The Republic of Madagascar is an island country in the Indian Ocean, off the coast of East Africa. The official languages in Madagascar are Malagasy and French and the currency used is Malagasy ariary. Agriculture is the most developed sector, which employs the majority of the population. Textile, food, and mining industries are also highly popular. The island is rich in natural resources and has diverse wildlife. Economic growth attracts more foreign investors than ever. Most people choose to start their business as a sole proprietorship, mainly because of its simple form.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Sole proprietorship in Madagascar
A sole proprietorship (Entreprise Individuelle) in Madagascar is a business run by an individual. The liability is unlimited, which means that the owner is liable for all their assets and debts. Conducting the sole proprietorship is easier than other business forms, such as Limited Liability Companies (LLCs), as there is only one decision-maker, and the actions can be taken instantly. The proprietorship is also more flexible to the changing environment, unlike large companies.
The registration procedure in Madagascar takes a few steps, but don’t worry- we got your back. Follow the steps below to establish your sole proprietorship with ease.
The sole proprietorship registration process in Madagascar
Before doing any business activity, obtaining a NIFONLINE certificate is mandatory. To register, you should gather the following documents:
- Copy of an identification document (ID card)
- Statistical card (obtained from INSTAT)
- CIPENS - Professional Identity Card for Non-salaried Foreigners (obtained at the Ministry of Industry, Trade and Handicrafts)
- Residence certificate (original)
- Document justifying the address of the office (for example, invoice from JIRAMA, a state-owned electric utility and water services company)
- Location plan approved by the Fokontany chief
You should go to the Tax Center (see locations here), and there you will fill in the declaration of activity and pay the deposit of IR (Income Tax) or IS (Synthetic Tax). Next, visit a local INSTAT office and present the deposit payment slip, so you can obtain the Statistical card. You will be required to fill the form A1.
You can now apply for the Taxpayer Identification Number (NIF) via NIFONLINE and you will be issued one. After obtaining the NIF, your business is ready to start operating.