Doing Business with Madagascar

Exporting to Madagascar involves several steps. Here’s a comprehensive guide:

1. Research Market Requirements

   • Understand Madagascar’s import regulations and standards for your product.

2. Identify Local Partners

   • Establish relationships with local distributors or agents in Madagascar.

3. Prepare Export Documentation

   • Include commercial invoices, packing lists, and certificates of origin.
   • Ensure compliance with labeling and packaging requirements.

4. Arrange Logistics and Shipping

   • Choose a reliable shipping company. Ensure accurate completion of shipping documents, such as bills of lading.

5. Customs Declaration

   • Work with a customs broker to facilitate the clearance process.
   • Submit all required documentation to Madagascar customs authorities.

6. Understand Duties and Taxes

   • Familiarize yourself with any applicable import duties and taxes in Madagascar.

7. Distribution and Sales

   • Establish distribution channels within Madagascar.
   • Consider partnerships with local businesses for effective market penetration.

Key Contacts

• Madagascar Customs
  • Website: Madagascar Customs
• Chamber of Commerce and Industry of Antananarivo
  • Website: CCIA

Importing goods into Madagascar involves several steps. Here’s a comprehensive guide:

1. Register as an Importer

   • Ensure your business is registered in Madagascar and compliant with local regulations.

2. Classify Your Goods

   • Determine the correct Harmonized System (HS) code for your products to identify applicable duties and taxes.

3. Check Import Regulations

   • Ensure compliance with specific standards, and obtain necessary permits or certifications for your goods.

4. Find a Reliable Supplier

   • Establish a relationship with a trustworthy overseas supplier.

5. Arrange Shipping and Logistics

   • Choose a reliable freight forwarder.
   • Ensure all shipping documents are in order, including the bill of lading and commercial invoice.

6. Customs Declaration

   • Submit all required documentation to Madagascar Customs.
   • Work with a customs broker if necessary to facilitate the process.

7. Pay Duties and Taxes

   • Calculate and pay applicable import duties and taxes through the customs system.

8. Receive Your Goods

   • Arrange for the transportation of goods from the port to your warehouse or distribution center.

Key Contacts

• Madagascar Customs
  • Website: Madagascar Customs
• Chamber of Commerce and Industry of Antananarivo
  • Website: CCIA

Incorporating a company in Madagascar involves several steps. Here’s a comprehensive guide:

1. Choose a Company Type

   • Decide on the legal structure (e.g., SARL – Société à Responsabilité Limitée).

2. Reserve a Company Name

   • Check and reserve the desired company name with the Economic Development Board of Madagascar (EDBM).

3. Prepare Incorporation Documents

   • Draft the Articles of Association and prepare other necessary documents.

4. Open a Bank Account

   • Deposit the required share capital in a local bank account.

5. Submit Registration Application

   • File the application with EDBM, including all required documents.

6. Register for Taxes

   • Obtain a tax identification number from the tax authorities.

7. Obtain Business Licenses

   • Apply for any necessary business licenses specific to your industry.

Costs

• Registration Fees: Vary depending on company type and capital.
• Additional Costs: Notary fees and capital deposit requirements.

Key Contacts

• Economic Development Board of Madagascar (EDBM)
  • Website: EDBM
• Chamber of Commerce and Industry of Antananarivo
  • Website: CCIA

Setting up a manufacturing plant in Madagascar involves several steps. Here’s a comprehensive guide:

1. Conduct Market Research

   • Analyze demand, competition, and location advantages in Madagascar.

2. Choose a Suitable Location

   • Consider available infrastructure and proximity to resources.
   • Check zoning regulations and obtain necessary permits from local authorities.
3. Incorporate Your Company
   • Register your business with the Economic Development Board of Madagascar (EDBM).

4. Obtain Necessary Permits and Licenses

   • Apply for industrial and environmental permits from relevant authorities.

5. Secure Financing

   • Explore options through banks or investment partners.

