Morocco was recently named among the 50 most innovative economies in the world by the 2016 Bloomberg Innovation Index. Morocco’s economy has made astounding progress in the last decade to become such an attractive destination for global investors and business people, including start-ups and entrepreneurs. Morocco’s economy used to rely mainly on tourism and textiles. Now, Morocco boasts a strong automotive sector, aeronautics sector, and its overall economy is being more diversified and industrialized.
What is involved in registering a company in Morocco?
- All Moroccan companies are required to have a registered office in Morocco
- Prior to incorporation, a bank account must be opened to provide evidence that the share capital has been deposited
- A minimum of one director is required
- Accounts do not have to be filed annually
- Minimum share capital of MAD100,000 (€9,100)
- 100% of the minimum share capital must be paid up in advance
What are the main business entities in Morocco?
- Limited Liability Company (SA)
- Private Limited Company (SARL)
- Branch Office
- Sole Proprietorship
Registering a Limited Liability Company (SA)
A Limited Liability Company (SA) in Morocco requires at least five shareholders who may be individuals or legal entities. Each shareholder’s liability is limited to the amount of share equity they hold. 25% of the equity capital must be paid in advance of paid in cash contributions. If the equity capital is paid in contributions in kind, it must be fully paid upon incorporation. The company will have no corporate name just a trade name.
Registering a Private Limited Company (SARL)
A Private Limited Company (SARL) in Morocco is an intermediate type between associations of persons and of capital. It is always a trading company, regardless of its corporate name and its minimum equity capital is 10,000 MDh. It may be formed by two or more members who are only liable to the amount of their share of the equity capital in the company. Unlike a general partnership, members of a private limited company do not need to be registered merchants. The private limited company must file a memorandum of association as part of its incorporation process. The capital stock has to be fully described and paid up as the company is formed
Registering a Branch Office
The branch affiliate or subsidiary of a foreign corporation is regarded as a separate legal entity. The Moroccan branch, however, has to disclose certain details regarding its parent-company, its representatives and its delegated powers
Registering a Sole Proprietorship
Foreigners may establish in Morocco sole proprietorships. In a sole proprietorship, the business is conducted under the responsibility of an individual personally liable for the debts of the business to the extent of all business and personal assets. The business must be registered with the Commerce Registry and with the tax authority
For more information on registering a company in Morocco or to proceed with a formation, please do not hesitate to contact us on +353(0)1 687 4518 or fill out a contact form and a formation expert will be in contact shortly.