Madagascar
Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in Madagascar.
Foreign Ownership Eligibility
Madagascar welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership permitted in most sectors
- Legal system: Civil Law (French tradition, OHADA-compatible)
- Primary registration authority: Economic Development Board of Madagascar (EDBM)
- Registry website: https://edbm.mg
- Tax authority: Direction Générale des Impôts (DGI)
- Corporate income tax (CIT): 20% — Source: CIT: 20% standard rate (DGI Madagascar). VAT: 20% (Wikipedia shows N/A - EDBM co
- VAT / sales tax: 20%
- Estimated formation timeline: 10–20 days — Via EDBM one-stop shop. Source: EDBM Madagascar (edbm.mg)
- Annual compliance and renewal obligations apply
Ownership
100% Foreign OK
Formation
100% Remote
Tax at a glance
Madagascar Tax Overview
20%
Corporate Income Tax (CIT)
CIT: 20% standard rate (DGI Madagascar). VAT: 20% (Wikipedia shows N/A - EDBM confirms 20%).
20%
VAT / Sales Tax
CIT: 20% standard rate (DGI Madagascar). VAT: 20% (Wikipedia shows N/A - EDBM confirms 20%).
Challenging (World Bank EODB 2020 rank: 161)
Ease of Doing Business
World Bank Doing Business 2020 (archived). New B-READY 2024 rankings available at worldbank.org/project/business-ready
10–20 days
Estimated Formation Timeline
Via EDBM one-stop shop. Source: EDBM Madagascar (edbm.mg)
Pros & cons
Advantages & Considerations
Key Advantages
100% foreign ownership permitted in most sectors
Legal framework: Civil Law (French tradition, OHADA-compatible)
Primary registry: Economic Development Board of Madagascar (EDBM)
Tax rate: 20% CIT (competitive regional rate)
Incorporated company has access to Madagascar market
Considerations
Local professional guidance recommended for regulatory compliance
Banking KYC requirements can be extensive — allow time for account opening
Professional services market may be limited compared to major financial centres
Verify sector-specific restrictions before investing
Currency risk: MGA fluctuations may affect USD-denominated investments
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Name reservation
Prepare incorporation documents
Submit registration application
Tax registration
Open corporate bank account
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Government fees change frequently. Always verify current fee schedule at https://edbm.mg before committing. Professional service fees vary significantly by provider.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Madagascar setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? YES.
Banking options for non-resident founders in Madagascar. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| BFV-Société Générale Madagascar | Traditional bank | Low (Visit Required) | 2–6 weeks depending on bank KYC requirements and document completeness • Verify with each bank — fees vary • Bank-specific requirements — verify before opening • Certificate of incorporation, shareholder and director IDs (passports), business plan, registered address proof, KYC forms • SWIFT international transfers, local bank transfers, mobile money where available |
| Bank of Africa Madagascar (BOA) | Traditional bank | Low (Visit Required) | 2–6 weeks depending on bank KYC requirements and document completeness • Verify with each bank — fees vary • Bank-specific requirements — verify before opening • Certificate of incorporation, shareholder and director IDs (passports), business plan, registered address proof, KYC forms • SWIFT international transfers, local bank transfers, mobile money where available |
| BNI Madagascar | Traditional bank | Low (Visit Required) | 2–6 weeks depending on bank KYC requirements and document completeness • Verify with each bank — fees vary • Bank-specific requirements — verify before opening • Certificate of incorporation, shareholder and director IDs (passports), business plan, registered address proof, KYC forms • SWIFT international transfers, local bank transfers, mobile money where available |
| Société Générale Madagascar | Traditional bank | Low (Visit Required) | 2–6 weeks depending on bank KYC requirements and document completeness • Verify with each bank — fees vary • Bank-specific requirements — verify before opening • Certificate of incorporation, shareholder and director IDs (passports), business plan, registered address proof, KYC forms • SWIFT international transfers, local bank transfers, mobile money where available |
| International fintech platforms (Wise | Fintech | High (Remote) | 2–6 weeks depending on bank KYC requirements and document completeness • Verify with each bank — fees vary • Bank-specific requirements — verify before opening • Certificate of incorporation, shareholder and director IDs (passports), business plan, registered address proof, KYC forms • SWIFT international transfers, local bank transfers, mobile money where available |
| PayPal | Fintech | High (Remote) | 2–6 weeks depending on bank KYC requirements and document completeness • Verify with each bank — fees vary • Bank-specific requirements — verify before opening • Certificate of incorporation, shareholder and director IDs (passports), business plan, registered address proof, KYC forms • SWIFT international transfers, local bank transfers, mobile money where available |
| Stripe) may have limited availability — verify per provider | Fintech | High (Remote) | 2–6 weeks depending on bank KYC requirements and document completeness • Verify with each bank — fees vary • Bank-specific requirements — verify before opening • Certificate of incorporation, shareholder and director IDs (passports), business plan, registered address proof, KYC forms • SWIFT international transfers, local bank transfers, mobile money where available |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Annual company filing | Ongoing | File annual returns with Economic Development Board of Madagascar (EDBM) to maintain good standing. |
Corporate income tax return | Ongoing | Submit annual CIT return to Direction Générale des Impôts (DGI). CIT rate: 20%. |
VAT filing | Ongoing | VAT-registered businesses must file periodically. Rate: 20%. Verify threshold with Direction Générale des Impôts (DGI). |
Accounting records | Ongoing | Maintain statutory books per Civil Law (French tradition, OHADA-compatible) requirements. |
Beneficial ownership disclosure | Ongoing | Verify current UBO/beneficial ownership disclosure requirements in Madagascar. |
Frequently Asked
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