You already have a good business concept. Morocco is open to foreign investment. The market is prepared with what you have to offer. Yet, there is one question, which you must answer before you plunge into it: how much will this cost? Get the complete financial picture, and you will not be surprised. A lot of the entrepreneurs only look at government fees. They overlook other factors that are very crucial but build up fast. There are notary fees, bank fees, legal announcements, professional advisors, and all that. At the end, you will have the right amount of money to budget and the appropriate place for your money.
The overview of the big picture
A realistic range would be a good place to begin. In the case of the typical SARL (the most widespread type of company), the total cost of registration is usually between 15,000 and 25,000 Moroccan Dirhams. This is all the way to the end.
The number that you are going to be is predetermined by some factors. The type of share capital you raise is important. The ownership structure is a factor. Whether or not to use of professional advisors or not will influence the bottom line. And your position in Morocco can make some fees. Consider such a range to be your planning minimum. At the bottom end lie simple structures that have local owners and share capital that is very small. The upper end is reached by complex structures which have foreign shareholders and high capital.
Government registration fees: The formal costs
Company registration has certain fees that are charged by the government. They cannot be compromised and apply to all people.
Commercial registry fees
It is estimated that the fee charged to register your company with the local Commercial Registry will be around 1,000 to 2,000 MAD. This cost is the first-time entry and issuance of your registration extract. The amount that will be paid is determined by the type of company you have and the amount of share capital.
Registration of Tax: registration of your Tax Identification Card (Carte d’Identification Fiscale) is free. You can, however, pay small administration charges on certified copies or for fast processing.
Publication fees: All new companies in Morocco have to place an announcement in a newspaper regarding their legal announcements. This preaches your establishment to the masses. It costs between 1,500 and 2,500 MAD for the newspaper and publication area.
Registration before Social Security: There is no cost associated with registering before CNSS (Caisse Nationale de Securité Sociale). But after the employment of workers, the monthly payments start.
Notary fees: The law firm foundation
The incorporation of the company in Morocco needs a notary. This is not optional. The articles of association are prepared, and the signaturesare verified by the notary and legal compliance ensured.
Office and address costs
The law of Morocco provides that all companies should have a registered office address. This does not imply that you must have a physical office, but you must have an address.
Virtual Office or Registered Address: In case you are working remotely, companies are offering registered address services. These cost 3,000 to 8,000 MAD annually. They deliver a legal address to you, and they get official mail.
Physical Office Lease: Budget rent, deposit and agency fees are incurred when renting actual space. The starting salary of a small office in Casablanca or Rabat is between 3,000 and 8,000 MAD per month. One month of rent is equal to agency fees. The deposits are one to three months of rent.
Justification of address: There are banks and officials who may need addresses. This is done through a utility bill or lease contract in the company’s name.
Annual costs of the ongoing memorandum
Registering is not the end. There will be repeated costs per year to your company.
Renewal of your commercial registry annually: About 1000-2000 MAD per year ensures that your registration is maintained.
Tax returns: Annual tax returns have accountant charges that range between 3, 000 and 8, 000 MAD.
CNSS contributions: When staff are hired, the amount of social security contributions is about 20%-30% of gross salaries.
Professional tax: A majority of companies pay professional tax (Taxe Professionnelle) per year. This is determined by the location and business activity.
Hidden and unexpected costs
Smart budgeting implies making plans when things go wrong. Certain expenses are unexpected for new business entrepreneurs.
Rapid processing: Government offices charge more if you are in a hurry to have the documents. The cost of an expedited request is expected to be 200-500 MAD.
Certified copies: Each government office will insist on certified copies. All the certifications are 20 to 50 MAD. This is cumulative in a variety of uses.
Transportation and time: Travelling is a time and money-consuming process between notaries, banks and government offices. Include transportation expenses and wasted man-time.
Language support: In case you do not know Arabic or French, the cost of a translator during a meeting will increase by 500 to 1,500 MAD.
Summary: Invest wisely in your foundation
It is not cheap to register a company in Morocco. There is no way around it. But treat these expenses as an investment, and not an expense. Every payment is made to comply with the legal requirements, professional advice, and a strong base of operation. The biggest sin is to compromise corners in order to save some dirhams. Any omission of a necessary step will create delays, fines, and rework. These are much more expensive than doing them for the first time. Collaborate with loyal practitioners. Request quotes before contacting anybody. Construct a budget with all the costs that we talked about. And also bear in mind that the lowest cost does not always work out to be the best. Your Moroccan company must have a good beginning. You are providing your business with the very thing that you do by knowing and calculating the entire cost of registration. The charges you pay today give the success of tomorrow the platform.
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