Foreign companies intending to settle in Morocco have the choice among many types of representation, namely permanent establishments and subsidiaries.
Both types share the characteristic of being dependent of a parent company but at different degrees:
- - The Permanent Establishment is endowed with major management autonomy, but without legal entity nor financial independence.
- - A subsidiary stands under the exclusive control of the parent company as a result of:
- ●Direct or indirect Parent Company’s ownership of the voting right majority which entitles it to designate the majority of the subsidiary’s admin staff,
- ● Or designation, during two simultaneous tax years, of the majority of the subsidiary’s admin staff (except in cases of companies under joint control),
- ● Or right to exert a “predominance” upon the subsidiary, by virtue of a contract or a statute clause, granting it the power to steer the subsidiary.
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