Limited Liability Company (SARL)
Société à Responsabilité Limitée
Company formation in Morocco
The SARL is best suited for: Small and medium businesses entering the Moroccan market, Foreign entrepreneurs and startups seeking a straightforward structure, Service companies, consultancies, and tech firms, Solo founders (single-shareholder SARL-AU is permitted). Morocco applies progressive corporate tax rates: 20% on net profits up to MAD 100 million, and 35% on profits above MAD 100 million. A minimum contribution (cotisation minimale) of 0.4–0.75% of turnover applies even if the company is loss-making. VAT is 20% standard rate, with reduced rates of 7%, 10%, and 14% for specific goods and services. Withholding tax of 15% on dividends paid to non-residents (reducible under treaties). Companies registered in Casablanca Finance City (CFC) benefit from a 15% reduced corporate tax rate and exemptions on foreign-sourced income for the first 5 years. Morocco has 60 double tax treaties.
- Small and medium businesses entering the Moroccan market
- Foreign entrepreneurs and startups seeking a straightforward structure
- Service companies, consultancies, and tech firms
- Solo founders (single-shareholder SARL-AU is permitted)
Key Facts
Step-by-Step Formation Process
Obtain a Negative Certificate (Certificat Négatif)
Apply to the Moroccan Office of Industrial and Commercial Property (OMPIC) for a Negative Certificate confirming that the proposed company name is unique and available. This can be done online through the OMPIC portal.
Draft and sign the Articles of Association (Statuts)
Prepare the Articles of Association (Statuts) in French or Arabic, specifying shareholders, capital, management, and business activities. The statuts must be signed by all shareholders and legalised by the relevant authorities.
Deposit the share capital at a Moroccan bank
Open a blocked account at a Moroccan bank and deposit at least 25% of the MAD 10,000 minimum capital. The bank issues a capital deposit certificate (attestation de blocage). Remaining capital must be paid within 5 years.
Register with the Regional Investment Centre (CRI)
Submit the full application through the Regional Investment Centre (Centre Régional d'Investissement — CRI), which acts as a one-stop shop. CRI coordinates with the Commercial Court, Tax Authority, and CNSS (social security). The company is registered on the Commercial Register (Registre du Commerce).
Obtain the tax identification and VAT registration
Register with the Direction Générale des Impôts (DGI) for corporate tax and VAT. Obtain the Identifiant Fiscal (tax ID) and Identifiant Commun de l'Entreprise (ICE — the unique business identifier). Register with CNSS for social security contributions.
Required Documents
- Passport copies of all shareholders and managers (gérants)
- Proof of residential address for each shareholder
- Negative Certificate from OMPIC
- Signed Articles of Association (French or Arabic)
- Capital deposit certificate from a Moroccan bank
- Registered office lease agreement (contrat de bail)
- Power of Attorney if applying through a representative (legalised)
- Declaration of conformity (Déclaration de Conformité)
Cost Overview
Tax Treatment
Morocco applies progressive corporate tax rates: 20% on net profits up to MAD 100 million, and 35% on profits above MAD 100 million. A minimum contribution (cotisation minimale) of 0.4–0.75% of turnover applies even if the company is loss-making. VAT is 20% standard rate, with reduced rates of 7%, 10%, and 14% for specific goods and services. Withholding tax of 15% on dividends paid to non-residents (reducible under treaties). Companies registered in Casablanca Finance City (CFC) benefit from a 15% reduced corporate tax rate and exemptions on foreign-sourced income for the first 5 years. Morocco has 60 double tax treaties.
Pros & Cons
- Single-shareholder SARL (SARL-AU) is permitted — ideal for solo founders
- Low minimum capital of MAD 10,000 with only 25% required upfront
- 100% foreign ownership in most sectors without needing a local partner
- Strategic gateway to both Europe (14 km from Spain) and Africa
- CRI one-stop shop simplifies the incorporation process
- Well-developed infrastructure — Tangier Med is Africa's largest port
- Casablanca Finance City (CFC) offers 15% preferential tax rate for qualifying companies
- Progressive corporate tax rates: 20% up to MAD 100M, 35% above — can be costly for larger operations
- 20% VAT is high by regional standards
- Bureaucracy can be slow despite CRI reforms — French-influenced administrative culture
- Foreign exchange controls require Central Bank (BAM) approval for profit repatriation above certain thresholds
- French language dominance in business and legal documents adds complexity for non-French speakers
- Labour law is protective of employees — termination is complex and costly
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.