Types of Companies in Morocco

A big first step. Starting a business in Morocco means making a key decision early on: choosing the right legal structure. It shapes everything from how you pay taxes to how much risk you carry, and how your company is managed.

At wecount.ma, we help both local and foreign entrepreneurs understand their options clearly. With years of experience in Moroccan company formation, our team guides you through every step of the process.

This guide covers the four main types of companies in Morocco: SARL, SA, Branch, and Subsidiary. Each fits a specific goal. Whether you are launching a startup or expanding an international group, this will help you choose with confidence.

 

Overview of Company Types in Morocco

 

Morocco offers four primary legal structures:

1. SARL – Limited Liability Company
2. SA – Public Limited Company
3. Branch – Extension of a foreign company
4. Subsidiary – Legally independent Moroccan entity

Each one has different legal and tax obligations, benefits, and levels of flexibility.

Your decision should depend on the nature of your business, capital structure, ownership, and long-term plans. Understanding these options early is essential for building a legally sound and efficient operation.

 

Choosing the Right Legal Structure

 

Before registration, you must choose the structure that best matches your business. This choice affects:

• Shareholder liability
• Required capital
• Tax exposure
• Internal control and governance

For small and medium-sized companies, SARL is usually the easiest and most practical. For larger or more regulated ventures, SA might be required.

Foreign companies looking to operate in Morocco also need to decide between opening a Branch or forming a Subsidiary.

A structured decision process helps. Evaluate:

1. Business activity and risk
2. Number of shareholders
3. Capital available
4. Whether control should remain abroad or locally

 

Local vs. Foreign-Owned Companies

 

In Morocco, foreign and local entrepreneurs can choose from the same company types. But the process for foreign-owned entities includes a few extra steps.

Key differences:

Aspect	Foreign-Owned	Locally-Owned
Formation Steps	Additional documentation and Office des Changes registration	Standard procedures
Legal Status of Branch	Not independent (part of parent)	Not applicable
Subsidiary Treatment	Legally a Moroccan company	Same
Sectoral Limits	Certain sectors may restrict foreign ownership	Fewer restrictions

At wecount.ma, we guide investors through these distinctions to ensure compliance and avoid unnecessary delays.

 

SARL – Limited Liability Company

 

SARL is the most popular company type in Morocco, especially for small to medium-sized businesses. It offers flexibility, low startup costs, and limited financial risk.

 

What Is an SARL?

 

An SARL protects shareholders’ personal assets by limiting liability to their contributions. It can have:

• 1 shareholder (SARL à associé unique)
• Up to 50 partners

It is a private structure. Public share issuance is not allowed.

 

Key Features of an SARL

 

Feature	Detail
Shareholders	1 to 50
Minimum Capital	No legal minimum, but often 10,000 MAD
Liability	Limited to capital contribution
Management	One or more managers (gérants)
Share Transfers	Approval from 75% of partners required

SARLs must register with the Trade Register and comply with Moroccan accounting rules.

 

When to Choose an SARL

 

Consider SARL if:

1. You want to limit personal liability
2. You are starting with low or medium capital
3. You do not plan to raise money from public investors
4. You want a structure with fewer formalities

This model suits service providers, retailers, tech companies, and professionals.

 

Advantages and Limitations

 

Advantages:

• Fast formation
• Personal asset protection
• Minimal capital needed
• Simple structure
• Suitable for individuals and teams

Limitations:

• No public fundraising
• Share transfers restricted
• Limited to 50 shareholders
• Must follow standard accounting procedures

At wecount.ma, we help clients form SARLs efficiently, managing the full process from legal documents to tax registration.

 

SA – Public Limited Company

 

SA is more formal and powerful. It suits companies with high capital, complex ownership, or plans to raise public funds.

 

What Is an SA?

 

An SA has share capital divided among shareholders, each with liability limited to their stake. Unlike SARL, SA allows public share offerings and listing on a stock exchange.

It is common in industries like banking, telecom, and manufacturing.

 

Requirements for Forming an SA

 

Requirement	Minimum
Shareholders	5 (public SA) or 1 (private SA)
Capital	300,000 MAD (private), 3,000,000 MAD (public)
Governance	Board of Directors or dual-board system
Auditor	Mandatory
Legal Formalities	Notarised statutes + court filing

Due to its complexity, professional support is strongly recommended.

 

Best Use Cases for an SA

 

1. Businesses in regulated sectors
2. Companies raising external investment
3. Projects with multiple shareholders
4. Businesses with long-term capital needs
5. Firms with global or regional expansion goals

 

Pros and Cons

 

Pros:

• Eligible for public investment
• High transparency
• Strong governance
• Suitable for complex businesses
• Can list on stock exchanges

Cons:

• High capital requirements
• More reporting obligations
• Slower formation process
• Requires statutory auditor

Our team at wecount.ma helps entrepreneurs and corporates form SAs and stay compliant from day one.

