In Madagascar, foreigners can own 100% of a company in most sectors. All companies register at the one-stop shop of the Economic Development Board of Madagascar (EDBM), or online through the Orinasa platform. According to China’s Ministry of Commerce (MOFCOM), once the file is complete you receive the filed statutes, trade register entry, statistics card and tax number in about four working days. A limited liability company needs only Ar 1 million (about US$225) in minimum capital.
The hard part comes later: many taxes, strict audits, loose and unpredictable enforcement, a weakening currency, and in September 2025 a Chinese-run mall in the capital was looted. Below we cover company forms, restrictions, registration steps, tax, free zones, banking and foreign exchange, staffing, chambers of commerce and common problems.
Company forms and minimum capital
Figures from the 2025 edition of the MOFCOM country guide:
| Form | Notes | Minimum capital |
|---|---|---|
| SARL (limited liability company) | Two or more shareholders | Ar 2 million |
| SARLU (single-member SARL) | One individual shareholder | Ar 1 million |
| SA (public limited company) | Two or more shareholders | Ar 10 million |
| SAU (single-member SA) | One shareholder | Ar 2 million |
| Branch (succursale) | Applied for by the parent company or its agent | — |
| Representative office | Applied for by the parent company or its agent | — |
Chinese traders and shopkeepers usually use an SARL or SARLU. EDBM’s website provides model statutes for each form. For the cities and trades where Chinese businesses cluster, see the Chinese community in Madagascar.
Foreign ownership and restrictions
- Ownership: in most cases there is no strict limit on foreign shareholding, up to 100%.
- Sectors needing approval: banking, insurance, mining, oil, telecoms, healthcare, pharmaceuticals and related activities. Both the activity and the shareholding are approved case by case. A commercial bank, for example, needs at least Ar 3 billion in capital.
- Sector laws: mining follows the Mining Code; handicrafts, fisheries and aquaculture, and tourism each have their own laws.
- Land: foreigners and foreign-owned companies cannot buy land directly, but can lease it from Malagasy citizens or institutions for up to 99 years, renewable.
- Rosewood and ebony: logging and export are banned and prosecuted as crimes.
- Gold: in August 2026 the Chinese embassy warned that Madagascar has suspended gold exploration and mining permits since 2010, and small-scale artisanal permits go only to Malagasy citizens. Any gold mining without a permit is illegal, and several Chinese citizens have recently been arrested on suspicion of illegal gold mining and smuggling.
Registration steps
- Prepare documents: statutes, ID and proof of address, proof of registered office (lease), the owner’s property title, power of attorney, a statement on directors, and approvals for regulated sectors. MOFCOM says foreign applicants must provide a passport copy with a long-stay visa, so ask EDBM in advance about the order of company registration and the investor visa.
- File: at the EDBM one-stop shop or online at orinasa.edbm.mg. An SA also needs general meeting and board minutes, subscription and payment statements and a blocked-funds certificate. Branches and representative offices need the parent’s statutes, a board resolution and French translations of the parent’s registration documents.
- Collect documents: about four working days after acceptance, EDBM issues the filed statutes, the trade register (RCS) certificate, the statistics card (Carte Statistique) and code, and the tax number (NIF).
- Open a bank account: right after registration, open a company account at a local bank (see below).
- Social security: register with the social security and health insurance bodies within 15 days of registration.
- Work permits and visas: for Chinese staff, see Madagascar visas and work permits.
- Report to the Economic and Commercial Office: under China’s outbound investment rules, Chinese companies should register with the embassy’s Economic and Commercial Office after setting up.
Main taxes
| Tax | Rate / threshold (MOFCOM guide, 2025) |
|---|---|
| Income tax (IR) | Businesses and individuals with annual turnover (excl. tax) of Ar 200 million or more: standard rate 20%; free-zone and major mining companies 10% during the incentive period; unregistered importers, exporters and suppliers 5% |
| Synthetic tax (Impôt synthétique) | Businesses with turnover under Ar 200 million: 5% of the previous year’s turnover |
| VAT (TVA) | Required at turnover of Ar 100 million or more; rate 20% |
| Salary income tax (IRSA) | Progressive since 2021: 0% up to Ar 350,000 a month, 5% to 400,000, 10% to 500,000, 15% to 600,000, 20% above; minimum Ar 2,000 a month |
| Tax on investment income (IRCM) | 20% |
| Social security and health | Social security 14% of payroll (1% paid by the employee), health 6% (1% by the employee); in practice employers usually pay both |
| Excise | Beer, alcohol, tobacco, mobile services, etc.: 7%–325% |
| Import duty on raw materials and equipment | Limited to 5%–10% under the customs tariff |
The tax year is either January–December or July–June. Late payment adds 0.5%. Since 2019 returns can be filed online through e-Hetra. VAT is usually filed monthly, income tax is prepaid quarterly, and the annual return comes with the balance sheet and income statement. The tax office audits every three years and also makes unannounced checks, so keep your books ready.
