Choosing your company’s legal structure is the most crucial step before the realization of your project. This choice only comes up at the registration of your company at Morocco’s commercial register, which usually happens after verifying the feasibility of the project and finding funding for it.
A company’s legal form is a contract that establishes the future legal framework of the said company and binds it to its clauses. In addition to the “Corporate purpose” defining the activity of the company and its legal structure (SA, SARL, SNC, etc.), this contract also includes clauses that frame decision-making within the company and deals with the distribution of powers between the various shareholders.
The legal form determined upon creation will therefore have an impact on the entire lifespan of the company. To avoid an ill-considered choice, it is better to seek further advice from an expert in the field.
What are Morocco’s different legal forms?
There are many legal forms for business structures in Morocco which are oftentimes divided into two groups:
- Capital companies (Société de capitaux) : These are companies that focus on the contributions of partners to the company’s share capital.
- Partnerships (Société de personnes) : These companies are characterized by the predominant aspect of the personal factor “intuitu personae”.
The most common legal structures of companies in Morocco are S.A companies, S.A.R.L companies, and individual companies. Next is a brief introduction to each legal structure:
To learn how you can better choose the legal form most appropriate to your company, read the second part of Starting your company in Morocco.
For further tips or any other concerns, our community is here to hear you out!