Choosing the best Legal Structure for Your Company – Part 2/2

Signing on a paper - - E-learning, formations et emplois.

This is the second part of Moroccan Legal Structures in which we’ll be focusing on how to choose the best Legal Form for your up-and-emerging company. If you didn’t read the first part, it is highly recommended to do so, you can find it here.

So without further ado, let’s get to it:

How to determine the appropriate legal form for your project?

Before seeking out an expert to ask what’s best suited for you, it is always better to prepare for the various questions that’ll help shape your decision.

Juridical form - Illustration

How much initial capital are you starting with?

The regulations on S.A and S.A.R.L legal forms require a minimum amount of capital (300.000 DH for S.A and 10.000 DH for S.A.R.L). For other legal forms, no minimum amount of capital is required.

It is important to note that taking loans from banking organizations is not considered capital. On the other hand, getting funded by a venture capitalist or a business angel is considered to be capital and therefore gives them the right to enjoy a part of the shares and future profits as well.

Should you take an associate?

An associate can be crucial to your company’s development if you set your eyes on someone with skills that complement your own and ensure a strong commitment from said person. If that’s the case, then it is better to plan a Partner Agreement (Pacte d’associé); This partner agreement makes it possible to define the important matters on which no decision can be made without special precautions being followed.

Business risks concept - - Formations et emplois

How much risk are you prepared to assume?

In the context of a capital company, the liability of partners only goes as far as their initial contributions. In other words, in case of bankruptcy, the only risk you’re taking is the loss of funds you invested in the company’s capital. For other legal structures, namely in the context of a partnership (Societé de personnes), the risk is much greater as you are personally responsible for all indebtedness of the business and its bankruptcy can affect your private property and assets.

Now that you have your answers down and can easily differentiate between the different legal forms, you can confidently seek for advice from an expert in the field to get you started on your path to prosperity.

To know more, head to this comparative page of different Moroccan Legal Forms from Dar Almoukawil.

For further tips or any other concerns, our community is here to hear you out!

Related Articles


Your email address will not be published. Required fields are marked *