Business Formation

Morocco has capitalised on its close proximity to Europe and relatively low labour costs to build a diverse, open, market-oriented economy. This makes Morocco the natural choice to bridge  business into Africa, watch Morocco 2030 on our video section, and catch a glimpse of tomorrows Morocco.


Forming a company in Morocco – what is involved?

  • All Moroccan companies must have a registered office in Morocco

  • A bank account must be opened prior to the incorporation to provide evidence that the share capital of the proposed SARL has been deposited

  • A minimum of one director is required

  • 100% of the minimum share capital must be paid up in advance

Success! Message received.


Setting up in Morocco – what are the main features?

  • Limited liability companies (SA) must have a minimum of five shareholders who can be either legal entities or individuals

  • The shareholders’ liability is limited to the amount of share equity the shareholder hold

  • Upon incorporation of the limited liability company, a quarter of the equity capital must be paid in advance if paid in cash contributions

  • If it is paid in contributions in kind, it must be fully paid upon incorporation

  • Both bearer and registered shares may be issued by the limited liability company

  • The minimum share value is 50 MDh

  • The company has no corporate name but a trade name, and there are generally no restrictions on the sale and transfer of shares to third parties


Morocco Private Limited Company (SARL) 

  • The private limited company (SARL) is an intermediate type between associations of persons and of capital

  • It is always a trading company, regardless of its corporate name and its minimum equity capital is 10,000 MDh

  • It may be formed by two or more members who are only liable to the amount of their share of the equity capital in the company

  • Unlike a general partnership, members of a private limited company do not need to be registered merchants

  • The private limited company must file a memorandum of association as part of its incorporation process

  • The capital stock has to be fully described and paid up as the company is formed

Other Status

A Branch Office in Morocco?

  • The branch affiliate or subsidiary of a foreign corporation is regarded as a separate legal entity

  • The Moroccan branch, however, has to disclose certain details regarding its parent-company, its representatives and its delegated powers     


Sole Proprietorship/ Trader in Morocco?

  • Foreigners may establish in Morocco sole proprietorships

  • In a sole proprietorship, the business is conducted under the responsibility of an individual personally liable for the debts of the business to the extent of all business and personal assets

  • The business must be registered with the Commerce Registry and with the tax authority