Never Lose Your Company Setup Madagascar Again
Invest and Setup a company in Madagascar only for the daring people?
Investing in Madagascar means venturing into a country where investment opportunities are numerous. The Big Island is one of the most popular tourist destinations in the world. Because ? Its richness in biodiversity, its numerous tourist sites, its favorable climate, its cultural richness,… the tourist assets of the “eighth continent” are not lacking. Thus, the country was cited among the 20 best tourist destinations by the 'National Geographic Traveler' at the end of 2017.
But, Madagascar is not only magnificent beaches and diverse landscapes. Many investors around the world choose it for its wealth of natural resources, skilled but cheap labor and fiscal opportunities. The Malagasy government has made many efforts to encourage investors to come to the country. And to facilitate the procedures for foreign and local entrepreneurs in setting up businesses and for other formalities, EDBM was created and has become essential for improving the Malagasy business climate.
In addition, Madagascar also enjoys an ideal geographical location between Africa, Asia, Europe and the rest of the world. It is accessible through its 5 airports and 6 international ports, and its internet connectivity is one of the best in the world. But the island still has other assets to discover.
Discover Madagascar
If you are told 'Madagascar' and you only have in mind the animated film produced by DreamWorks Animation in 2005, you should definitely read on.
Location of Madagascar
The fourth largest island in the world, Madagascar is part of the African continent. It is separated from mainland East Africa by the Mozambique Channel, over a distance of 400 km. The island is located in the southern hemisphere, south of the equator, and is crossed by the Tropic of Capricorn. Bathing in the Indian Ocean, several islands surround it. The Comoros archipelago is located northwest of the big island, 300 km away. 1000 km to the north of the island is the Seychelles, 800 km to the east is Reunion Island, and to the east, 868 km is Mauritius.
History of Madagascar
According to history, the first inhabitants arrived on the Big Island around 2000 BC. These were the Austronesians from the Indonesian archipelago. During the Paleomalgash period, the Ntaolo, the first inhabitants of the island, split into two large groups. The first group, called Vazimba, settled in the forests in the center as well as on the east and south-east coast of the big island. As for the second group named Vezo, it remained on the west coast.
New immigrants arrived from the year 700. These latter are from the Middle East (Arabized Jews, Arabs and Persians), Eastern peoples (Malays, Indians, Javanese, etc.) and Africa, Especially the Bantu. Gradually, the cultures and way of life of the first peoples and those of the newcomers mingled, which could explain the great cultural diversity that there is in Madagascar.
The Neo-Austronesian clans approached and allied with the Vazimba clans and then settled in the northwest, east coast, southeast, west and center of the island. They were called the Hova. After the struggles between the different clans of the Hova located on the central highlands, the ethnic groups and kingdoms of the Merina, Bezanozano, Betsileo, Tsimihety, Sihanaka and Bara were born. These are the neo-Hova.
As for the Antakarana, Menabe and Boina (Sakalava), Mahafaly, Vezo, Antesaka, Antandroy, Antemoro, Antambahoaka, Antanala, Antaifasy and Betsimisaraka ethnic groups and kingdoms, they come from the new Middle Eastern, Eastern and African immigrants. The neo-Vezo were born.
Despite the arrival of the neo-Hova and neo-Vezo, the culture, language, traditions and customs, the art of the ancients and the sacredness practiced by the first immigrants, the Ntaolo, have been preserved.
The first European to have discovered Madagascar on August 10, 1500 is the Portuguese captain Diogo Dias when his boat was to go to India. At that time, he named the island 'Saint Laurent Island'. But the European presence did not really take hold until the 17th century with the slave trade and the introduction of firearms to the island.
At the start of the 19th century, Andrianampoinimerina, a Malagasy monarch whose reign took place between 1787 and 1810, began to unify the various ethnic groups and / or kingdoms of the island. His son Radama I who reigned between 1810 and 1828 took over and continued to consolidate. Thus, in 1817, the kingdom of Madagascar was for the outside world constituted by the kingdoms of merina, bezanozano, betsileo and sihanaka unified.