Free zones and free-zone companies
Madagascar set up export processing zones in 1989. The current law is the January 2008 Law on Free Zones and Free-Zone Companies (Law No. 2007-037). Companies apply to EDBM and, once approved, receive a free-zone certificate. The parks are mainly in Tanjombato, south of the capital, and Ivato, near the airport. As of September 2020 there were 253 free-zone companies, including Chinese cashmere maker King Deer (Lu Wang), mostly in textiles, food and wood processing. The free-zone business association GEFP represents them in talks with the government. No Chinese overseas economic cooperation zone or industrial park has yet been set up in Madagascar.
Bank accounts and foreign exchange
To open an account you usually need copies of the company statutes, trade register entry, tax number and statistics card, plus the manager’s ID and proof of address. There are 11 commercial banks, mostly foreign-owned, including BMOI, BNI Madagascar, MCB Madagascar, SBM Madagascar, Société Générale Madagasikara, BOA-Madagascar, AccèsBanque and BGFIBank. Since 2019 AccèsBanque has issued UnionPay debit cards.
- RMB cannot be settled directly against the ariary; trade is mostly in US dollars or euros.
- Companies may hold foreign currency accounts for trade settlement, and flows must be declared. Export proceeds must be repatriated after shipment: within 190 days for free-zone companies and 90 days for others.
- The ariary lost 8.14% against the dollar in 2023 and 2.16% in 2024. Include exchange-rate clauses in long contracts.
Staffing
Since March 2024 the minimum hiring wage has been Ar 262,700 a month outside agriculture and Ar 266,500 in agriculture. Labour rules described by MOFCOM include: probation of no more than six months; fixed-term contracts of no more than two years; staff delegates required above 11 employees and a works committee above 50; collective layoffs need prior consultation with staff representatives and labour inspectorate approval. A new Labour Code (Law No. 2024-014) was adopted in August 2024, so check details with a lawyer. The cap on foreign staff and the work permit process are on our visa page.
Chambers of commerce and advisers
| Organisation | Details and contact |
|---|---|
| Economic and Commercial Office, Chinese Embassy | Nanisana Ambatobe, Antananarivo; +261-20-2245228; mg@mofcom.gov.cn; mg.mofcom.gov.cn |
| Association of Chinese Enterprises in Madagascar | Founded 2004, registered locally 2008, 40+ member companies, mainly state-owned and large Chinese firms; www.aecmada.org |
| Madagascar Chinese Merchants General Chamber (华商总会) | Chamber for Chinese traders that can help with business problems; www.madhszh.com |
| Economic Development Board of Madagascar (EDBM) | Investment authority and one-stop shop; +261-20-2267040; edbm@edbm.mg; weekdays 9:00–17:00 |
| Madagascar Bar Association | Palais de Justice, 3 Rue Jules Ranaivo, Antananarivo; +261-20-2235071 |
For business conditions in neighbouring island states, see our Indian Ocean guide.
Common problems and lessons
- Don’t count on incentives being honoured: tax breaks negotiated for large projects often fall through because ministries don’t coordinate. Leave a margin in your costings.
- Register and pay tax: foreign businesses trading or investing in Madagascar must register and pay tax locally. Audits of Chinese firms have increased, so use a local accounting firm.
- Many laws, loose enforcement: policies can change with each government. After the military took power in October 2025, watch for policy changes from the new authorities.
- Riot risk: during the protests that began on 25 September 2025, a Chinese-run mall was looted and burned, with losses a Chinese trader estimated at RMB 50–60 million. MOFCOM recommends political risk insurance from China Export & Credit Insurance Corporation (Sinosure) and proper shop security. See our Madagascar safety guide.
- Strict export checks: lemurs, chameleons, tortoises, rosewood, palisander, orchids and other protected species may not be taken or shipped out.
For an overview of the country and daily life, see our Madagascar guide.
References
- Country Guide for Foreign Investment and Cooperation: Madagascar, 2025 edition (MOFCOM / Chinese Embassy Economic and Commercial Office, 2025)
- EDBM Orinasa online company registration platform (EDBM, 2026)
- Work permit information sheet, version 8 (EDBM / Ministry of Labour, 2025)
- Long-stay visa (investor) information sheet, version 14 (EDBM / Ministry of the Interior, 2026)
- Embassy warns Chinese citizens not to take part in illegal gold mining (Chinese Embassy in Madagascar, 2026)
- Embassy spokesperson on illegal gold mining in Madagascar (Chinese Embassy in Madagascar, 2026)
- Madagascar protests: Chinese mall looted, 60 million yuan in losses (The Standard (Hong Kong), 2025)