What are the Business Entities that can be established in Morocco by Foreign Nationals

Updated: Tuesday July 25, 2023 Categories: tags: , , , , , , , , , ,
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Business Entity in Morocco by ARKAD Plus

Most Common Business Entities in Morocco for Foreign Nationals

Foreign nationals can operate in Morocco either by creating a company under Moroccan law, by choosing the SARL (the equivalent of the LLC) or the SA (the equivalent of a Corporation). They can also establish a representative entity of a Foreign company, in this case, for tax purposes, these entities are qualified as permanent establishments (branch, liaison office, coordination office, a subsidiary, etc.).

More details on the legal entities, as well as their definitions, can be found as follows:

  • SARL: which stands for “Société à Responsabilité Limitée” is the equivalent of a Limited Liability Company. It can be used as a trading license, owned by one (called SARLAU – Associé Unique) or up to 50 associates, whether individuals or companies, without a minimum capital. The law prohibits the form of SARL for insurance, banking, credit, investment, capitalization and savings companies. 
  • A Corporation, called in Morocco “Société Anonyme” (SA): is a legal form of commercial company where the liability of the shareholders is limited to the amount of their shares. Management rules (distribution of dividends, appointment of directors, etc.) as well as its taxation are specific. The share capital of a SA cannot be less than three million dirhams if the company makes a public call for savings and three hundred thousand dirhams otherwise.

A Foreign representation office, that can be distinguished by either of the following entities:

  • A Branch: a branch in Morocco is an independent establishment that is part of a group. It has a certain autonomy of management and direction. The branch in Morocco is legally an emanation of the legal personality of its parent company. As a result, it can perform contracts entered into by the parent company and meet these obligations. Thus, a contract, for example, won by the parent company in its own name, can be executed by its branch, which is legally considered to be the same entity
  • A Subsidiary: a subsidiary is endowed with legal personality and contracts for its own name. The parent company and the subsidiary are two distinct structures. Its liability is limited to shareholding. Its financials are independent from the parent company, and the registration fees are proportional to the capital.

As a reliable partner created to serve foreign companies interested in Morocco, ARKAD Plus can be solicited to create your business entity in Morocco, either as a foreign national or as a foreign company. You may contact us at contact @ arkadplus.com for more information. 

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