The opening of the Malagasy kingdom to the world began since the reign of Radama I. It was during his reign that the Latin Malagasy alphabet consisting of 21 letters replaced the Arabic alphabet. And in 1830, under Ranavalona I (1828 - 1861), the Bible was the first work that was written entirely in the Malagasy Latin alphabet.
From 1835, modernization gradually took hold on the island with the production of porcelain, soap, firearms and various metal tools thanks to Jean Laborde. The first modern hospital and a medical school opened in Antananarivo in 1864. In 1866, the first newspapers were published.
In 1885, during the reign of Queen Ranavalona III a treaty was signed between France and Madagascar stipulating that the two countries are allies. But following disagreements relating to this treaty, France invaded the big island in 1895. In 1896, Madagascar became a French colony and Queen Ranavalona III was forcibly exiled in Algiers.
During the time of colonization, schools were francized and the country gradually developed thanks in particular to the construction of railways, hospitals, a medical school and the founding of the Institute. Pastor of Madagascar. In addition, private investments have made it possible to develop the agricultural, industrial and mining sectors.
The first resistance movement against the settlers appeared in 1915 with Vy Vato Sakelika. But it was strongly repressed from the same year. But the war for independence was more violent in 1947 following the outbreak of the insurrection of 1947. But it was not until June 26, 1960 that the country gained its independence and it is Philibert Tsiranana who was the first president after the time of colonization.
Geography of Madagascar
Madagascar covers an area of 587,000 km², with a length of 1,580 km and a width of about 580 km. Its coasts measure 4,828 km. The island's capital is Antananarivo, it is the administrative and economic center of the country. The local currency is Ariary and the languages spoken are Malagasy and French but English is also understood by many people. In 2016, there were approximately 24,890,000 inhabitants in this country.
In the past, the big island was linked to Africa. But because of continental drift, it separated from the mainland 120 million years ago. Mountainous island, it is crossed by a mountain range in the north-south direction with an altitude which varies between 1000 and 1500 meters. 70% of the surface of the big island represents the highlands. They are made up of plateaus with valleys, hills and peaks. Rice cultivation is most important in the highlands.
The north is a volcanic region. This is where Mount Maromokotra is located, the peak of the island which rises to 2,876 m. There are tropical forests, savannas and magnificent white sand beaches. The wettest areas of the island are found in the east, with dense forests rich in fauna and flora. The western part is occupied by alluvial plains. As for the south, the landscape resembles the southern African bush with scrub and dry savannah.
Madagascar climate
The climate is variable in Madagascar. However, there are two main seasons: the rainy season, warmer, from November to April; And a dry, cooler season from May to October. The ideal time to visit the island is the dry season.
The wettest area of the island is the east coast. The highlands are the coolest, and the temperature can drop below 10 ° C from June to August. On the west coast, the dry season lasts about 6 to 8 months each year and the rains are less frequent, and the temperature is ideal most of the year. But the driest part is to the south in which areas more info can be described as desert.
Madagascar tourism activities and tourism investment opportunities
Tourism is one of the main sources of foreign exchange on the island. In 2016, the country registered around 300,000 tourists, the majority of whom are of French nationality. The big island has many tourist attractions. The rate of endemism is very high: of all its flora and fauna, 80% of plant species and about 90% of animal species are found only on the island. For example, six species of baobab are only found in Madagascar, so are the Ravinala, several species of orchids, chameleons and primates.
For sports enthusiasts, the north of the island is ideal for water sports such as windsurfing and kitesurfing. The most beautiful beaches are in Nosy Be, Sainte Marie and Diego Suarez. But Majunga and Fort Dauphin are also popular with tourists.
Besides national parks and beaches, Madagascar is also famous for its cultural diversity. In addition, festivals like Donia and the Whale Festival also make it famous.
