Creating a Company in Madagascar: Essential Steps

Published on and written by Cyril Jarnias

Madagascar offers numerous opportunities for entrepreneurs looking to set up their company. However, it is essential to be well-versed in the administrative procedures to follow. Here is a detailed guide to the key steps for launching your business on the Big Island.

The essential steps to bring your project to life

Creating a company in Madagascar involves several important administrative procedures:

1. Choose the legal form of your company

The first step is to determine the legal status best suited to your activity. The most common forms are: – SARL (Société à Responsabilité Limitée / Limited Liability Company) – SA (Société Anonyme / Public Limited Company) – EURL (Entreprise Unipersonnelle à Responsabilité Limitée / Single-Member Limited Liability Company) – SNC (Société en Nom Collectif / General Partnership)

2. Draft the company’s bylaws

The bylaws define the operating rules of your company. It is recommended to consult a legal expert to ensure their compliance.

3. Open a bank account

Opening a bank account in the company’s name is mandatory to deposit the share capital.

4. Complete the formalities with the EDBM

The Economic Development Board of Madagascar (EDBM) centralizes the company creation procedures. You will need to submit your complete file there.

5. Obtain the Tax Identification Number (NIF)

The NIF is essential for any commercial activity in Madagascar. It is issued by the General Directorate of Taxes.

6. Register with the Trade and Companies Register (RCS)

This step formalizes the creation of your company and grants it legal personality.

7. Register with the CNaPS

Registration with the Caisse Nationale de Prévoyance Sociale (National Social Insurance Fund) is mandatory for any company employing staff.

Good to know:

The EDBM offers a one-stop shop that significantly simplifies these procedures by grouping them in a single location. This helps reduce company creation time to approximately 5 working days.

The winning file: essential documents based on your legal structure

The documents to provide vary depending on the chosen legal form. Here are the main required documents:

For an SARL or SA: – Company bylaws (in 6 copies) – Declaration of subscription and payment of capital – Minutes of the constitutive general meeting – Identification documents of shareholders and directors – Proof of company domiciliation – Certificate of deposit of share capital

For an EURL: – Company bylaws (in 6 copies) – Declaration of the sole shareholder – Identification document of the sole shareholder – Proof of company domiciliation – Certificate of deposit of share capital

For an SNC: – Company bylaws (in 6 copies) – Identification documents of the partners – Proof of company domiciliation – Certificate of deposit of share capital

Good to know:

For foreign investors, additional documents may be required, such as a copy of the passport or a criminal record extract from the country of origin.

Keys to success for a hassle-free company creation

To optimize your company creation procedures in Madagascar, here are some practical tips:

– Get support from a local expert (lawyer, accountant) to navigate the administrative intricacies. – Prepare your file carefully in advance to avoid back-and-forth. – Take advantage of the EDBM’s one-stop shop services to centralize your procedures. – Anticipate delays, especially for obtaining certain documents like the criminal record extract. – Stay updated on regulatory changes that may impact procedures.

By following these steps and meticulously preparing your file, you will maximize your chances of launching your company in Madagascar under the best conditions.

Good to know:

The Malagasy government is continuously working to improve the business climate. New measures to simplify administrative procedures are regularly implemented to facilitate company creation.

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About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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