6. Design and Construct the Facility

   • Hire architects and contractors for design and construction.
   • Ensure compliance with local building codes and safety regulations.

7. Install Equipment and Machinery

   • Purchase and set up machinery necessary for production.
   • Ensure safety and operational standards are met.

8. Hire and Train Workforce

   • Recruit skilled labor and provide necessary training.

9. Set Up Supply Chain and Distribution

   • Establish relationships with suppliers and distributors.

10. Begin Operations

    • Start production and monitor operations for efficiency and quality control.

Key Contacts

• Economic Development Board of Madagascar (EDBM)
  • Website: EDBM
• Chamber of Commerce and Industry of Antananarivo
  • Website: CCIA

Registering a trademark in Madagascar involves several steps. Here’s a comprehensive guide:

1. Conduct a Trademark Search

   • Ensure your trademark is unique and not already registered.

2. Prepare Your Application

   • Include the trademark design, classification of goods/services, and applicant details.

3. Submit the Application

   • File your application with the Malagasy Industrial Property Office (OMAPI).

4. Pay the Application Fee

   • Confirm the current fee structure with OMAPI and make the necessary payment.

5. Examination Process

   • The application undergoes examination for compliance and potential conflicts.

6. Publication and Opposition

   • If approved, the trademark is published for opposition. A period is given for third parties to oppose.

7. Registration and Certification

   • If no oppositions arise, the trademark is registered, and you receive a Certificate of Registration.

8. Maintain and Renew the Trademark

   • Trademarks need periodic renewal to maintain protection.

Costs

• Application Fee: Check with OMAPI for the latest fees.
• Additional Costs: May include legal and consultancy fees.

Key Contacts

• Malagasy Industrial Property Office (OMAPI)
  • Website: OMAPI

Resolving commercial disputes in Madagascar involves several steps. Here’s a guide on the process:

1. Attempt Negotiation

   • Start by negotiating directly with the other party to reach an amicable solution.

2. Mediation

   • Engage a mediator to facilitate discussions. This is often quicker and less formal than court proceedings.

3. Arbitration

   • Consider arbitration for a private and binding resolution. Both parties must agree to this method.

4. Seek Legal Advice

   • Consult with a lawyer specializing in commercial law for guidance on your case.

5. File a Lawsuit

   • If other methods fail, file a lawsuit with the Commercial Court in Madagascar. Prepare necessary documentation and evidence.

6. Court Proceedings

   • Attend hearings and present your case. Follow legal procedures as guided by your lawyer.

7. Judgment and Enforcement

   • If a judgment is made, ensure its enforcement through legal channels.

Costs

• Mediation and Arbitration Fees: Vary depending on the service provider.
• Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
• Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

• Chamber of Commerce and Industry of Antananarivo
  • Website: CCIA
• Ministry of Justice
  • Website: Ministry of Justice

When considering doing business in Madagascar, various social, cultural, political, and economic factors must be taken into account.

Social and Cultural Factors

• Language: Malagasy and French are official languages; French is commonly used in business.
• Business Etiquette: Relationships and trust are crucial. Meetings may start with informal conversation.

Political Factors

• Government Structure: Semi-presidential republic with varying political stability.
• Regulations: Business regulations can be complex; local expertise is beneficial.

Economic Factors

• Economic Stability: Developing economy with opportunities in agriculture, mining, and tourism.
• Corporate Tax Rate: 20%, competitive for the region.

Foreign Exchange

• Currency: Malagasy Ariary (MGA).
• Exchange Rate: Subject to fluctuations; managing currency risk is important.

Rule of Law

• Legal Framework: Developing legal system; enforcement of contracts can be challenging.
• Judiciary: Efforts are ongoing to improve efficiency and transparency.

Business Environment

• Infrastructure: Developing infrastructure; transportation and logistics can be challenging.
• Workforce: Young and growing workforce, though skills development is needed.

Key Resources

• Economic Development Board of Madagascar (EDBM)
  • Website: EDBM
• Chamber of Commerce and Industry of Antananarivo
  • Website: CCIA