Starting a Business in


Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Madagascar. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Madagascar to 189 other economies.

  • No. Procedure Time to Complete Associated Costs

    Obtain a provisional fiscal identification number, verify the necessary forms for registration at the front desk and obtain the value to be paid to the tax authority

    Agency: EDBM

    Upon arrival at the one stop shop, the entrepreneur needs to stop at the front office to obtain a provisional fiscal identification number, for verification of the documents to be submitted for registration and to obtain the amount to the paid to the tax authority.

    After the front office provides a provisional fiscal identification number to the applicant, they verify whether the forms were correctly filled and no information is missing (these forms are available online and the entrepreneurs either print them at home or obtain them at the registry).

    1 day no charge

    Obtain a nominal check at any commercial bank

    Agency: Bank

    Once the tax authority issues the carnet with the value, the entrepreneur goes to any commercial bank and obtains a nominal check with the amount owed.

    The cost is typically 0.5% of share capital. The provisional income tax is around 320,000 and the bank usually charge 10,000 for the issuing of the check.

    1 day see comments

    Deposit registered statutes, apply for license (carte professionnelle), obtain a final fiscal identification number, and obtain statistical identifications

    Agency: EDBM

    Once the entrepreneur has the receipt confirming payment to the tax authority, she/he goes back to the front office to lodge the application for registration and payment of administrative fees to EDBM

    Fee schedule:
    • Commercial registration fee: MGA 16,000
    • Deed registration costs: MGA 2,000
    • Institut National de la Statistique Malgache (INSTAT) registration costs: MGA 40,000

    4 days see comments

    File a notice of constitution to be published in a French newspaper

    Agency: EDBM or French Newspaper

    Entrepreneurs must publish a legal notice of constitution in a French newspaper.

    The publication can be requested at the EDBM or at a local French newspaper. The cost varies depending on the size of the ad. If contracted through EDBM, it will cost approximately MGA 18,000 as the ad will be shared with other companies. However, most companies prefer to do it directly at the newspaper so they can choose the size of publication that best suits them. In this case, it will cost approximately MGA 40,000.

    The entrepreneur must provide the information from the tax ID, the statistics ID and the company registration number.

    2 days MGA 18,000

    Obtain the K-Bis

    Agency: EDBM

    The K-Bis is the document that compiles all the relevant information regarding the company. It shows the tax ID, the statistics ID, the registration number and the date of the newspaper publication.

    1 day MGA 2,000

    Register employees with Social Security

    Agency: EDBM

    The company must register its employees with the National Social Security Fund (Caisse Nationale de Prevoyance Sociale), and file two copies of an application form (bulletin d'adhesion nouveau membre) along with a list of names of all employees and their identity cards to enroll for health insurance.

    1 day no charge

    Register employees for health insurance

    Agency: OSTIE

    Registration with an insurance scheme is mandatory.

    OSTIE is the public insurance scheme and registration is free of charge. However, companies can choose to offer the services of a private insurance scheme. In case they chose to do so, the additional cost is not deductible from taxes.

    1 day no charge