Legal Business Structures

Self-Employment (Liberal Professions or the Professions)  

The Self Employment type (locally called Entreprise Individuelle) is a legal entity which operates by a natural person under his own name in order to exercise a “Liberal Profession” or a lucrative activity. 

Sole Proprietorship (also Sole Tradership or Individual Entrepreneurship) 

The sole proprietorship type is accessible to any natural person residing in Morocco and exercising, under his personal name and on individual basis, an independent activity based on his own work force, skills, and knowhow for the purpose of generating an income. 
For more information, please access the following website: www.ae.gov.ma

General partnership (SNC) 

It is the only type of legal entity in Morocco whose partners have all together the stature of traders and share inclusively unlimited liability for any corporate debts. No minimum capital is required for its creation.

Limited Partnership Business Entity (SCS) 

This structure is distinguished by including two types of partners: Limited Partners: passive partners acting as contributors to the Capital, and General Partners: active partners in charge of managing the SCS.

Limited Liability Company (SARL) 

As a widespread legal structure, the SARL can be created by a sole partner and partners’ liability is limited to the amounts of their contribution, while auditing control is only compulsory starting from MAD 50 million turnover. Financial companies cannot operate under this structure.

Public limited company (SA) 

A public limited company (SA) is subject to corporate tax and its structure is cut out for large projects (its minimum capital is MAD 30,000). This structure requires an important number of partners (minimum of 5). 

Simplified joint stock company (new SAS) 

This new legal form has been applied by law 19.20 to represent better simplification and flexibility. The SJS (new SAS) form could be created either by one legal or natural person, and therefore takes the name of "Sole member Simplified-Joint Stock Company". Ogranizantional and managing modes are freely fixed by legal status. 

Partnership limited by shares (SCA) 

This company is defined as having a capital divided into shares and constituted, on the one hand, by one or more general partners who have the quality of traders being inclusively subject to unlimited liability for corporate debts, and on the other, by limited partners who have the quality of shareholders and bear losses only up to the limit of their contributions. 

Joint venture (JV)  

The joint venture is a non-registered category, with no legal entity and is not subject to any publication procedures. It is not inclined to be known by third parties and it operates freely. Composed of at least two partners, each one must make a contribution in cash, in kind or in industry. 

Permanent Establishment  

As an entity taking part of a group, the subsidiary enjoys management but not financial autonomy nor any legal entity. It depends on a parent company, possibly a foreign group not wishing to create a company under Moroccan law. These entities known as “permanent” are subject to corporation taxation.

Economic Interest Grouping (GIE)

The GIE is an intermediate legal entity type between association and company. It can be a non-profit entity yet allowed to do business and make profit. Registered in the Register of Commerce, it can be created by two or more partners, legal or natural, with no maximum and with or without capital. 

 

The Casablanca-Settat RIC is ready to advise you in choosing the most appropriate legal business structure for your project. 

To book an appointment with our advisors, please click on the following link:

cri-accompagnement.casainvest.ma