Business structure in Morocco

Incorporating a foreign entity

A foreign company can establish in Morocco as an établissement stable in different ways:

Branch
It can only carry out activities within the corporate purpose of the parent company. It must keep its accounting records in French and in accordance with local law.

Representative Office or Agency
Their activity is limited solely to advertising and promoting the parent company. It can carry out market research and explore business opportunities. It cannot obtain income.

 

It is advisable to seek assistance from a local legal firm or consultant when choosing the form of economic activity.

Incorporating a Moroccan entity

Limited Liability Company (S.A.R.L.)
The most common legal form:

  • members are only liable for contributions made.
  • it is an autonomous legal entity.
  • little share capital required (around 980 euros).

Public Company
Autonomous legal entity in terms of liability and taxation similar to a S.A.R.L., but with additional obligations, such as governing bodies and higher setting-up costs than a S.A.R.L.

Others

  • Collective Company
  • Civil Company
  • Limited Partnership
  • Economic Interest Grouping (GIE): equivalent to a joint venture.

The most common form of joint venture with a Moroccan partner is a Groupement d’Intérêt Economique (GIE) as there is not specific legislation on forming mixed companies.