Why register a company in Morocco?
There are several compelling reasons for choosing to register a company in Morocco:
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Cost-Effective Operations: Morocco boasts lower operating costs compared to neighboring countries, making it an appealing choice for businesses aiming to streamline expenses.
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Strategic Access to European and African Markets: Positioned strategically at the intersection of Europe and Africa, Morocco offers companies convenient access to both these markets.
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Business-Friendly Environment: With a stable political and economic climate, Morocco provides a favorable atmosphere for business, supported by a government that encourages foreign investment.
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Skilled Workforce: Morocco is home to a sizable and skilled labor force available at competitive rates, making it an attractive destination for companies engaged in labor-intensive operations.
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Tax Advantages: Morocco provides tax incentives and subsidies for companies investing in targeted sectors like renewable energy, tourism, and industrial development.
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Government Support: Various incentives and tax breaks are offered by the government to encourage companies to establish and operate in Morocco.
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Robust and Diversified Economy: Morocco boasts a diverse economy with robust agriculture, tourism, and manufacturing sectors, providing a stable foundation for various industries.
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Bilingual Advantage: With proficiency in both French and Arabic, along with strong connections to Francophone Africa, Morocco offers a linguistic advantage for businesses aiming to navigate these markets.
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Advanced Infrastructure: Morocco features a well-developed infrastructure and a modern transportation network, facilitating smooth business operations and logistics.
Procedure for Registering a Company in Morocco
The process of company registration in Morocco typically involves the following steps:
Step 1: Choose your company type Begin by selecting the type of company you want to establish. Common options include:
- Limited Liability Company (SARL)
- Public Limited Company (SA)
- Branch of a foreign company
Step 2: Choose a company name Select a unique name for your company. Use the guidelines provided by the Moroccan Office of Industrial and Commercial Property (OMPIC) and check name availability on their website: www.ompic.ma
Step 3: Prepare the required documents Gather necessary documentation based on your chosen company type, including:
- Articles of Association (for SARL and SA)
- Application for Company Registration (for all types)
Access the forms on the Regional Investment Center's (CRI) website: http://www.cri.gov.ma/
Step 4: Identify company officers and shareholders Identify at least one director (for SARL and SA) or one representative (for a Branch of a foreign company). Directors or representatives must be at least 18 years old. Shareholders can be individuals or corporate entities.
Step 5: Capital requirements Ensure compliance with capital requirements; SARLs require a minimum capital of MAD 10,000, while SAs mandate MAD 300,000. There is no minimum capital requirement for branches of foreign companies.
Step 6: Register your company Submit your application to the Regional Investment Center (CRI), either in person or online via their website: www.cri.gov.ma
The approximate registration fees are:
- SARL: MAD 1,000 (about $100)
- SA: MAD 3,000 (about $300)
- Branch of a foreign company: MAD 3,000 (about $300)
Step 7: Register for taxes After registration, enroll with the Tax Administration of Morocco, either in person or online via the following link: http://www.tax.gov.ma/
Step 8: Obtain necessary permits and licenses Check with relevant authorities and industry regulators for any additional permits or licenses required for your specific business activities.
Documents Required for Company Registration in Morocco
When registering a company in Morocco, several documents may be required. The specific documents can vary based on the type of company and the industry it operates in. Here are some documents that may be expected:
- Proof of Identity of directors and shareholders.
- Company Articles of Association
- Notarized Certificate of Deposit of Minimum Share Capital
- Proof of Registered Business Address
- Tax Identification Number
- Bank Certificate of Deposit of Share Capital
- Work Permit for Foreign Nationals (if applicable)
- Business License
- Chamber of Commerce Registration Certificate
It's essential to note that the specific document requirements can vary, and it is advisable to check with the relevant authorities or legal professionals to ensure compliance with all necessary documentation based on the type of company and industry.
Time-frame for Company Registration in Morocco:
The complete registration process, starting from document preparation to the receipt of the Certificate of Incorporation, typically spans between 2 to 4 weeks. The duration may vary based on the complexity of your application and the efficiency of the registration authorities.
Types of Business Entities for Company Registration in Morocco
In Morocco, the most common entities are:
Limited Liability Company (SA):
Minimum of 5 shareholders, who can be legal or individual entities.
Minimum capital of MAD 300,000 if not raising funds publicly; MAD 3 million if raising funds.
25% of share capital must be paid upon incorporation, with the balance within 3 years.
Shares are freely transferable.
Management by a board of directors or an executive board under the control of a supervisory board.
Private Limited Company (SARL):
No legal requirement for a minimum share capital, but typically starts with MAD 10,000.
Maximum of 50 shareholders.
Managed by one or more managers appointed by shareholders, with personal liability for decisions.
Shares are freely transferable among spouses and parents but not among third parties without majority shareholder consent.
Branch Office:
Not recognized as a separate legal entity.
Must adhere to both Moroccan laws and the laws of its country of incorporation.
Required to provide specific information about its parent company, representatives, and delegated powers.
Sole Proprietorship:
Foreigners can establish sole proprietorships.
Run by an individual, personally responsible for company obligations up to personal and business assets.
Must register with the Commerce Registry and tax authority.
Eligibility for Morocco Company Registration:
To qualify for company registration in Morocco, the following requirements must be satisfied:
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Minimum 1 Shareholder:
Shareholder can be an individual or a corporate entity.
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Minimum 1 Director:
At least one director is required for company registration.
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100% Local or Foreign Shareholding:
Both local and foreign shareholding is allowed, providing flexibility in ownership.
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Registered Business Address:
The company must have a registered business address in Morocco.
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Minimum Share Capital:
The minimum share capital required to register a Limited Liability Company (LLC) in Morocco is MAD 30,000 (approximately USD 3,200).
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Tax Identification Number (TIN):
The company should obtain a tax identification number and comply with all relevant tax obligations.
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Work License for Foreign Nationals:
Foreign nationals may need to acquire a work license to operate in Morocco.
These eligibility criteria ensure compliance with the necessary legal and regulatory requirements for company registration in Morocco.
Various Taxes on Morocco Company Registration:
Before and after company registration in Morocco, firms are subject to several taxes, including:
Corporate Tax:
Companies are subject to a corporate tax rate of 28%.
Value Added Tax (VAT):
Companies engaged in taxable transactions must register for VAT.
Charge a VAT rate of 20% on the sale of goods and services.
Withholding Tax:
Companies are required to withhold tax on specific payments, such as dividends and interest.
The withholding tax rate ranges from 10% to 20%.
Personal Income Tax:
Companies are obligated to deduct personal income tax from their employees' incomes and remit it to the tax authorities.
Personal income tax rates vary from 0% to 35%.
Understanding and complying with these tax obligations is essential for companies operating in Morocco, both during the registration process and in the ongoing operation of the business. It's advisable to seek professional guidance to ensure accurate and timely adherence to tax regulations.
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Cost to Register a Company in Morocco
The cost to register a company in Morocco can vary based on factors such as the type of business entity, share capital, and associated legal and administrative fees. Generally, for a limited liability company, the registration cost may range from MAD 10,000 to MAD 50,000 (approximately USD 1,026 to USD 5,130). This amount typically covers notary fees, Trade Register fees, and Chamber of Commerce fees.
In addition to these costs, foreign nationals may incur expenses for obtaining a work permit, which can be up to MAD 10,000 (approximately USD 1,000). The cost of obtaining a business license will also depend on the specific type of company.
For accurate and detailed cost estimates for Morocco company registration, it is recommended to consult with business experts, such as those at Odint, who can provide specific guidance based on the unique requirements and circumstances of the business.
Updated on: Tuesday, January 30th, 2024