Economy of Madagascar
Madagascar is classified as a developing country. Its economy is based on agriculture (rice, cloves, cocoa, vanilla, sugar, coffee and pepper), mining (gold, cobalt, nickel, ilmenite, sapphire) and, the textile industry and tourism. But the tertiary sector is also starting to develop. Foreign investors come from Canada, France, Mauritius and China.
There is no lack of investment opportunities in all sectors: banking, real estate, textile industry, tourism, new technologies, agriculture and all services in general. Added to this, because of the young population, competitive but cheap labor is plentiful. However, the economy is failing to take off for various reasons such as political instability, corruption, increasingly frequent natural disasters and lack of infrastructure.
The real estate market in Madagascar
Investing in Madagascar pays off if you choose the real estate industry. The real estate market is booming on the island, especially in the capital. According to the Knight Frank, a British firm specializing in the management of property assets, sales and rentals, in its study dated 2107, Antananarivo is the most profitable city in Africa in terms of real estate. . Indeed, the capital has a high rate of return of 14% in office property, and a rate of 13% in commercial property. For residential real estate, the rate of return is 12%.
Applicable Taxes in Madagascar
The tax burden in Madagascar is one of the lowest in Africa. In 2017, this rate was 11.6%. The Malagasy General Tax Code is based on Western tax codes.
There are two types of taxes in Madagascar: local taxes and state taxes:
In the state tax category,
Taxes on wage and related income: IRSA (income tax) at the rate of 20%, IR (income tax which concerns all income that is not classified in the IRSA) at the nominal rate of 20% For tranches exceeding 250,000 Ar, IS (synthetic tax) at the rate of 5%, IPVI (Tax on real estate gains) at the rate of 30% and IRCM (tax on income from movable capital)
Indirect taxes: excise duties, various duties and taxes (alcoholic beverages, games of chance, manufactured tobacco)
Direct taxes: TST (transaction tax) and VAT at the rate of 20%
In the local taxes category,
IFT (property taxes on land) at the rate of 1%
IFPB (property taxes on built properties) with a rate of between 5 and 10% of the rental value for properties rented out.
The owners of taxable property must declare each year, before October 15, information on their property (legal situation, area, crops or other operations on the ground). For properties built and leased, the names of the tenants must also be mentioned, as well as those of the people accommodated free of charge.
It is important to know that a resident foreigner who wants to invest in Madagascar can:
Be an employee in a Malagasy company
Create an SA, SARL, SARLU, SCI type company, etc.
Create a sole proprietorship company
Buy business assets
Buy stocks or shares in a company located in Madagascar
Conditions of residence in Madagascar for investors and foreigners
Residents are subject to the same rights and obligations as locals. Only investors, retirees, expatriate workers and students can access the residence and it is essential to be a resident before being able to exercise an activity.
To become a resident in Madagascar and obtain a long-stay visa: you must first acquire an expatriate worker visa or an investor visa.
There are several steps to acquire the residence card. However, if the documents and requests are filed with the EDBM, the procedures will be faster. At the Home Office, the process can take several months.
Only residents can make investments in Madagascar. Thanks to the EDBM, the procedures to acquire the residence card are now faster.
Madagascar is one of the favorite tourist destinations of the French for the charm of the island.
Indeed, there are magnificent landscapes, dream beaches, various places to visit and several activities to do. On the biodiversity side, the country is rich in flora and fauna with several species that cannot be found anywhere else.
Investors will also find various opportunities in Madagascar, in almost all sectors. Real estate is particularly attractive with returns of over 10% per year.
In addition to this, we must not forget the relatively low cost of living, favorable taxation, the possibility of obtaining residence or even long-stay visa, cheap labor cost and the existence of interesting tax treaty.
Who to get in touch with if I want to setup my company in Madagascar ?
Agent In Mada is the ideal partner to support you in your administrative procedures during the creation of your business. Our service begins with advice and ends with tax reporting at the end of your first year of practice.
Do not hesitate to contact us, at any time, to request information or to submit your business creation project in Madagascar:
Call us : +261344600177
Skype : landry.sb
Whatsapp : +261331370201
Wechat : landrymada
Email : agentimada(@)gmail.com