Doing Business in Madagascar (2025): Key Government Sites, Policies, Step-by-Step Procedures and Precautions

This practical guide summarizes the principal government agencies and online portals foreign companies will use when launching or operating in Madagascar in 2025. It covers company registration, tax registration and filing, labor rules and social security, visa and work-permit procedures, plus recent policy interpretations and actionable steps to keep operations compliant.

Quick Reference: Government Departments and Official Portals

Note: URLs and organization names can change. Always verify links through the central government portal and consult local counsel for current addresses.

Key 2025 Policy Highlights and Interpretations

• Digital registration push: Madagascar continued expanding online one‑stop registration services in 2025, reducing the number of in‑person steps. Interpretation: foreign investors can often pre-fill and submit many documents electronically, but notarized originals are still frequently required at later stages.
• Tax compliance tightening: Authorities emphasize electronic VAT and withholding tax reporting. Transfer pricing documentation is more frequently requested during audits. Interpretation: companies should maintain contemporaneous documentation and use local tax advisors to set withholding procedures.
• Investment incentives: Updated investment codes in 2024–25 expanded sectoral incentives (agribusiness, renewables, digital). Interpretation: firms meeting qualifying criteria may obtain tax holidays or customs exemptions, but must register incentives with the Investment Promotion Agency.
• Labor and social contributions: Enforcement of mandatory registration with CNaPS increased; inspections have focused on correct payroll declarations. Interpretation: underdeclaring wages or failing to register staff can trigger fines and back payments.
• Visa improvements: The state broadened e‑visa coverage for certain nationalities and simplified short‑term work authorizations. Interpretation: the e‑visa speeds initial entry, but a separate work permit or residency permit is generally needed before commencing employment.
• Beneficial ownership transparency: Authorities moved toward stricter disclosure of ultimate beneficial owners. Interpretation: prepare notarized ownership records and updates when corporate structure changes.

Step-by-Step: Setting Up and Operating (Practical Procedures)

1. Company Registration (Typical process)

1. Reserve a company name via the commercial registry or one‑stop portal.
2. Prepare founding documents (articles of association), notarize required signatures in Madagascar or at a Malagasy consulate.
3. Submit incorporation package to the business formalities centre (CFE) or local commercial registry: articles, ID copies, proof of address, shareholder details, and initial capital proof where applicable.
4. Obtain registration certificates: trade register entry, company identification number (ninea or equivalent), and certificate of incorporation.
5. Open a local bank account; deposit required capital if applicable and obtain bank confirmation for registration closure.

2. Tax Registration and Filing

1. Register for corporate tax, VAT (if applicable), and obtain a tax identification number at the DGI or via the online tax portal.
2. Register as a VAT taxpayer if revenue exceeds the statutory threshold or if engaging in taxable supplies.
3. Set up monthly/quarterly VAT returns and pay withholding taxes (employees and certain supplier payments) as required.
4. Keep accurate accounting records in the local required language and submit annual corporate income tax returns and audited accounts where applicable.

3. Hiring Staff — Labor Compliance and Social Security

1. Draft employment contracts in accordance with local labor law (confirm language and mandatory clauses).
2. Register employees with CNaPS for social security contributions and with any mandatory health or pension schemes.
3. Withhold payroll taxes and social contributions monthly and remit to the authorities by the deadlines.
4. Comply with working-hour rules, paid leave entitlements, and legal termination procedures to avoid disputes.

4. Visas and Work Permits

1. Determine whether incoming expatriates need an e‑visa for entry and a separate work permit to work legally.
2. Apply for the work authorization through immigration or the labor ministry as required; secure employer sponsorship letters and contract copies.
3. Complete medical or police-clearance requirements if requested.
4. Renew permits in advance of expiry to avoid interruptions.

5. Imports, Customs and Logistics

1. Register as an importer with customs and appoint a licensed customs broker for clearance.
2. Declare goods accurately, classify tariff codes and prepare supporting documents (invoice, packing list, certificate of origin).
3. Pay duties and VAT on imports timely; seek bonded warehouse or temporary admission when applicable.

Notes (Precautions) and Practical Tips

• Local representation: Appoint a local agent or legal representative to expedite communications with government offices.
• Language and translations: Many official forms and contracts are in French or Malagasy—use certified translations for key documents.
• Notarization and authentication: Expect notarization or legalization of some foreign documents (apostille may not be substituted for local requirements).
• Timelines and deadlines: Deadlines for tax filings, social contributions, and permit renewals are strictly enforced; set reminders and use electronic filing when available.
• Banking KYC: Opening business bank accounts involves detailed KYC; prepare corporate documents, beneficial owner IDs and proof of activity.
• Local contracts: Draft employment and commercial contracts under local law, specifying dispute resolution and jurisdiction clauses.
• Incentive compliance: If claiming tax incentives, maintain separate accounting for projects and file required reports to preserve benefits.
• Customs pitfalls: Misclassification or inaccurate invoices often lead to customs delays—work with a trusted customs broker.

Example Cases and Lessons

• Case A — Manufacturing investor: A food-processing investor qualified for a customs exemption under an investment incentive by registering with API and signing a local development agreement. Lesson: Early engagement with API and clear project timelines are essential for incentive approval.
• Case B — Services firm: A foreign services company entered Madagascar using short‑term e‑visas for preliminary business visits but had to obtain work permits before staff performed billable services. Lesson: e‑visas facilitate entry but do not replace work authorizations.
• Case C — Import shipment delay: An importer without proper pre‑registration for VAT had goods held by customs until tax registration was completed. Lesson: tax registration before first import speeds clearance and avoids storage fines.

Where to Get Help

For complex cases, consider engaging local legal, tax and customs experts. For offshore human resources and expatriate compliance support, SailGlobal provides services to help foreign employers manage visas, payroll and local onboarding in African markets.

Final reminder: rules and portals evolve. Always verify current procedures on official government pages and consult qualified local advisors before acting.