Can a foreigner own 100% of a company in Morocco?
Yes. Morocco allows foreign individuals and companies to own 100% of a Moroccan company in most sectors, with no local partner required. A handful of activities are regulated (banking, insurance, some transport and agricultural land), but a trading, services or industrial company can be wholly foreign-owned and registered on the same terms as a Moroccan one.
The practical question is less ownership than structure. A foreign group can create a Moroccan subsidiary, open a branch (succursale) of its foreign company, or start with a lighter presence. The right choice depends on liability, tax and how quickly the business will invoice locally. Our Morocco market page covers why companies choose the country; this guide covers how to set up.
Which legal form should a foreign investor choose in Morocco?
Most foreign investors choose an SARL (société à responsabilité limitée) for a first Moroccan entity. The SARL has had no legal minimum capital since Law 24-10 of 2011, limits each partner's liability to their contribution, and can have a single partner (SARL AU). An SA suits large or listed projects; an SAS suits projects with investors and tailored governance.
| Form | Minimum capital | Partners | Best suited to |
|---|---|---|---|
| SARL / SARL AU | None set by law (Law 24-10, 2011) | 1 or more | Subsidiaries, SMEs, first entity |
| SA | 300,000 MAD (3 million MAD if public offering) | At least 5 | Large projects, regulated sectors, future listing |
| SAS / SASU | None (Law 19-20, 2021) | 1 or more | Investor-backed projects, joint ventures, flexible governance |
| Branch (succursale) | No capital of its own | Foreign parent | Testing the market under the parent's name |
A branch has no separate legal personality, so the foreign parent is liable for its debts. A branch registers on the Moroccan trade register, pays corporate tax on its Moroccan profits, and profits sent to the parent bear the same withholding tax as dividends. A branch is quick to open but exposes the parent; a subsidiary ring-fences the risk.
What are the steps to register a company in Morocco?
Registering a company in Morocco follows eight steps, from reserving the name with OMPIC to affiliating with the CNSS, the social security fund. Since Law 88-17 on electronic company creation, most of these steps run through one online platform, DirectEntreprise, which links OMPIC, the commercial courts, the tax administration (DGI), the official printer and the CNSS.
- Negative certificate (certificat négatif): reserve the company name with OMPIC. The fee is 230 MAD and an available name is usually confirmed within 24 to 48 hours.
- Articles of association (statuts): draft and sign them, with the capital, the partners and the manager.
- Capital deposit: pay the capital into a blocked account at a Moroccan bank and obtain the bank's certificate.
- Registration of the articles with the DGI. Incorporations paid in cash have been exempt from registration duties since 2018.
- Taxe professionnelle, tax ID (IF) and ICE, the company's single identifier used on every invoice.
- Trade register (RC) at the registry of the commercial court.
- Legal notice in a journal of legal announcements and in the Bulletin Officiel.
- CNSS affiliation before hiring the first employee.
DirectEntreprise was piloted in Rabat and rolled out nationwide in March 2025. The Regional Investment Centres (CRI) remain the investor's point of contact in each region and help with files, incentives and land, but the filing itself is now electronic.
How long does it take to set up a company in Morocco?
Setting up a company in Morocco takes about two to three weeks end to end for a foreign investor. OMPIC reported in May 2026 an average of three days to process a complete file filed online, sometimes under 24 hours. The rest of the time goes to drafting the articles, opening the bank account and obtaining documents from abroad.
Two things slow foreign shareholders down most often. First, documents issued abroad (the parent's extract, the passport, powers of attorney) must be apostilled or legalised, and translated where needed. Second, Moroccan banks carry out full know-your-customer checks on foreign shareholders before they open the capital account. Preparing both before the trip saves a week or more.
How much does it cost to set up a company in Morocco?
The official cost of setting up a company in Morocco is low, because the largest historical charge, registration duty on capital, no longer applies to cash contributions. Since the 2018 Finance Law, incorporating with cash and capitalising shareholder current accounts are exempt. The capital itself is not a cost: it stays in the company and is released once registration is complete.
- Negative certificate: 230 MAD.
- Registration duties: exempt for cash contributions; contributions in kind follow their own rules.
- Taxe professionnelle: new businesses are exempt for their first five years.
