Legal and Compliance
In Madagascar, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Madagascar legal and compliance requirement to be followed by incorporated entities:
· Limited liability companies must have at least 1 director and 1 shareholder of any nationality. The minimum required capital is $1 only.
· Public limited companies should have at least 1 director and 1 shareholder of any nationality. The minimum required capital is $800.
· Free zone entities in Madagascar must be approved first by the Economic Development Board of Madagascar before they are incorporated.
· Free zone entities must export 95% of its production to enjoy free-zone incentives.
· Representative offices and branches can 100% foreign owned.
· Representative offices are not allowed to perform income generating activities in Madagascar.
YourGlobalPro professionals can assist you in legal and compliance requirements.
HR and Employment Law and Immigration / VISA
Below are some of the important points in relation to HR & employment law in Madagascar:
· Fixed term contracts are prohibited for permanent tasks.
· The maximum length of single fixed term contract including renewals is 2 years.
· Employers must pay a premium of 30% of hourly pay for overtime work
· Paid annual leaves regardless of tenure is 24 days.
· Registration for health insurance of employees is required.
· Foreigners who want to enter Madagascar must obtain a tourist visa or business visa for a stay of fewer than three months.
· Foreigners who want to work in Madagascar must obtain a transformable visa, which is valid for one month. The transformable visa must be changed to a long-stay visa for a foreign worker within one month after he or she enters Madagascar.