strongly recommended.
🏢 Business Structures
Entreprise Individuelle · Entreprise Individuelle (EI)
Sole Proprietorship / Individual Enterprise
None
Min. capital
3–7 business days via EDBM
Setup time
Liability: Unlimited personal liability
Setup cost: Ar 50,000–150,000 (EDBM one-stop shop registration)
Best for: Solo consultants, artisans, freelance translators, and small service businesses. Simple registration and low cost. Not recommended if significant business risk or multiple clients.
SARL · Société à Responsabilité Limitée (SARL)
Private Limited Company
Ar 200,000 minimum (approx. USD 45 — no longer the original Ar 2,000,000 since reforms)
Min. capital
7–14 business days via EDBM one-stop shop
Setup time
Liability: Limited to company assets
Setup cost: Ar 300,000–800,000 (notary fees + EDBM + registration)
Best for: Most businesses requiring limited liability protection. The standard structure for small and medium foreign-owned businesses in Madagascar. Required for foreigners operating independently.
SA · Société Anonyme (SA)
Public Limited Company / Joint Stock Company
Ar 20,000,000 minimum
Min. capital
3–6 weeks
Setup time
Liability: Limited to company assets
Setup cost: Ar 1,500,000–5,000,000 (notary + registration + legal fees)
Best for: Larger companies, those seeking external shareholders or listed status. Used by banks, insurance companies, and large enterprises in Madagascar.
SNC · Société en Nom Collectif (SNC)
General Partnership
None
Min. capital
5–10 business days
Setup time
Liability: Unlimited joint liability for all partners
Setup cost: Ar 200,000–500,000
Best for: Two or more partners in a trusted relationship. Simple but high-risk due to unlimited liability. Rarely used by expats.
Société Unipersonnelle à Responsabilité Limitée · SARL Unipersonnelle (SARLU)
Single-Member Private Limited Company
Ar 200,000
Min. capital
7–14 business days
Setup time
Liability: Limited to company assets
Setup cost: Ar 300,000–700,000
Best for: Solo foreign entrepreneurs who want limited liability. A SARL with a single shareholder. Practical for digital nomads and consultants who need a local company for contracts.
Business Setup
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