- Minimum contribution (cotisation minimale, 0.25% of turnover): new companies are exempt for their first 36 months.
- Other costs: trade-register and publication fees, the legal notice, and professional fees for drafting and filing, which vary with the structure.
Our company setup service quotes a fixed fee once the structure is chosen, so the total is known before work starts.
What taxes does a company pay in Morocco in 2026?
A Moroccan company pays corporate income tax (IS) at 20% on net profit below 100 million MAD and 35% at or above it in 2026, the end of the rate convergence set by the 2023 Finance Law. Banks and insurers pay 40%. VAT is 20% at the standard rate, 10% at the reduced rate, and exports are zero-rated.
| Tax | Rate in 2026 | Note |
|---|---|---|
| Corporate tax (IS) | 20% / 35% | 35% from 100 million MAD of net profit; 40% for banks and insurers |
| VAT | 20% standard | 10% reduced rate; exports at 0% |
| Dividend withholding tax | 11.25% | Falls to 10% from 2027; tax treaties can lower it |
| Social solidarity contribution | 1.5% to 5% | On profits of 1 million MAD or more, extended to 2028 |
| Minimum contribution | 0.25% of turnover | New companies exempt for 36 months |
The 2026 Finance Law also introduced, from 1 July 2026, a 5% withholding on rents paid to companies and VAT withholding on services bought by large companies. Investors from countries with a tax treaty with Morocco may pay less dividend withholding: the treaty with the United Arab Emirates, for example, sets 5% or 10%. Our Gulf investors guide covers those treaties.
Can profits and capital be repatriated from Morocco?
Yes. Under the Moroccan foreign-exchange rules, a foreign investment financed in foreign currency is guaranteed free transfer of its dividends and of the proceeds of a sale or liquidation, including capital gains, net of Moroccan tax. No prior authorisation is needed: the company's bank executes the transfer, and the Office des Changes checks afterwards.
The condition is the funding route. Capital must come from abroad in convertible currency, and the bank's records of that inflow are the investor's proof. Keep them: they are what makes the later transfer automatic. The current rules are set out in the Office des Changes' 2024 General Instruction on Exchange Operations, in force since 2 January 2024.
What incentives does the 2022 Investment Charter offer?
The Investment Charter, framework law 03-22, offers state grants of up to 30% of an eligible investment in Morocco. The main support scheme applies to projects of at least 50 million MAD that create at least 50 stable jobs, or to projects creating more than 150 jobs whatever the amount. Strategic projects of 2 billion MAD or more are negotiated case by case.
- Job creation: 5% to 10% of the investment.
- Territorial premium: 10% or 15% for projects outside the most developed provinces.
- Sector premium: 5% for priority sectors.
- Gender parity, future jobs, sustainable development and local integration: 3% each.
A dedicated scheme for very small, small and medium enterprises (TPME) launched in November 2025. It covers projects of 1 million to 50 million MAD, with at least 10% own funds, and grants for jobs, location and priority activities, also capped at 30%. The CRIs handle applications in each region. Companies that are less than three years old do not have to meet the turnover condition.
Are there special zones with lower taxes?
Morocco's Industrial Acceleration Zones (ZAI, formerly free zones) give exporting industrial companies a five-year corporate tax exemption from the start of operations, then the 20% rate. Casablanca Finance City (CFC) offers a five-year exemption from incorporation, then 20%, to financial firms and regional headquarters, and from 2026 a flat 20% income tax for their employees.
The zones matter less than they once did. Since the 2023 reform the standard rate for most companies is also 20%, so the zone advantage is mainly the five-year exemption, customs facilities for exporters and ready-built industrial land. Companies already in a zone before 2021 keep their earlier regime.
How can a foreign manager or employee work legally in Morocco?
A foreign employee needs an employment contract approved by the Moroccan Ministry of Labour before starting work, under Article 516 of the Labour Code. The application is filed online on the TAECHIR platform. In most cases the employer must first obtain an ANAPEC certificate showing no Moroccan candidate was found, although company managers and partners are among the exempt categories.
Once the contract is approved, the employee applies to the national police (DGSN) for a residence card. Plan for the whole process to take several months, and start it as soon as the company has its trade-register number. Once a company is set up in Morocco, it is a natural base for West African markets.