Madagascar client case studies in 2022
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A South African Multi-National Group expands their business to Madagascar
Background
- Our Client is a South African company that designs and manufactures currency automation systems and conducts its business worldwide. The company offers banknote and securities processing systems, smart card technology, identification systems card systems, and consulting services.
- Our Client had recently won a Government contract and wanted to set-up a branch in Madagascar to efficiently fulfil its contractual obligations in Madagascar. The Client also wanted to secure a physical office space in Antananarivo as a base for their operations.
Engagement planning
- Our Director of Client Engagements, Mr. Seth Ochieng had a detailed discussion with our Client to understand their requirements in Madagascar, rationale behind setting up a branch against a limited liability company. Over the call, Seth also explained the Client about the local legal representative and resident bank signatory requirements for Madagascar.
- Our Client was interested to proceed with Bejarano ADF Consultants Group PLC, Seth prepared and emailed our Client an engagement advancement proposal and the formal invoice including, i) nominee legal representative services for 6 months, and ii) assistance to locate physical office premises.
- Our Client promptly provided the requisite due diligence documents and settled our professional fee. Thereafter, we prepared i) a detailed Engagement Project Plan mapping out steps to engagement completion and ii) a quality business plan to assist with corporate bank account opening.
Madagascar Branch Incorporation & Legal Representative
- Bejarano ADF Consultants Group PLC emailed our Client, the full list of documents required to advance branch registration including documents requiring translation and notarization/legalization in the Madagascar embassy in South Africa.
- Within two weeks, our Client provided us the requisite document and requested Bejarano ADF Consultants Group PLC to assist with the translation of the documents to French. Within 1 week of receiving the documents, Bejarano ADF Consultants Group PLC supplied the translated documents to our Client.
- Bejarano ADF Consultants Group PLC sourced multiple candidates for our Client to finalize the legal representative for your Madagascar branch. Once our Client selected their preferred legal representative, Bejarano ADF Consultants Group PLC prepared the branch incorporation documents, tax registration application and supplied it to the Client for signatures and courier to Madagascar.
- Before our Client could courier the signed incorporation documents, COVID-19 pandemic struck South Africa and there were Government enforced lockdowns, which forced the Client to put the engagement on hold till the time business normalcy resumed in South Africa.
- After about 12 months of delays, our Client finally decided to resume the engagement and supplied Bejarano ADF Consultants Group PLC with the requisite signed incorporation forms. Bejarano ADF Consultants Group immediately submit a quality branch registration application to the Madagascar Economic Development Board.
- Within 4 weeks, Bejarano ADF Consultants Group PLC supplied our Client, with the scans of branch incorporation documents including, i) Certificate of deposit, ii) Companies registry extract “RCS Extract”, iii) Fiscal card, iv) Statistical card, v) Minutes of the general meeting duly registered and vi) Domiciliation agreement duly registered.
Madagascar Corporate Bank Account Opening & Physical Office
- Based on our Client’s requirements, Bejarano ADF Consultants Group PLC sourced multiple office premises that the Client could lease for their physical office. But unfortunately, due to delays and complications due to COVID -19, before our Client could secure the same the facility was rented to another lessee.
- Bejarano ADF Consultants Group drafted a detailed business plan outlining the company’s core activities, financial projection, market analysis and corporate structure.
- Once the business plan was approved and signed-off by our Client, Bejarano ADF Consultants Group PLC contacted multiple Madagascar banks to increase approval chances for our Client.
- Midway through the account opening process, our Client informed Bejarano ADF Consultants Group PLC that they will not be recruiting any employees for the next couple of months and neither could the bank signatory visit Madagascar due to travel restrictions.
- Bejarano ADF Consultants Group PLC tried negotiating with the banks for a travel waiver, but unfortunately banks in Madagascar do now allow corporate bank account opening without meeting the bank signatory.
- Bejarano ADF Consultants Group PLC recommended our Client to i) either leverage existing relationships with banks to open a corporate account for their Madagascar branch or ii) appoint a nominee bank signatory till their preferred signatory could travel to Madagascar (high risk).
- Our Client then proceed to leverage their existing relationships and managed to secure an offshore corporate bank account for their Madagascar branch.
Engagement completion
- Following engagement completion, Bejarano ADF Consultants Group PLC couriered the full company kit to our Client, including Madagascar corporate documents and requested for a Client feedback survey.
