The commercial real estate sector of Madagascar continues to expand because of its urbanization growth, foreign capital inflow and construction development initiatives. Your interest lies in developing a commercial real estate business.
The law requires anyone performing business operations in Madagascar to perform registration within 30 days after the business start date. Every new company that registers must establish a bank account as one of its mandatory requirements.
Two registration options exist for entities in Madagascar.
A subsidiary must register itself as a business entity according to Malagasy Law through either a limited company (SA) or limited liability company (SARL).
A business branch lacks legal independence, so it cannot work under its name. The business entity operating as a branch may employ various names such as liaison office, resident representative or representative office, commercial branch, agency and other equivalents. After establishing as a new business entity, you must request three identification numbers from the Tax Administration (NIF), the National Bureau of Statistics (statistical information) and the Trade and Companies Registry (RCS). A mandatory registration exists at the National Fund for Social Welfare (CNaPS) as detailed in the Labour section.
The Economic Development Board of Madagascar operates its one-stop shop as the technical body dedicated to company registration where entities can be represented.
By following these instructions, you can understand the Madagascar registration process.
Understand the commercial real estate market in Madagascar
- Retail Spaces: Shopping malls, markets, and small retail units.
- Office Spaces: Co-working spaces, corporate buildings, and office rentals.
- Hospitality & Tourism: Hotels, lodges, and resorts (Madagascar has a strong tourism industry).
- Industrial & Warehousing: Storage spaces, logistics hubs, and manufacturing zones.
Challenges to consider
Land ownership regulations: Foreigners cannot own land but can lease long-term.
Infrastructure gaps: Some regions lack developed roads and utilities.
Economic fluctuations: Political and economic stability affect investment trends.
Register your real estate business
- Sole Proprietorship (simple but limited liability).
- Limited Liability Company (SARL) (most common for real estate).
- Société Anonyme (SA) (for larger projects and investors).
Steps to register
- Choose a business name, check availability with EDBM (Economic Development Board of Madagascar).
- Register with the EDBM Submit business documents.
- Obtain a Tax Identification Number (TIN). Required for legal transactions.
- Open a business bank account, essential for handling financial transactions.
- Get necessary licenses & Permits, may include construction permits, land-use approval, or environmental impact assessments.
Secure funding for your business
Commercial real estate requires significant capital. Here are funding options:
- Personal savings & partnerships (local or foreign investors).
- Bank loans & mortgages (local banks offer property financing).
- Government incentives & grants (for tourism and infrastructure projects).
- Foreign Direct Investment (FDI) (partnering with international firms).
Identify and acquire properties
Since foreigners cannot own land, you can:
- Lease land long-term (up to 99 years).
- Form a joint venture with a Malagasy partner.
- Invest through a local business entity registered in Madagascar.
Develop your commercial real estate projects
Renovate or Build New Properties, ensure compliance with zoning laws and building codes.
Partner with Contractors & Architects, Work with reputable firms.
Install Essential Infrastructure, Internet, electricity, security, and parking.
Establish rental prices that compete with the market through research.
Manage operations & compliance
Hire property managers. To handle tenants, maintenance, and security. Ensure Legal Compliance, Stay updated on tax obligations, property laws, and tenant rights.
Optimize Finances: Use property management software to track income and expenses.
Stay updated on real estate trends
Monitor Government Policies: Madagascar’s real estate laws evolve.
Follow Economic Developments: Infrastructure projects can boost property demand.
Embrace Green & Smart Buildings: Sustainable real estate is becoming popular.
Conclusion
A commercial real estate business in Madagascar will yield high profits for those who select strategic locations and follow legal requirements while creating an effective marketing approach. Foreign partnerships combined with government incentives and strategic investments enable the development of successful real estate business operations in Madagascar.
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