Starting a business in Morocco can be an exciting venture for entrepreneurs looking to tap into a high-potential market. However, it’s crucial to understand the procedures and regulations before diving in. This guide will walk you through the main steps on how to create a business in Morocco, providing essential tips to help you along the way.
Why Start a Business in Morocco?
Morocco offers significant opportunities for industrial, commercial, artisanal, and service activities. Entrepreneurs can choose to operate as an individual or under an auto-entrepreneur regime with certain limitations or establish a company.
According to the World Bank’s Doing Business 2020 report, Morocco ranks third in Africa for ease of starting a business, thanks to its streamlined administrative procedures.
Steps to Create a Business in Morocco
1. Choose a Legal Structure
Selecting the appropriate legal structure is the first step in starting a business in Morocco. Common options include:
- Limited Liability Company (SARL)
- Public Limited Company (SA)
- Sole Proprietorship
- Simplified Joint-Stock Company (SAS)
Each structure has its benefits and is suitable for different types of businesses depending on their size, activities, and goals. For more details, you can read our article on the different business forms in Morocco.
2. Obtain a Negative Certificate
The negative certificate, issued by the Moroccan Office of Industrial and Commercial Property (OMPIC), confirms that your chosen company name is unique. This step helps avoid intellectual property disputes over the business name. It’s also advisable to protect other aspects of your intellectual property, such as trademarks and patents.
3. Choose a Registered Office Address
Your business must have a registered office address. This can be:
- A property owned by the company
- A rented commercial space
- A domiciliation arrangement, which is allowed for newly established companies
For more information on domiciliation, see our article on business domiciliation in Morocco.
4. Draft the Company Statutes
The company statutes outline the rules for managing and operating the business. They typically include:
- Company name
- Registered office address
- Business purpose
- Company duration
- Capital amount
- Number and value of shares
- Contributions of shareholders
- Management procedures (general meetings, decision-making)
- Rules for dissolution and liquidation
- Provisions for the transfer of shares
Clear and precise statutes help prevent future conflicts. Shareholders can amend the statutes by convening an extraordinary general meeting if necessary. In some cases, a shareholders’ agreement may also be required.
5. Register the Company’s Formation Documents
Registering the company’s formation documents with the tax authorities is a critical step. In Morocco, this process includes legalizing signatures at a local municipality and registering the documents online through a certified accountant. No documents can be submitted to the commercial court without registration.
6. Register for Professional Tax, Obtain a Tax ID, and Register with the Commercial Registry
- Professional Tax: New companies are exempt from professional tax for the first five years. However, you must obtain a professional tax ID number, which must appear on all company documents and be visibly displayed at public access points.
- Tax ID: Each company receives a unique tax ID for communication with the tax authorities. This ID appears on VAT and corporate tax returns.
- Commercial Registry: Registering with the commercial registry makes the company’s information public, including its name, managers, capital, and address.
7. Affiliate with the National Social Security Fund (CNSS)
Companies planning to hire employees must register with the CNSS, which manages social security and protection schemes in Morocco. This involves submitting legal documents about the company and opening an employer account on the DAMANCOM platform for social security declarations. CNSS collects contributions and provides benefits like pensions and health insurance.
8. Publish Notices in Legal Announcements and the Official Bulletin
Publishing legal notices in an approved newspaper and the Official Bulletin is mandatory. These notices inform the public about key details of the business, such as its name, purpose, registered office, and the names and contact information of its managers.
