Daily Business

Creation fees are charges incurred in cases of actions that condition the company's existence or development, especially creation, capital increase, merger with another company, or any other action that may affect the entity’s life cycle. Their amount cannot be related to any production of goods or services rendered.

Dividends are a share of profits distributed to the company's shareholders. They are fixed by the General Assembly following judiciary approval of annual accounts. The distribution is carried out either in cash or shares, which in such a case, will result in a capital increase.

Domiciliation is an action whereby a physical or legal person, called domiciliation entity, lays its head office at the disposal of another physical or legal person, called domiciliated entity.

The domiciliation contract is concluded through a template form designed by authorities and intended for a limited period renewable by tacit agreement. Enterprise domiciliation in Morocco is ruled by virtue of Law 89-17 terms and conditions.

Limited Liability Company (SARL) managers, either partners or not, as minority or majority, who receive a salary by virtue of their activities and responsibilities within the company, are compulsorily subject to both the National Social Security Fund (CNSS) and the Compulsory Health Insurance (AMO).

Investors and entrepreneurs have to pursue regularly budgets and predict potential evolutions for the purpose of efficient monitoring and control of the company's development. This is feasible by using specialized software, tasking an SME to manage it or calling for short-term bank loan.

The Accounting Summary Statements should be established in compliance with the accounting law and the General Code of Accounting Standards (CGNC). They can be in two presentation modes:
•    The standard mode which includes 5 statements forms an inseparable whole:

1. 1.     The Accounting Balance: an indispensable document for accounting control consisting of a recapitulation statement precising for every account if its balance is debitor or creditor as of the beginning of the tax year, cumulated debit and credit transactions as well as debit and credit balances added up at the end of the period.
2. 2.     The Ledger: a daybook held as per conditions provided for by Law where transactions are recorded either on daily basis or in the form of at least a monthly recapitulation of the sum t

Any physical or legal person with trader quality, in the sense of the Moroccan Trade Code, is liable to handle his corporate accounting as provided for by the relevant Law and its attached tables of terms and conditions. The accounting should record, in detail and in day-to-day
chronological order, all transactions susceptible to alter the enterprise assets and liabilities. Every accounting record should specify the origin, designation and the transaction allotment as well as the reference of supporting vouchers.
 

Companies must submit tax returns on a monthly, quarterly or annual basis:

•    Monthly or annual income tax return,
•    Annual corporate tax return and quarterly corporate tax down payments,
•    Monthly or quarterly VAT tax return,
•    Professional tax return,
•    Social security return (Social Security National Fund “CNSS”, Moroccan Inter-professional Retirement Fund “CIMR”…)

A working capital refers to the resources that a company owns enabling it to cover its expenditures pending concrete incomes from its clients. Awareness of this parameter allows the company to anticipate any shortage resulting from a mismatch between assets and liabilities as well as providing a short-term adequate financing to overcome such a shortage.