 

Branch of a Foreign Company

 

A branch allows a foreign company to operate in Morocco without forming a new legal entity.

 

What Is a Branch?

 

A branch is an extension of a foreign company. It is not independent, and the parent company bears all legal and financial responsibility.

To operate legally, the branch must:

• Register with the Trade Register
• Obtain a fiscal ID
• Open local bank accounts
• Comply with labor and accounting laws

 

Legal Status and Taxation

 

Factor	Branch Status
Legal Entity	Not independent
Liability	Full responsibility of parent company
Taxation	Taxed on Moroccan profits
VAT Registration	Required for taxable goods/services
Profit Repatriation	Allowed, may be taxed depending on treaties

 

Pros and Drawbacks for Foreign Businesses

 

Pros:

• Fast setup
• Lower cost
• Full control remains abroad
• Familiar brand presence
• Suitable for temporary or test operations

Drawbacks:

• No legal independence
• Full liability on parent company
• Limited flexibility in operations
• Not ideal for raising capital or local partnerships

At wecount.ma, we help foreign investors launch Moroccan branches efficiently while staying compliant with tax and legal standards.

 

Subsidiary Company in Morocco

 

A subsidiary is a separate legal entity under Moroccan law, even if owned entirely by a foreign company.

It provides full legal independence and is ideal for long-term investment.

 

Difference Between Subsidiary and Branch

 

Aspect	Branch	Subsidiary
Legal Status	Part of foreign company	Fully Moroccan company
Liability	On parent company	On subsidiary only
Operations	Limited autonomy	Independent decision-making

 

Full Legal Independence

 

A subsidiary can be formed as SARL or SA. Once registered, it has:

• Local tax ID and trade registration
• Own bank accounts and contracts
• Separate payroll and accounting
• Distinct financial obligations

This makes it ideal for companies seeking credibility and flexibility in Morocco.

 

Common Use for Expansion

 

1. Exporters building production or logistics hubs
2. Companies seeking access to trade zones
3. Firms requiring local hiring and operations
4. Long-term foreign investments

At wecount.ma, we guide clients through the complete subsidiary setup—from legal formation to local tax registrations.

 

Comparison Table: SARL vs SA vs Branch vs Subsidiary

 

Structure	Capital Requirement	Liability	Management System
SARL	From 1 MAD (often 10,000)	Limited to contribution	One or more managers (gérants)
SA	300,000 to 3,000,000 MAD	Limited to contribution	Board or dual-board
Branch	No minimum	Parent company is liable	Local representative
Subsidiary	Based on SARL or SA rules	Limited to local capital	Independent structure

 

 

Structure	Taxation	Legal Independence	Accounting Obligations
SARL	Moroccan corporate tax	Yes	Moroccan accounting standards
SA	Moroccan corporate tax	Yes	Mandatory audit
Branch	Taxed on local profit	No	File Moroccan taxes separately
Subsidiary	Full local tax	Yes	Full Moroccan accounting rules

 

 

How to Choose the Best Company Type

 

Choosing the right type is more than a technical step. It can affect your costs, tax planning, partnerships, and long-term vision.

At wecount.ma, we help entrepreneurs make that choice with a strategic mindset.

 

Based on Business Size and Sector

 

1. SMEs: SARL is ideal. Affordable, practical, and safe.
2. Large Companies: SA supports regulated operations and investment rounds.
3. Testing the Market: A Branch offers speed with lower cost.
4. Full Expansion: Subsidiary is the best choice for long-term control.

 

Based on Shareholders and Goals

 

1. Solo Projects: SARL or SARL à associé unique works well.
2. Multiple Investors: SA provides structure for complex ownership.
3. Foreign Control: Subsidiary offers legal separation, Branch is quicker.
4. Public Fundraising: Only SA permits share issuance and IPOs.

Our advisors can review your situation and recommend the best structure for your plans.

 

Need Help Choosing the Right Structure?

 

This decision is strategic. It affects your business every step of the way.

At wecount.ma, we offer expert guidance with no obligation.

 

We Provide Free Consultation for Foreigners and Locals

 

We make things simple:

• One-on-one guidance
• Straightforward explanations
• Full administrative support

Whether you are debating between SARL and SA, or trying to decide between a Branch and a Subsidiary, we are here to help.

 

Contact Our Experts at Wecount.ma

 

If you are ready to move forward, our team is ready to assist.

Visit wecount.ma to speak with our company formation specialists. We reply fast, advise clearly, and handle the full process for you—from legal forms to tax registrations.

Let us take care of the complexity. You focus on building your business.