Investing
in Madagascar
A new institutional
and regulatory environment favours the entrance of foreign investors in Madagascar.
Investment
Regulations
In
conformity with the provisions of the IMF Article VIII, the law bearing abrogation
of the law related to the Investments Code and fixing the general guarantees of
investments in Madagascar was promulgated in August 1996.
This law provides
that, from now onwards, any individual or legal entity can, within the respect
of the legislation and regulation in force, freely invest on the national territory
without approval conditions or investment authorization.
Thus, foreign
investors no more need to ask for an authorization of direct investment, whether
for the purchase, the creation or the extension of business, of branches of any
personal enterprise or for the participation in the capital of a Malagasy company
at more than 20 %
Besides, such an authorization is no longer necessary
for an investment constitution by means of transfer of participation in the capital
of a Malagasy company that is carried out between individual or legal entities
having their usual residence or their registered office abroad.
For the
export free zone enterprises and the export tax free enterprises, the approval
order equals Authorization of Direct Investment.
Establishment
Form
Foreign companies which intend to permanently
stay in Madagascar generally resort to company creation in association with local
partners who well know the business milieus and the administration wheels.
Company Types
Any company desirous of carrying
on an economic, commercial or industrial activity must do it in the framework
of a Malagasy corporate company whose registered office as well as management
and accountancy systems are established in Madagascar.
The Malagasy corporate
law is akin to the French one. Public Companies and Limited Liability Companies
are the two most currently used types.
The companies must subscribe to
the following conditions and formalities :
a) Limited Liability Companies
-
Minimum Capital of MGF 500,000, at least two joint holders and constitutive general
assembly
- Registration of definite statues at the Clerk's office in the
Commercial Court
- Registration at the Commerce Register
- Fiscal
registration at the Pilot Fiscal Centre of Enterprises
- Statement taxation
authorities (professional tax, tax on profits, VAT, tax on transactions, Excise
Duty)
- Statistical Registration
- Constitutive Statement at the
Companies Office and Advertisement required by law.
- Adherence to the
Social Contingency National Office (CNAPS) and to inter- enterprise sanitary organisations.
b)
Public Companies
-
Minimum Capital of MGF 500,000 and at least 7 shareholders
Public Companies
subscribe to the same obligations as Limited Liability Companies.
|
