The different forms of companies in Morocco

When it comes to starting a business in Morocco, choosing the right legal structure for your project is a crucial step. The Moroccan legal framework offers several forms of company, each with its own characteristics, advantages and disadvantages.

This article aims to clarify these different corporate forms and provide practical advice for Moroccan entrepreneurs.

The SARL is one of the most common corporate structures in Morocco. It is ideally suited to small and medium-sized enterprises (SMEs), thanks to its flexibility and the fact that partners’ liability is limited to their contributions. A SARL may be formed by one or more partners, and the minimum share capital is freely determined by the articles of association.

Case in point: Sabrina and Benjamin want to launch a graphic design business. By opting for a SARL, they benefit from liability limited to their contributions, and simplified management adapted to the size of their business. For more advice on setting up a company, consult our services.

The SA is ideal for large companies requiring substantial capital. It requires a minimum of five shareholders and a minimum share capital of 300,000 dirhams if it does not go public, or 3,000,000 dirhams if it does. The SA offers greater fund-raising capacity and a more formal governance structure.

Case in point: Karim’s pharmaceuticals distribution business is looking to raise substantial funds to expand. By opting for an SA, he can attract investors and benefit from a structure suited to large-scale projects.

The SNC is a form of company in which the partners have unlimited joint and several liability. It is generally chosen by partners with a high level of mutual trust. Each partner is liable for the company’s debts to the full extent of his or her assets.

Case in point: Brothers Amine and Youssef, both lawyers, decide to set up an SNC for their law firm. This structure enables them to manage their company with complete transparency and mutual trust.

The SCS distinguishes between two types of partners: general partners, who have unlimited liability, and limited partners, whose liability is limited to their contributions. This form of company is useful for those who want to join forces without exposing their personal assets.

Case in point: Sara, an investor, and Karim, a project manager, form an SCS. Sara invests without getting involved in day-to-day management, while Karim manages the business with greater responsibility.

• Consult an expert: Calling on the services of a chartered accountant can help you navigate the complexities of the different corporate forms and choose the one that best meets your objectives.
• Consult an expert: Calling on the services of a chartered accountant can help you navigate the complexities of the different corporate forms and choose the one that best meets your objectives.
• Adapt to legislative changes: Keep abreast of legislative changes and new regulatory requirements to ensure your company’s compliance.

Choosing the legal form of your company is a strategic decision that will have a significant impact on its operation and development.

Whether you opt for a SARL, SA, SNC or SCS, it’s essential to understand the implications of each structure. By taking into account the specific features of the Moroccan market and the latest legislative developments, you can position your company for success.

For personalized advice and support in all your legal and tax matters in Morocco, don’t hesitate to contact Efficience, your trusted partner.