Here’s a practical guide on the nuts and bolts of setting up shop in Morocco.
There are a few options for you to choose from when doing business in Morocco.
All the business structures listed above can be fully foreign-owned.
The typical length of time required for incorporation – from submission of documents to approval by the Ministry of Economy and Finance – is as follows.
No, there are no restrictions. You may appoint foreigners or even corporate bodies as directors of the board.
Yes, a company in Morocco can be wholly-owned by foreigners. There is no mandatory local shareholding requirement.
There are no restrictions on profit share as there is no mandatory local shareholding requirement.
Yes, you will need an approval from the Ministry of Economy and Finance before your company can operate.
There are generally no limitations on foreign investment, except in some specific business sectors such as agriculture, audio-visual, banking, fishery, and insurance.
It is not necessary. You can receive capital contribution in any of your company’s bank accounts.
It takes 4 weeks to open a corporate bank account.
No, you do not need to keep a minimum amount related to the share capital but your bank may require a minimum deposit in your account.
The corporate income tax (CIT) rates are progressive from 10% to 31%, depending on your taxable income. A higher CIT rate of 37% applies to credit institutions and insurance companies.
There are several tax incentives depending on your business activities and sectors you operate in. Find out more here.
Corporate tax is usually paid annually. The calendar year is normally the fiscal year, although you may also opt for a different fiscal year.
The withholding tax rates (based on the Singapore and Morocco tax treaty) are as follows:
Yes, the Singapore-Morocco Double Tax Avoidance Agreement (DTA) provides relief from double taxation in the situation where income is subject to tax for both countries.
Goods and services sold in Morocco and are delivered or consumed there are subject to value-added tax (VAT). The standard VAT is 20%. Lower rates may apply to specifically designated operations. Read more here.
You are required to register your Moroccan employees with Moroccan social security, Caisse National de Securite Sociale (CNSS), and expected to pay social security contributions based on your employee’s salary.
The rate of contributions can be about 6.7% of wages for employees, and up to 21% for employers. Some contributions are capped, but not all.
Yes, your employee must have a legal work permit to work in Morocco, and you must obtain an authorisation from the Ministry of Labour.13
No, you need not hire a specific number of Moroccan nationals.
No. If you do not wish to have a physical office in Morocco, you can work with a distribution partner or a franchisee from outside of Morocco. There is no specific law governing distribution agreements or franchising, and they are, therefore, subject to contract law.
Please note all information is based on online sources, and is provided in good faith for guidance and reference purposes only. It is accurate as of September 2019.