Morocco (the capital of Rabat) is a country in the west of North Africa. The peculiarity of the jurisdiction lies in the unusual combination of Arab, Berber, and French cultures. The national currency is the Moroccan dirham (Dh). The official language is Arabic.
In 2016, Morocco’s economy was ranked as one of the most innovative in the world by the Bloomberg Innovation Index. Over the past ten years, the country’s economic development has increased significantly. Business registration in Morocco is of interest to many foreign investors and businessmen. This is also because the establishment of a company in Morocco is available to everyone, without residency requirements.
Taxation in Morocco
Personal income tax: the general rate is 38%
VAT: charged at 20%
Corporate income tax: depends on the amount of taxable income (1 USD = 9 MAD). 10% for the first 300,000 MAD, 20% in the range from 300,001 to 1 million, and 31% for over 1 million MAD. A 20% rate is also applied to the portion of taxable income in excess of AED 1 million for certain companies such as exporting companies, mining companies, etc.
Business tax: consists of a tax on the rental value of commercial premises and fixed assets. Rates range from 10% to 30% with a tax exemption for the first five years of operation.
Social Security Contributions: Employers’ contributions are as follows: family benefits 6.40%; social contributions 8.60%; professional tax 1.60%; compulsory medical care 4.11%.
Foreign Income: Income earned from activities carried out in a foreign country is not taxable in Morocco
Interest: Interest income earned from resident legal entities (other than financial institutions) is subject to withholding tax (WHT) at the rate of 20%
Capital Gains / Royalties: Taxed at the rates of ordinary business income.
Withholding Tax (WHT). Dividends: VAT’s standard dividend rate is set at 15%. Interest: income tax on interest paid to non-resident legal entities is set at 10%. Royalty: The tax rate is 10%.
It is possible to register a company in Morocco for a non-resident in the following forms:
- SARL (LLC) is a private limited liability company. The most common type of company among those wishing to start a business in Morocco. May include two or more members who are only responsible for the size of their share in the share capital of the company. Unlike a general partnership, members of a private limited company do not need to be registered traders.
- SA is a limited liability company. The liability of each shareholder is limited to the amount of equity that he owns. 25% of the registered capital must be contributed during the company registration process.
- Branch office – a branch or subsidiary of a foreign corporation. To register a branch in Morocco, you will need a legal representative of any residency. The size of the minimum authorized capital for the branch has not been determined.
- Having decided to register a company in Morocco, seek professional advice from the experienced staff of YB Case. We will provide you with advice and support at every stage.
Requirements for registering SARL (LLC) in Morocco
- The minimum number of directors is 1.
- The minimum number of shareholders is 2.
- There is no minimum share capital required for SARL. The standard authorized capital is $ 1000, 25% of which is paid at the foundation of the company.
- An annual tax return is required. There are no mandatory audit requirements.
- A legal address is required.
Requirements for SA registration in Morocco
- The minimum number of shareholders is 5.
- The minimum number of directors is 3.
- The minimum required capital is $ 30,000, 25% of which is paid upon the incorporation of the company.
- An annual tax return is required. There are no mandatory audit requirements.
- A legal address in Morocco is required.
- Company registration in Morocco will take approximately 6 weeks.
