Establish a company in Morocco : All you need to know
In Morocco, a professional activity can be performed either:
- As an individual subject to income tax or under the auto-entrepreneur regime;
- Or through the establishment of a company.
Morocco has improved its corporate regimes
Over the last twenty years, Morocco has been trying to position itself as an emerging power in the world and as key economic player on the African scene.
Indeed, this can be seen through the construction of modern infrastructure, the implementation of sectoral strategies, an accelerated industrialization, the development of green energies as well as the signing of several free trade agreements with major global economic players. As such, the Kingdom offers a promising environment for investment in various sectors.
Morocco has become one of the most competitive countries in the region, and offers highly attractive conditions for both, domestic and foreign investors.
Currently, Morocco is ranked 53rd in the Doing Business index with an average score of 73/100. Morocco’s rank improves year after year. According to the report, the main challenge Morocco faces, is the access to bank credit, which is rated 45/100. Moreover, Morocco is ranked 24th most attractive tax system.
Establish a company : Legal forms
The LLC (Limited Liability Company) is the most popular form amongst investors for a company creation in Morocco, especially for medium-sized companies (turnover < 50 million dirhams).
Why choose the LLC :
- No minimum share capital required
- No minimum number of partners required (one is enough)
- Can be administered by a single manager
- External auditors are not required
- Simple to establish
- A partner’s shares can not be trasferred without the approval of the other partners.
- An LLC can not go public (public offering)
Why choose the PLC :
- Enhanced protection for minority investors
- Possibility of going public
- Advanced governance (board of directors, supervisory board, etc.)
- Minimum capital required (300.000 MAD of which 25% is released upon creation)
- Minimum number of shareholders required: 5
- Governed by a board of directors (3 members)
- Complicated establishment procedure
- External auditors are mandatory