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Frequently Asked Questions (25)

What is the procedure to create a permanent establishment in Morocco?

1. 1.    Obtention of the Negative Certificate from the Moroccan Office of Industrial and Commercial Property (OMPIC) to acquire a permanent establishment title,
2. 2.    Issuance of a Decision Statement of Facts concerning the opening of the permanent establishment,
3. 3.    Establishment of a tax domiciliation address in Morocco,
4. 4.    Registration of the Decision Statement of Facts at the taxation administration,
5. 5.    Deposit at the court clerk’s office and registration in the Register of Commerce,
6. 6.    Publication of the company creation (in French in a local legal gazette, and in Arabic in the Official Bulletin),
7. 7.    Adherence to the National Social Security Fund (CNSS),
8. 8.    Informing the Currency Exchange Office.

What is the difference between a Permanent Establishment and a Subsidiary?

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:

1. - The Permanent Establishment is endowed with major management autonomy, but without legal entity nor financial independence.

2. - 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.

Which legal business structure shall I choose for my company?

Many legal business structures are provided for by Moroccan law, mainly:

•    Self-Employment (Liberal Professions)
•    Individual Entrepreneurship
•    General partnership (SNC)
•    Limited Partnership Business Entity (SCS)
•    Limited Liability Company (SARL)
•    Public limited company (SA)
•    Simplified joint stock company (new SAS)
•    Partnership limited by shares (SCA)
•    Joint venture (JV)
•    Economic Interest Grouping (GIE)
•    Permanent Establishment
 

For more information, please access the legal business structures section following this link : Choice of the legal business structures

What are the administrative procedures for starting a business?

DIRECT ENTREPRISE has become the official platform for entrepreneurs, businesses, and professionals to handle all formalities related to company formation and the management of their activities : www.directentreprise.ma

Can we benefit from foreign manpower in Morocco?

Some derogations can be allowed to companies seeking foreign manpower, provided they obtain authorization from the competent department and justify that the profile to be recruited is not available in the local employment market.

For more information about foreign staff recruitment, please read this dedicated report : rapport sur l'emploi des salariés étrangers ↗