For entrepreneurs and digital nomads considering Madagascar as a base for their next venture, the maze of company formation and ongoing compliance costs can feel daunting. If you’re weary of unpredictable tax regimes and state-imposed fees, you’re not alone. In this guide, we’ll break down the real, data-backed costs of starting and maintaining a standard company in Madagascar in 2025—so you can make informed, strategic decisions and keep more of your hard-earned capital working for you.
Understanding Company Formation Costs in Madagascar (2025)
Setting up a Société à Responsabilité Limitée (SARL)—the most common entity for small and medium businesses—comes with a series of state-mandated expenses. Here’s a transparent breakdown of the average creation costs, all denominated in Malagasy Ariary (MGA):
| Cost Item | Amount (MGA) |
|---|---|
| Minimum capital requirement | 100,000 |
| Registration fee at EDBM | 80,000 |
| Publication in official journal | 40,000 |
| Notary fees (average) | 50,000 |
| Stamp duties & miscellaneous admin fees | 50,000 |
| Total Average Creation Cost | 320,000 |
Pro Tip #1: While the minimum capital is set at 100,000 MGA, many founders opt for the bare minimum to keep initial outlays low. Each fee is a fixed, state-mandated cost—so there’s little room for negotiation, but knowing the breakdown helps you avoid unnecessary extras.
Annual Maintenance Costs: What to Expect in 2025
Once your SARL is up and running, annual compliance and maintenance costs become the next hurdle. Here’s what you’ll need to budget for each year:
| Maintenance Item | Amount (MGA) |
|---|---|
| Annual declaration fees (EDBM) | 20,000 |
| Mandatory accounting services (minimum, small SARL) | 100,000 |
| Tax filing fees | 30,000 |
| Optional: Legal address renewal/admin fees | 20,000 |
| Optional: Additional accounting or audit services (upper range) | 230,000 |
| Annual Total (Range) | 150,000 – 400,000 |
Pro Tip #2: For lean operations, stick to the essentials: annual declaration, basic accounting, and tax filing. Only add extra services if your business model or regulatory environment demands it. This approach keeps your annual costs closer to the 150,000 MGA mark.
Case Example: The Minimalist SARL
Imagine you’re launching a remote consulting firm in Madagascar in 2025. By opting for the minimum capital and only the required services, your first-year outlay would be:
- Creation: 320,000 MGA
- Annual maintenance: 150,000 MGA
That’s a total of 470,000 MGA for your first year—substantially lower than in many other jurisdictions, and with no hidden surprises if you stick to the essentials.
Checklist: How to Optimize Your Company Costs in Madagascar
- Choose the right entity type: SARL is the most cost-effective for most entrepreneurs.
- Minimize initial capital: The law allows for a low minimum—don’t overcapitalize unless necessary.
- Streamline annual services: Only pay for what you need; avoid upsells from service providers.
- Stay informed: Regulations and fees can change. Always check the latest updates from official sources before making decisions.
Key Takeaways for 2025
- Average company creation cost (SARL): 320,000 MGA
- Annual maintenance cost: 150,000 – 400,000 MGA
- Major expenses are state-imposed and largely non-negotiable
- Strategic choices—like minimal capital and lean accounting—can keep your fiscal footprint light
For further details and the latest regulatory updates, consult these official resources: