In brief: An Economic Interest Group (EIG) in Morocco is an entity formed under Law 13-97 that allows companies to pool resources without merging. It is not taxed in its own name: since the 2025 Finance Law, tax is assessed in the name of its members on their share of the result (Article 2-I-7° of the CGI). Members bear unlimited joint and several liability for the group’s debts.
An Economic Interest Group (EIG), known in Morocco as a Groupement d’Interet Economique (GIE), is a legal structure that allows two or more legal persons to pool certain resources without merging their businesses. It is one of several legal forms of companies in Morocco. Established under Law 13-97, promulgated by Dahir No. 1-99-12 of February 5, 1999, the EIG offers a flexible framework for cooperation while preserving each member’s autonomy. This entity may be formed for a fixed or indefinite period and consists of an agreement to implement each member’s own resources to carry out, develop, or facilitate a common economic activity.
This guide covers the legal framework of the EIG in Morocco, the formation procedure, liability regime, governance, taxation, as well as the advantages and disadvantages compared to other corporate structures.
Legal Framework of the EIG in Morocco: Law 13-97
Law 13-97 on economic interest groups is the founding legislation for EIGs in Morocco. Published in Official Bulletin No. 4678 on April 1, 1999, this law draws heavily on the French model while adapting it to the Moroccan context. It defines the EIG as an entity formed by two or more legal persons, for a fixed or indefinite period, with the aim of pooling common resources to facilitate, increase, or improve the results of its members’ activities.
Legal Personality and Commercial Registration
An EIG has its own legal personality, separate from that of its members. It enjoys this personality from the date of its registration with the commercial register. This registration is mandatory, regardless of whether the group’s purpose is commercial or civil. Legal personality gives the EIG the capacity to bring legal proceedings, enter into contracts in its own name, and hold assets necessary for its operations.
Purpose and Activity Limitations
In accordance with Article 2 of Law 13-97, the EIG must carry on its activity primarily on behalf of its members. It may under no circumstances substitute for them. Specifically, the EIG may not:
- Substitute for its members in the conduct of their activities
- Operate the business assets of its members, except partially and on an ancillary basis
- Exercise supervisory power over its members’ activities
- Hold shares or equity interests of its members or of any third-party company
The EIG is not intended to generate profits for its own account. It may only carry on an activity that is ancillary to that of its members. This limitation is fundamental and distinguishes the EIG from a standard commercial company.
Rights and Certificates of Members
Each member of the EIG holds certificates representing their rights in the group. However, these certificates are not negotiable, which preserves the intuitu personae nature of the EIG. The group may not make a public offering of securities. Nevertheless, in certain cases, it may issue bonds for the benefit of its members, or even convertible bonds, provided that the members themselves are authorized to make such issues.
How to Form an EIG in Morocco
The formation of an EIG in Morocco follows a procedure governed by Law 13-97. The group is formed under a group contract subject to the general rules of the DOC (Dahir of Obligations and Contracts).
Mandatory Content of the Group Contract
The group contract must compulsorily include the following elements:
- The name of the group, after obtaining a negative certificate from OMPIC
- The purpose of the group
- The duration for which the group is formed
- The address of the group’s registered office
- Information on each member: business name, legal form, registered office, commercial register number, and where applicable, the amount and value of contributions
The contract also determines the organization of the group as well as the rights and obligations of the members. It must comply with the publicity rules provided by law and is only enforceable against third parties from the date of its publication. Any subsequent amendment to the contract is subject to the same formalities.
Formation With or Without Capital
One of the key advantages of the EIG is the possibility of forming it without share capital. When members opt for a capital-free formation, they avoid ad valorem registration fees. However, the contract may provide for financial contributions to cover the group’s operating expenses. If capital is provided for, the contract must specify each member’s financial contributions.
Administrative Steps for Formation
The practical steps for creating an EIG include:
- Obtaining a negative certificate from OMPIC
- Drafting and signing the group contract
- Registering the contract with the DGI
- Filing at the Commercial Court registry
- Registration with the commercial register
- Publication in a legal gazette and the Official Bulletin
Liability of EIG Members
The issue of liability is a critical aspect of EIGs in Morocco. The contract must specify the rights and obligations of the members, but Law 13-97 imposes a strict liability regime.
Unlimited Joint and Several Liability
As a general rule, members’ liability is unlimited and joint and several. Members are liable for the debts of the EIG with their own assets. With respect to third parties, their liability is joint and several and is not limited to their percentage of contribution. This means that a creditor of the EIG may pursue any member for the entire debt, regardless of that member’s share in the group.
This unlimited liability is a major difference from the LLC (SARL), where partners’ liability is limited to the amount of their contributions. In internal relations among members, the group contract governs the allocation of liabilities.
Governance and Administration of the EIG
One or more administrators, chosen from among the members, administer the EIG. The group contract defines the procedures for appointment, powers, and term of office of the administrators. Law 13-97 grants considerable contractual freedom to members in organizing the group’s governance.
Collective decisions are taken in accordance with the procedures set out in the contract. In the absence of specific provisions, decisions are taken unanimously. The contract may also provide for the appointment of one or more management auditors responsible for verifying the regularity of the group’s operations.
Tax Regime of an EIG in Morocco
Principle: Taxation in the Name of Members
The 2025 Finance Law repealed the former exclusion of EIGs from the scope of corporate tax (Article 3-4° of the General Tax Code). For financial years beginning on or after 1 January 2025, EIGs are listed among the entities liable to Corporate Tax (Article 2-I-7° of the CGI), but tax is assessed in the name of the legal and natural persons who are members, in proportion to their share of the group’s net result. In practical terms, the EIG does not itself pay tax on its result.
The taxable result of each corporate member includes its share of the profits made or losses incurred by the group (Article 8-V of the CGI). For a member who is a natural person, this share is included in their net professional income (Article 26-II of the CGI). This mechanism avoids double taxation and is one of the main fiscal attractions of the EIG.
Reporting Obligations
The EIG must maintain proper accounting records and file a tax return, together with a statement allocating the net result among the members, showing for each member the name or company name, address, tax identification number and share of the net result (Article 20-I of the CGI). Members then incorporate their share of the result into their own tax base, whether for corporate tax or personal income tax purposes, depending on their own tax status.
Dissolution of an EIG
The dissolution of an EIG may occur in several cases provided for by Law 13-97:
- Expiry of the term specified in the contract
- Achievement or extinction of the group’s purpose
- Unanimous decision of the members, unless the contract provides otherwise
- Court order for just cause
- Death, incapacity, or judicial liquidation of a member, unless the contract includes a continuation clause
After dissolution, a liquidation phase begins. The liquidator is appointed according to the conditions set out in the contract or, failing that, by court decision. The EIG retains its legal personality during the liquidation period, until its removal from the commercial register.
EIG vs LLC (SARL): Advantages and Disadvantages
Advantages of the EIG
- Flexible formation: the group can be formed without share capital
- Taxation in the name of members: no double taxation, as each member is taxed on its share of the result
- Contractual freedom: wide latitude in organization and governance
- Cost pooling: shared resources (premises, staff, equipment) without merger
Disadvantages of the EIG
- Unlimited liability: members are jointly and severally liable for all debts without limit
- No profit motive: the EIG cannot generate profits for its own account
- Non-negotiable certificates: members cannot freely transfer their interests
- Dependence on members: the departure of a member may weaken the group
Compared to the LLC (SARL), the EIG offers greater flexibility but less asset protection. The LLC limits partners’ liability to their contributions, making it better suited for higher-risk activities. The EIG, on the other hand, is ideal for ad hoc or structural cooperation between companies wishing to maintain their independence.
Practical Use Cases for EIGs in Morocco
The EIG in Morocco is particularly used in the following situations:
- Export consortia: several SMEs group together to prospect foreign markets and share international marketing costs
- R&D pooling: companies in the same sector pool their research and development resources
- Central purchasing bodies: the EIG enables negotiation of favorable prices with suppliers through consolidated purchasing volumes
- Shared services: pooling of support functions such as accounting, IT, or logistics
- Liberal professions: chartered accounting firms, law firms, or architecture practices can create an EIG to share premises and administrative staff. A holding company may also be considered as an alternative structure for grouping business activities
The EIG is thus a valuable tool for Moroccan businesses seeking to cooperate without losing their autonomy, while benefiting from economies of scale and a favorable tax framework.
Frequently Asked Questions
What is the minimum number of members required to form an EIG in Morocco?
An Economic Interest Group in Morocco requires at least two members to be constituted. There is no maximum number of members, and they can be natural or legal persons. The members must share a common economic objective that justifies the creation of the group.
Is an EIG subject to Corporate Tax in Morocco?
Since the 2025 Finance Law (financial years beginning on or after 1 January 2025), the EIG is listed among the entities liable to Corporate Tax (Article 2-I-7° of the CGI), but tax is not assessed in its name: it is assessed in the name of its members, legal persons (corporate tax) or natural persons (personal income tax), in proportion to their share of the group’s net result. The EIG attaches to its tax return a statement allocating the net result among its members (Article 20-I of the CGI).
Can a foreign company be a member of an EIG in Morocco?
Yes, foreign companies can participate in a Moroccan EIG, provided they meet the legal requirements and the activity is carried out in Morocco. This makes the EIG a useful vehicle for international cooperation projects, particularly in export consortia or joint ventures targeting the African market.
What is the difference between an EIG and a joint venture in Morocco?
Unlike a joint venture (societe en participation), an EIG has legal personality and must be registered with the trade register. The EIG is also limited to ancillary activities that support its members’ main businesses, whereas a joint venture can conduct any commercial activity.
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