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LLC Free Zone Company PLC Branch Rep Office
Local Name SARL EPZ SA Succursale Bureau de Représentation
Company Setup Time 10 days 10 days 10 days 15 days 15 days
Bank Account Opening 10 days 10 days 10 days 10 days 10 days
Government Grants Available Yes Yes Yes No No
Government Contracts Bidding Yes Yes Yes No No
Legal Liability Yes Yes Yes No No
Client Required to Travel No No No No No
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Corporate Structure Explained

Madagascar Limited Liability Company (Société à Responsabilité Limité – SARL)

  • Locally known as SARL, The Madagascar limited liability company must hire a minimum of one director and one shareholder who may be a local or international resident. A minimum paid-up capital of USD 1 is required for registration.
  • The LLC must appoint a local resident representative and keep records of the financial statements in French at the Madagascar registered office. The limited liability company must hire an auditor and submit its yearly audited financial statements.

Madagascar Public Limited Company (Société Anonyme – SA)

  • The Madagascar Public Limited Company (PLC), locally known as an SA, requires a minimum incorporation capital of US$ 800. At least one shareholder and one director who can be of any nationality must be appointed.
  • Like an LLC, the PLCs in Madagascar must appoint a local resident agent and the account books must be kept in French at the Madagascar office listed. Annual financial statements must be made and an annual audited must be submitted. For this purpose, a PLC in Madagascar must appoint an auditor.

Madagascar Free Zone Company (EPZ Company)

  • Once approved by the EDBM, a Madagascar Free Zone Company is considered incorporated. These companies must export 95 percent of their production in order to qualify for EPC incentives. These incentives are a fifteen-year tax exemption. Value Added Tax exemption on custom tariffs and raw material imports. Exemption from incorporation tax. Zero tax on exports. Tax on income not exceeding 30% of the taxable amount. Free access to foreign currency deposits on the company’s foreign currency bank account.

Madagascar Branch (Succursale)

  • The branch of an international holding company may be wholly foreign owned. The primary reason for establishing a branch in Madagascar is to ensure proper representation of its holding company and provide specific information on behalf of foreign holding company. The holding company must define the scope of the activities of its branch in Madagascar. Similarly, the branch must have a registered address and it must have a local resident representative who will receive notices on behalf of the holding company.

Madagascar Representative Office (Bureau de Représentation)

The Madagascar representative office is fully owned by the holding company. Representative offices are not allowed to perform any income earning operations in the country. Office expenses must be paid by inward transfers of foreign currency. The representative office may therefore be involved in market research, promotion and marketing of the business of the holding company. Representative offices must appoint a representative who must be locally resident in Madagascar.

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