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Employ Candidates Compliantly in Madagascar

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  1. Overview: Madagascar
  2. Expand without a company set up
  3. Global PEO and payroll
  4. Global HR Compliance
  5. Contractor vs. employee: which is better?
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Global Employer of Record in Madagascar

What Is a Global Employer of Record?

A Global Employer of Record (Global EOR) is a third-party organisation that shoulders the legal and administrative responsibilities of hiring, employing, and managing staff on behalf of a client company. Unlike a standard Employer of Record, a Global EOR can operate across multiple countries, offering a unified solution for managing international employees.

This international talent engagement model is especially advantageous for companies expanding into new markets. Typically, such expansion would require establishing a local legal entity, a time-consuming process laden with bureaucratic hurdles. Global EOR circumvents this necessity. It allows companies to deploy staff in multiple jurisdictions without navigating the complexities of local employment laws, tax structures, and compliance norms. This streamlined approach eliminates the daunting upfront investment and operational costs of establishing a foreign subsidiary or business unit.

The flexibility of a Global EOR model makes it ideal for market testing and agile operations. Companies can quickly enter and exit markets, scaling their workforce up or down based on real-time needs and market conditions. Not only does this minimise risk, but it also preserves the company’s existing tax structure and corporate governance framework. The result is a more efficient, compliant, and strategic approach to international business expansion.

A Cost-Effective, Risk-Free Alternative to Local Incorporation

Choosing Express Global Employment as your Global Employer of Record offers a distinct advantage over establishing a local entity. The local incorporation is often laden with uncertainties, legal complexities, and significant financial investments. You must deal with the administrative burdens of setting up a local entity and committing to long-term engagement in a foreign market without validated business viability.

With Express Global Employment, you can enter new markets with minimal risk and financial outlay. Our services provide the agility to adapt to market conditions quickly, allowing you to scale up or down as your business needs change. This flexibility eliminates the necessity of maintaining a local entity, saving you considerable time and money in the long run.

You can simultaneously test the waters in multiple markets without being bogged down by jurisdictional limitations or bureaucratic hurdles. This approach lets you focus on core business activities, ensuring that your international operations are fully compliant and professionally managed.

Advantages of Partnering with a Global Employer of Record

Eliminating the Barriers to Global Expansion

Firstly, a Global EOR eliminates the need for a company to go through the arduous and costly process of setting up a legal entity in a foreign jurisdiction. This includes navigating the complex web of local labour laws, tax regulations, and compliance requirements, which often vary significantly from one country to another.

Streamlining Talent Acquisition and Management

Secondly, a Global EOR plays a vital role in talent acquisition and management. With businesses looking to tap into global talent pools, a Global EOR can hire and manage employees on behalf of a company, ensuring compliance with local laws and offering standard or required benefits in the specific country.

Simplifying Payroll and Benefits Administration

The third aspect revolves around payroll and benefits administration. Companies do not have to familiarise themselves with the nuances of local payroll regulations or benefits structures. The Global EOR takes care of all these tasks, including tax withholding, social security contributions, and other local compliance requisites.

Risk Mitigation and Compliance

Lastly, risk mitigation is a huge benefit that a Global EOR provides. By outsourcing employment to a Global EOR, companies can mitigate risks associated with non-compliance of local employment laws and regulations. The EOR assumes responsibility for legal challenges that may arise from the employment relationship, thereby shielding the client company from potential liabilities.

Global Employment Solutions

Compliance and legal guidance at every step of the Global Employment Journey. 24/7 local support.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly specialised areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

Spotlight on Madagascar

  • Location: Madagascar is an island country in the Indian Ocean, off the coast of East Africa.
  • Capital: Antananarivo
  • Population: 25.9 million (2023)
  • Area: 587,041 square kilometres (226,659 sq mi)
  • Labour force participation rate: 86.48% (2021)
  • Currency: Malagasy ariary (MGA)
  • Holidays: New Year’s Day, Martyrs’ Day, Easter Monday. Labour Day, Ascension, Whit Monday, Independence Day, Assumption, All Saints Day, Christmas Day.

Economic Outlook

According to the World Bank, the Madagascar economy is expected to grow by 4.2% in 2023. This is a slowdown from the 5.7% growth rate recorded in 2021, but it is still higher than the average growth rate for Sub-Saharan Africa.

The slowdown in growth is due to a number of factors, including the global economic slowdown, the war in Ukraine, and rising inflation. However, the Madagascar economy is supported by a number of factors, such as a young and growing population, a rich natural resource base, and a number of ongoing economic reforms.

Investment Opportunities

Madagascar is a country with a number of investment opportunities, including:

  • Mining: Madagascar is rich in mineral resources, such as nickel, cobalt, and bauxite. There are opportunities for investment in mining and exploration.
  • Agriculture: Madagascar is a major agricultural producer, and there are opportunities for investment in irrigation systems, agricultural machinery, and food processing plants.
  • Tourism: Madagascar is a beautiful country with many to offer tourists, including beaches, rainforests, and national parks. Investment opportunities exist in hotels, resorts, and other tourism infrastructure.
  • Renewable energy: Madagascar has a lot of potential for renewable energy development, such as solar and wind power. There are opportunities for investment in renewable energy projects.

Effortlessly Expand Your Business in Madagascar with Express Global Employment

Navigating Madagascar’s complex legislative landscape for employment can be daunting for global companies looking to establish a local presence. Express Global Employment simplifies this with a tailored Employer of Record (EOR) solution designed to onboard and manage your international workforce cost-effectively and competently.

Why Choose Express Global Employment in Madagascar?

  1. Streamlined Legal Compliance: Madagascar has specific employment regulations that must be adhered to. We ensure 100% compliance with local laws so that you can focus on your business goals.
  2. Quick Onboarding and Payroll: We handle all aspects of employee onboarding, including contract preparation and social security registration. Our services also include monthly payroll management in local currencies.
  3. Work Permits and Visas: If your strategy involves bringing in expatriate personnel, we facilitate all required work permits and business visas, reducing the risk of immigration issues.
  4. Local Expertise: Benefit from our deep understanding of Madagascar’s labour market. We guide you through every step, mitigating employment risks and providing you with timely, accurate updates on your workforce’s legal status.
  5. Total Workforce Management: From talent acquisition to visa expiration tracking, we offer a comprehensive solution that allows you to concentrate on what you do best—running your business.

By partnering with Express Global Employment, you are not just outsourcing employment tasks; you are gaining a strategic partner committed to ensuring that your expansion into Madagascar is smooth, compliant, and efficient.

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