Morocco is one of the regions in Africa that enjoys political and economic stability making the process of doing business easier and flexible. In the recent past, the business class has witnessed several commercial law amendments that have made the business environment friendlier and simple. The Moroccan commercial code was regarding the insolvency and bankruptcy was published in April 2018. Another recent improvement was done on the commercial leases which came in to effect in August 2016 and last one another amendment was done on the joint-stock companies. The most commonly used vehicle to carry out business in Morocco is the limited liability company (SARL). This is for the small-medium enterprises but for the investors willing and able to start larger business empires, the Public limited liability company (SA) is available in Morocco. In general, the government of Morocco has taken steps to make investment procedures to be simplified to attract more investors in the region.
Morocco has signed free trading agreements with leading economies of the world including the Arab countries and the European Union among others. One may think of the foreign restrictions and limitations of foreign investment in Morocco. There are no limitations regardless of the type of company. However, there are a few limitations in some sectors like agriculture and fisheries, banking in the insurance sector. Furthermore, there is no difference between a foreign-owned company and a locally owned company in the commercial legal system of Morocco. The ease of doing business has been made possible through government financing programs in Morocco. Investors stand a chance to receive grants to do business in the region including loans, financial guarantees, and taxation benefit treatment. However, the privileges will depend on the following;
Company Name Registration
In the first place, you have to come up with a unique name for the company; the name has to be outstanding. The outstanding name for your new company in Morocco should not be similar to an existing company and making sure that your preferred name of the company is registered and booked. You will be issued with a document to identify your intention to utilize the name so that no one else can use it again. That is the importance of the name recordation and certification which is done by the Moroccan industrial and commercial property office.
Moroccan Company Registration Documents
Before the registration of the name of the company, you will be required to present your identification documents like the national identity card or a passport with the fee that applies for the process with a letter of request. Lastly, you should also present a business plan. To complete your company registration, you will now be prompted to visit the Moroccan Tax department commonly known as the Regional Taxes Directorate not later than a month after presenting the company details to the registrar of companies. Take note, in the first process of registration, you will have been issued with a Lease or purchase deed which you will need to present it to the tax department for you to be issued with a Tax ID. After satisfactorily qualifying for the requirements of the taxation, you will be issued with a license for operation for the activities that you wish to perform in Morocco. Depending on your activities, you may need to hire services from locals, meaning you will be an employer with your company. You will then have to register your company with the (NFSS) National Fund for Social Security to be issued with their ID as an employer. Finally, visit the court in Morocco (any) to obtain a license for commercial purposes.
Formation of Limited Liability Company (SA) (LLC) in Morocco
This is the most common business setups in the region. It is common because of both international investors and local entrepreneurs for both small and medium enterprises in Morocco. As stated in the Companies Act of Morocco, you can establish it by listing a minimum of two (2) shareholders and one (1) director. The requirement for listing shareholders is limited to either a foreign national or a local and it can be a natural individual or an artificial person altogether.
The natural person, in this case, is an individual of sound mind and an Artificial person can be a going company or an existing operational corporate. As for the fees regarding paid-up capital for a common LLC in Morocco, you need to provide a minimum of $1000 but this is not a legal requirement in Morocco. If you are looking to invest big in Morocco, you are also accommodated by their business system. For large investors, the Public Limited Company (SA) is the recommended option. For this one, you will be required by law forming companies to provide;
A PLC in Morocco will demand a share capital of $30,000 which is a mandatory requirement for 25% to paid in the Moroccan Business setup while the remaining 75% to be paid within three years. If the PLC may in the future want to list the company in the Moroccan stock market, the required share capital at the formation stage is $300,000. These are not the only business formations in Morocco, there are others but this is the proceeds of the previous process of company formation. There is the option of the Morocco Liaison office and the Succursale.