hanae belsakri
Writing By Hanane Belaskri

19.12.2021 | Bh Adviser | Morocco

Ease of Doing Business in Morocco 2022

Since 2004, BH ADVISER has assisted our Clients with registering their commercial enterprise in Morocco :

Compare various Moroccan entities LLC Quick setup solutions Free zone company Holding company PLC Representative office Branch office
SARL
SARL
Free zone company
SA
Liaison Office
Branch office
Succursale
Best use of company?
All products/ svcs
Close client deal now
Manuf/ export trading
Offshore investment holding
To get pub. funding
Marketing/ research
Specific projects
How soon to invoice Clients?
2 months
6 weeks
2 months
2 months
2 months
Cannot trade
2 months
How soon can you hire staff?
3 months
8 weeks
3 months
3 months
3 months
3 months
3 months
How soon can you sign a lease agreement?
Immediately
Immediately
Immediately
Immediately
Immediately
Immediately
Immediately
How long to supply corporate bank a/c?
2 months
6 weeks
2 months
2 months
2 months
2 months
2 months
How long to supply co. reg/tax numbers?
2 months
4 weeks
2 months
2 months
2 months
2 months
2 months
Corporate tax rate on annual business profits?
10% to 31%
10% to 31%
20%
US$500
10% to 31%
Can not trade
10% to 31%
Limited liability entity?
Yes
Yes
Yes
Yes
Yes
No
No
Govt grants available?
yes
yes
yes
yes
yes
No
yes
Res. director/partner/ legal rep. required?
No
No
Yes
No
No
Yes
Yes
Min. paid-up share capital? (USD)
1
1
1
1
30,000
None
None
Corporate bank account location?
Can secure trade finance?
Yes
Yes
Yes
Yes
Yes
No
Yes
VAT payable on sales to local customers?
20%
20%
Up to 20%
None
20%
No sales allowed
20%
Average total business set up costs?
US$ 1.500
Inquire a proposal
US$ 1.500
Inquire a proposal
US$ 3.000
US$ 1.500
US$ 1.500
Average total engagement period?
2 months
2 months
2 months
2 months
2 months
2 months
2 months
Accounting and tax considerations LLC Quick setup solutions Free zone company Holding company PLC Representative office Branch office
Corporate tax rate on annual company profits?
10% to 31%
10% to 31%
10% to 31%
US$500
10% to 31%
Can not trade
10% to 31%
Legally exempt from tax if correctly structured?
No
No
No
No
No
Can not trade
No
Tax incentives for group HQs ?
Yes
Yes
Yes
Yes
Yes
No
Yes
Need to file an annual tax return?
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Does it need to file annual financial statements?
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Should it appoint an auditor?
No
No
No
No
No
No
No
Access to double taxation agreements?
Yes
Yes
Yes
Yes
Yes
No
Yes
WH tax on payments to foreign s/holders?
15%
15%
15%
No
15%
No
15%
Company Registration LLC Quick setup solutions Free zone company Holding company PLC Representative office Branch office
Director of cabinet/partner/legal representative required?
No
No
Yes
No
No
Yes
Yes
Minimum number of shareholders/partners?
1
2
2
2
5
Parent company
Parent company
Minimum number of directors/managers?
1
1
1
1
3
1
1
Minimum share capital paid up by law?
US$1
US$1
US$1
US$1
US$30,000
None
None
Is it time to form a new entity?
2months
4 weeks
2 months
2 months
2 months
2 months
2 months
Can it be easily converted into a PLC?
Yes
Yes
Yes
Yes
N/A
No
No
Can have preferred shareholders/partners?
Yes
Yes
Yes
Yes
Yes
No
No
Business Considerations LLC Quick setup solutions Free zone company Holding company PLC Representative office Branch office
Good entity for trademark registration?
Yes
Yes
Yes
Yes
Yes
Yes
No
Can obtain an import and export licence?
Yes
Yes
Yes
No
Yes
No
Yes
Minimum number of directors/managers?
1
1
1
1
3
1
1
Sponsorship by a local citizen required?
No
Our client has to go to Morocco?
No
Backup companies available?
No
Are temporary physical office solutions available?
Yes
Do you need a local resident as a bank signatory?
No
Can it be wholly owned by foreigners?
Yes
The entity will probably be regulated by ?
Regional Investment Center
Monthly VAT return to the government ?
Yes
Public register of shareholders and directors ?
Yes
Government approval is required for foreign owners?
Yes
Signing an office lease during incorporation?
Yes
Owner/administrator documents certified/translated?
Yes
Can they bid for government contracts?
yes
Does the foreign director need a personal tax identification number?
No
Does a non-resident foreign director need a residence visa?
No
Maximum number of employees allowed?
No maximum number for any entity
Ratio of expatriate to local staff?
None
Residence visa for the business owner?
Yes
Banking issues
Multi-currency bank accounts available ?
No
Corporate visa debit cards available?
Yes
Quality of the online banking platform?
Low
Is participatory financing available in this country?
Yes
BHADVISER - Tax and legal consulting firm in Casablanca, Morocco

BH ADVISER

BH ADVISER - Accounting | Management | Consulting | Leader In Global Business Expansion

Further useful information
What will my customer's sales invoice include?
Has Morocco signed any free trade agreements?
Yes
Morocco is a member of WIPO/TRIPS?
Yes
Is Morocco a member of ICSID ?
Yes
Average tariffs incurred?
17%
Government approval of foreign investment is required?
Yes
Maximum participation of foreigners?
100%
Average monthly office rent ? (USD/m²)
14
Legal minimum monthly salary?
US$310
Average wage in US$ for qualified local staff?
2,270
Is the security deposit retained by the government?
No
Interest rate on USD deposits ? (1 year average)
2.25%
Currency control of remittances abroad?
Yes

