Setting up a company and doing business in Morocco

Doing Business in Morocco

• Moroccan company registration services
• Government licensing services
• Corporate bank account opening services in Morocco and abroad
• Employee recruitment and Moroccan work visa services
• Moroccan office rental solutions are available.

Advantages of Setting Up a Company in Morocco

Opening a company in Morocco requires a capital of only a minimum of US$1,000 (10,000 MAD), of which only 25% needs to be paid before incorporation. The company can be established by one shareholder, who can be a foreigner. There is no need for a resident director.

Unlike many other North African and Middle Eastern countries, including Algeria, Libya, Saudi Arabia, and the United Arab Emirates, foreigners do not need to form a joint venture to do business in Morocco.

In most sectors, foreigners are not subject to higher capital requirements than locals.

While Moroccan company registration for a commercial business is slow compared to developed countries like New Zealand, France, Singapore, or Hong Kong, it is still much faster than in other North African countries.

For the reasons listed above, Morocco is currently ranked by the World Bank ahead of the United States, Italy, and Switzerland in terms of ease of starting a business.

Although the standard corporate tax rate is high (30%), foreigners setting up a business in Morocco can benefit from the following tax advantages.

• Companies operating in a free trade zone in Morocco enjoy a five-year tax exemption. Thereafter, they benefit from a reduced tax rate of 8.75% for the following twenty years.

Foreigners setting up a local company in Morocco can also secure “Casablanca Finance City” status, which allows them to benefit from i) corporate tax exemptions for up to five years and ii) a permanently reduced CIT rate of 10%. Eligible activities include investment holding, financial services, and HR, legal, audit, and other professional services.

Morocco has signed at least 50 double taxation avoidance agreements with different countries, including Singapore, Switzerland, the United States, the United Kingdom, Canada, Germany, and the United Arab Emirates, among many other jurisdictions.

Many other sectors benefit from tax advantages, including agriculture, which can be permanently tax-exempt, and hospitality and tourism, which benefit from a five-year tax holiday and then a permanently reduced rate of 17.5%.

Morocco is a great place to start a call center, farm, and other businesses that require manpower.

The average salary of a Moroccan worker in the private sector is only around €450 (5,000 MAD) per month. The minimum salary is only €225 per month.

It is easy to find workers in Morocco due to the official unemployment rate of 10%, which is actually much higher due to chronic unemployment, especially among the urban youth generations.

The vast majority of the urban educated workforce speaks French fluently and often speaks English as well.

Employers who need to reduce payroll costs are generally allowed to do so.

Casablanca-Settat is an excellent region and is known as Morocco's economic locomotive as well as Africa's business hub.

Advantages of Setting Up Companies in Morocco

Morocco's greatest

• Being a Tourist Destination and Offering
• Excellent Heritage and Architecture
• First-Class Golf Courses
• Museums and Kasbahs
• Has Entertainment and Leisure Services for Multinational Tourists.

Casablanca is the center of all major stock exchanges

• Banking and financial institutions
• Insurance companies
• Morocco's national and international institutions

The port of Casablanca is the largest port in Morocco, with a

• Commercial port
• Fishing port
• Marina
• Infrastructure for launching and pooling shipping containers.

Morocco's Tax System

Although there are many ways to legally minimize corporate tax, the standard rate is high.

30%. Companies subject to CIT are also subject to a minimum tax corresponding to 0.5% of their turnover. Morocco also applies a withholding tax on dividend distributions and branch remittances at a standard rate of 15%.

It is almost impossible to open a corporate bank account in Morocco without registering a permanent establishment, such as a branch or a subsidiary. Additionally, there is a 75% chance that a bank officer will request the bank signatory to travel for a one-hour bank interview.

Arabic and French are the two official languages of doing business in Morocco. In addition, Spanish is widely spoken in regions in northern Morocco such as Nador and Al Hoceima. All government documents in Morocco are required to be in Arabic. Furthermore, all commercial brochures and related documents must be presented in French.