Morocco is a small country with rich cultural traditions, Morocco attracts a pleasant climate and an incredible combination of strict traditions with the most modern trends in Europe. And although most Arab countries are considered quite closed, Morocco is an exception: it is not difficult to get a visa here.
Organizational and legal forms of business and personnel selection
Investors and entrepreneurs in Morocco often choose one of the following organizational and legal forms of doing business:
- public company (Sociedad Anonima, SA);
- closed joint-stock company (Societe a Responsabilite Limitee, SARL).
Conditions for setting up a company in Morocco
A public limited company must have five members (individuals and legal entities). At the same time, the founders of the company fulfill the obligations of the enterprise only within the limits of their share in the share capital, the minimum size of which is 300 thousand Moroccan dirhams (MAD).
One-fourth of the authorized capital is deposited into the company’s account before registration, and if payment is not made in monetary terms, then the capital at the time of registration is paid in full. For SA, registered and bearer shares are issued. The owners of such assets are free to transfer and sell them to third parties. The directors and shareholders of a public company can be non-residents of Morocco, but all directors must be shareholders of the company. The company is managed by a board of directors, which can include from three to twelve people.
Closed limited liability companies are established by one participant (natural or legal person). In this case, the minimum authorized capital will be 100 thousand Moroccan dirhams and the entire amount must be paid at the time of registration of the company. SARL companies can only issue registered shares that cannot be transferred to third parties without the consent of others. Such a company can be managed by one director, who is not required to be its shareholder. Both directors and shareholders of the company can be non-residents of the country.
Company registration
If you are going to register a company in Morocco, you first need to obtain a certificate confirming the registration of the company name (Certificat Negatif) from the Regional Investment Center (Center Regional d’Investissement, abbreviated as CRI), it is issued in just a day, and the cost will be 230 dirhams.
The owner of the company must then deposit the charter capital into a bank account, receive a receipt (attestation de depot) and provide the bank with the charter of the company. After that, the account with money is frozen until the end of the founding process.
Then the constituent documents are certified by the city hall (Commune), and then the founders of the company can submit all documents for registration to the Ministry of Finance, and pay the patent fee (in the commercial court, the social security service, and the tax office).
In addition to the registration form, the founder provides the following documents:
- Certificat Negatif – original and three copies;
- bank receipt (attestation de depot) – original and one copy;
- signed company charter – at least five copies;
- lease agreement for premises for the company’s office (contrat de bail) – two copies;
- identity card of the company managers – three copies;
- the notice to be published in the Official Gazette and Legal Gazette – two copies.
The Regional Investment Center (CRI) coordinates the ongoing registration processes, after which the applicant receives a tax ID, certificate of business registration, books and records, and registration with the social security service.
The founder then applies the Service Economique de la Commune, which assesses the company’s ability to provide a safe and healthy working environment.
Taxes
Capital gains and equity gains in Morocco are taxed at 15% and the standard VAT rate is 20%. Interest, bonuses, service fees, and other profits are subject to income tax of 36% for non-residents of the country.
Outcome
When choosing a job or starting a business in Morocco, foreigners should also take into account the fact that they mainly speak Arabic, and English, French, and Spanish are also held in high esteem. Knowledge of at least one or two of the above languages will significantly increase the chances of a successful business in this amazing developing country, open to foreign investment.