Register A Company In Morocco As Foreigner

Advantages of Morocco agency registration

Morocco business enterprise formation best calls for a minimal capital of US$1,000 (MAD10,000) of which an exceptional 25% have to be paid up earlier than incorporation. The company can be formed through one shareholder, who may be a foreigner. There isn't always any need for a resident director,Registering a commercial enterprise business enterprise in Morocco is easy for a foreigner because of the reality:

  • Contrary to many different Northern African and Middle Eastern countries which include( Algeria, Libya, Saudi Arabia, and the United Arab Emirates), foreigners aren't required to form a joint task at the way to do business enterprise in Morocco.
  • Foreigners aren't a state of affairs to higher capital requirements than locals in maximum industries.
  • While agency registered with the Moroccan Business Registrar is gradual in assessment to advanced countries like ( New Zealand, France, Singapore, or Hong Kong), it's far even though a lousy lot quicker than distinctive Northern African nations.
  • For the reasons indexed above, Morocco is presently ranked with the aid of the usage of using the World Bank because of the 43 fantastic region in the global for the gain of beginning an agency, earlier than (us (55), Italy (98), or Switzerland (80 one).

While the standard enterprise organization income tax rate is excessive (31%), foreigners beginning an enterprise in Morocco can revel in the following tax blessings:

  • Companies going for walks in a loose trade region in Morocco advantage from a tax excursion of 5 years. Thereafter, they enjoy a discounted tax price of 8.Seventy five% for the subsequent twenty years.
  • Foreigners beginning a close-by organization in Morocco also can relax “Casablanca Finance City” reputation, which allows them to gain to:
  • Foreigners beginning a close-by organization in Morocco also can relax “Casablanca Finance City” reputation, which allows them to gain as many as 5 years of corporate tax vacations and a very decreased CIT charge of 20%.
  • Eligible activities encompass investment maintaining monetary offerings and HR, crook, audit, and specific professional offerings.
  • Morocco has entered into a minimum of 50 double taxation avoidance treaties with precise nations together with (Singapore, Switzerland, United States , United Kingdom, Canada, Germany, the United Arab Emirates), among many distinctive jurisdictions.

Many different industries advantage from tax benefits, which include :

  • Agriculture, which can be permanently tax-exempt.
  • lodging and tourism, which gain from a 5-12 months tax holidays determined via a completely reduced fee of 20%. Read the spend money on Morocco internet image for the entire listing of tax exemptions to be had in Morocco.

Morocco is a brilliant place to start a name middle, a farm, and precise businesses requiring manpower due to the fact:

  • The not unusual earnings of a Moroccan worker are extremely good €450 (MAD5,000) in line with the month within the personal zone. The minimal sales are best €225 every month.
  • It is simple to find people in Morocco, due to an unemployment rate formally at 10% and lots better because of continual unemployment, notably the various younger metropolis generations.
  • The huge majority of the metropolis knowledgeable employees is fluent in French and frequently moreover speaks English.
  • Employers in need of reducing payroll expenses are often allowed to carry out that. Morocco is ranked due to the fact the thirty-eighth top-notch place inside the world for the strength of wages via way of the World Economic Forum.

Casablanca-Settat is an extremely good region and is known as the financial locomotive of Morocco in addition to the organization hub of Africa.

The jurisdiction offers the benefits of the one to the companies:

  • It proves to be a splendid vacation spot for tourism companies because of the reality it is the 1/three largest tourist tour spot in Morocco and gives top-notch history and shape, international-magnificence golfing guides, museums and kasbahs,and leisure and amusement offerings to its multinational travelers.
  • Casablanca is the headquarter of all essential, stock exchanges, banking and economic establishments, coverage organizations and, national and international institutions of Morocco.
  • The port of Casablanca is the maximum critical part of Morocco which facilitates, commercial enterprise port, fishing port, a marina, and infrastructure for launching and dry-docking of delivery bins.

Disadvantages of Morocco company registration

  • While there are many approaches to legally reduce corporate tax, the same old charge is high: 31%. Companies issue to CIT are moreover difficult to a minimum tax similar to 0.5% in their turnover. Morocco also implements withholding tax on dividends distributions and branch remittances, at a general price of 15%.
  • It is almost not possible to open a corporate financial institution account in Morocco without registering a permanent status quo like a branch or a subsidiary. Additionally, there is a seventy-five% possibility that a financial institution officer will request a financial institution signatory to tour for a one-hour bank interview.
  • Arabic and French are the 2 reputable languages for engaging in enterprise in Morocco. Also, Spanish is widely spoken within the northern Moroccan regions inclusive of Nador and Al Hoceima. All authority documentation in Morocco is required to be in Arabic. Additionally, all commercial enterprise brochures and associated files ought to be supplied in French. As a result, all marketers who are non-speakers of Arabic, French or Spanish are required to source nearby distributors and marketers to engage and conduct business in Morocco and , comply with the nearby standards and rules of the united states of America.

  • Gateway to North Africa: A quick distance from Spain and with a large French-talking populace, Morocco is a herbal first preference for European organizations increasing into North Africa and seeking out a rustic with an appealing keeping commercial enterprise company regime for their nearby headquarters.
  • Labor massive offerings and manufacturing: Many European companies, notably for France and certainly one of a type French speak international locations, relocate to Morocco their name facilities, garments factories, and one-of-a-kind manpower extensive manufacturing sports activities.

BH ADVISER
Contact us

For more information on company registration services in morocco, feel free to contact BH ADVISER.

Open chat
Contact us today!
Contact us now to find out how we can help you create your dream business n Morocco!