Operating a Société Anonyme (SA) in Madagascar comes with a comprehensive compliance framework. In this episode, we break down the legal, financial, and administrative obligations that SA companies must meet—covering audits, tax reporting, and governance requirements—to help business owners stay compliant and avoid costly penalties.

What You’ll Learn in This Episode:

📊 Audit and Financial Reporting

• Mandatory Audit: Appointment of an approved independent auditor for annual statutory audits.
• Financial Reporting Standards: Use of the national accounting framework (PCG 2005) aligned with IFRS 2004.
• Dual Reporting: Some companies maintain both PCG-compliant and full IFRS statements for local and international needs.
• Language Requirement: All company accounts must be maintained in French.

• Corporate Income Tax (CIT): 20% on net profits for SA companies with annual turnover over 200M MGA.
• Minimum Tax: 0.5% of annual turnover plus a fixed amount for certain activities.
• Tax Filing Deadlines: May 15 for calendar-year companies; fourth month after fiscal year-end for others.
• Other Taxes: VAT at 20% and potential withholding taxes on payments to non-residents.

• Local Representation: Appointment of a resident representative to receive official documents.
• Statutory Documents: Articles of Association, tax identification number (NIF), and registration with the Trade and Companies Registry (RCS).
• Staff Registration: Employees must be registered with social and health security systems; notify the Labor Inspectorate at the start of operations.
• Ongoing Reporting: Strong governance and transparency are expected, especially for publicly traded companies.

If you’re managing or planning to establish an SA in Madagascar, this episode provides a clear roadmap of compliance requirements—from audits and taxes to legal and administrative obligations—ensuring your company operates smoothly and legally in the local context.