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Registrar
Organization name
Abbreviation
Country
Madagascar
Phone
About
Madagascar
Capital
Official languages
Population
Currency
ISO 4217
Antananarivo
Malagasy and French
Approximately 27.4 million
Malagasy Ariary
MGA
FAQ
Q: What is the process for forming a company in Madagascar?
A: The process for forming a company in Madagascar involves several steps. The first step is to choose a company name and then draft the articles of association. The articles of association will specify the name of the company, the purpose of the company, the amount of share capital, the number of shares, and the rights and obligations of the shareholders. Once the articles of association are drafted, they must be notarized by a Madagascar notary. After notarization, the company must be registered with the Madagascar Business Registration Center.
Q: What types of companies can be formed in Madagascar?
A: There are several types of companies that can be formed in Madagascar, including sole proprietorships, partnerships, and corporations. The most common type of company formed in Madagascar is the Société à Responsabilité Limitée (SARL), which is similar to a limited liability company.
Q: What is the minimum share capital required to form a company in Madagascar?
A: The minimum share capital required to form a company in Madagascar depends on the type of company being formed. For an SARL, the minimum share capital required is MGA 2 million.
Q: Do I need to have a physical office in Madagascar to form a company?
A: Yes, a physical office in Madagascar is required to form a company. The company must have a registered office address in Madagascar, and this address must be used for official correspondence.
Q: What are the tax implications of forming a company in Madagascar?
A: Madagascar has a corporate tax rate of 20%. Additionally, Madagascar has signed tax treaties with several countries, which can help to reduce the overall tax burden.
Q: How long does it take to form a company in Madagascar?
A: The time required to form a company in Madagascar depends on various factors, such as the type of company and the complexity of the company structure. In general, it can take anywhere from a few weeks to several months to form a company in Madagascar.
Q: What are the ongoing compliance requirements for companies in Madagascar?
A: Companies in Madagascar are required to comply with various ongoing compliance requirements, such as filing annual financial statements and maintaining a registered office in Madagascar. Additionally, companies may be subject to other requirements based on their specific business activities.
Q: Can a foreigner form a company in Madagascar?
A: Yes, foreigners are allowed to form companies in Madagascar. However, they may be subject to additional requirements, such as obtaining a residency permit in Madagascar or appointing a local director.
Economy
"Madagascar has seen a steady improvement in its economy over the past few years. According to the World Bank, the country’s GDP grew by 4.2% in 2019, up from 3.7% in 2018. This growth was driven by increased investment in infrastructure, tourism, and agriculture. Inflation has also been kept in check, with the rate dropping from 6.2% in 2018 to 4.7% in 2019.
The country’s unemployment rate has also seen a decrease, dropping from 8.2% in 2018 to 7.7% in 2019. This is due to increased investment in the agricultural sector, which has created more jobs.
The country’s exports have also seen an increase, with exports reaching $2.3 billion in 2019, up from $1.9 billion in 2018. This is due to increased demand for Madagascar’s agricultural products, such as vanilla, coffee, and cocoa.
Overall, Madagascar’s economy has seen a steady improvement over the past few years, with increased investment in infrastructure, tourism, and agriculture leading to increased GDP growth, lower unemployment, and higher exports."
Taxation
Madagascar has a relatively simple tax system with different rates and rules for corporate and personal taxation. Here is an overview of the tax system in Madagascar:
Corporate taxation:
- The standard corporate income tax rate in Madagascar is 20%, which applies to both resident and non-resident companies.
- There is also a minimum corporate tax of MGA 1,000,000 (approximately USD 270) for companies with annual turnover below MGA 50,000,000 (approximately USD 13,500).
- Capital gains are generally taxed as regular income, but there are exemptions available for certain types of gains.
Personal taxation:
- Madagascar residents are subject to personal income tax on their worldwide income, with a progressive tax rate that ranges from 0% to 35% depending on income level.
- Non-residents are only taxed on their income sourced from Madagascar.
- There is also a solidarity tax on high income earners, which applies to individuals with monthly income over MGA 10,000,000 (approximately USD 2,700) at a rate of 2%.
- Capital gains are generally taxed as regular income, but there are exemptions available for certain types of gains.
Tax payment process and calendar:
- The tax year in Madagascar is from January 1st to December 31st of the same year.
- Taxpayers are required to file their tax returns by April 30th of the year following the tax year.
- Corporate income tax payments are made quarterly, with deadlines of March 30th, June 30th, September 30th, and December 30th.
- Personal income tax payments are made on a monthly basis, with deadlines on the 15th of each month.
- Late tax payments are subject to penalties and interest charges.
Madagascar has been implementing tax reforms in recent years to improve tax collection and compliance. However, tax evasion and informal economic activity remain significant challenges for the country's tax system.
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