Doing business in Morocco

Moroccan law follows the civil law tradition, drawing heavily on French law, under the 2011 Constitution. Companies are governed by separate laws on the SARL and on joint-stock companies, the trade register is kept by the commercial courts with a central register at OMPIC, and Regional Investment Centres act as one-stop shops for investors. Tax is administered by the Direction Générale des Impôts, customs by the Administration des Douanes et Impôts Indirects, exchange controls by the Office des Changes and banking by Bank Al-Maghrib. Data protection sits with the CNDP and competition with the Competition Council.

Key facts

Corporate income tax

20% below MAD 100 million taxable income, 35% at or above it; 40% for banks and insurers (2026)

VAT

Standard rate 20%; reduced rate 10%

Main entity forms

SARL (limited liability company); SA and SAS joint-stock companies; branch

Foreign ownership

Up to 100% in most sectors; some sectors restricted and agricultural land barred to foreigners

Currency and exchange control

Dirham; exchange controls apply, with free transfer abroad of proceeds of investment made in a listed foreign currency

Data protection

Law 09-08; regulator CNDP

New York Convention

Party since 1959, applied to awards made in other contracting states

Working time

44 hours a week in non-agricultural sectors

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The limited liability company (SARL) is the most common vehicle, with joint-stock companies used for larger or investor-backed businesses. Incorporation runs through the Regional Investment Centres' one-stop shop, and foreign companies may also open a branch. Ownership is generally open to foreigners, but some sectors are restricted and foreigners cannot own agricultural land.

Key facts

• Most foreign-owned operating companies start as an SARL, which has no minimum capital; an SA (MAD 300,000 minimum) or SAS suits larger or investor-backed projects.

• Use the Regional Investment Centre as the entry point for formation formalities.

• A branch is quicker to manage but exposes the foreign parent directly to Moroccan liabilities.

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• Check sector restrictions early: foreigners cannot own agricultural land, and defence, air transport and some extractive activities carry limits.

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Key facts

• Model profits at 20% if taxable income is below MAD 100 million; 35% applies at or above that level, 40% to banks and insurers, and a temporary social solidarity contribution also applies to larger profits.

• VAT at 20% applies to most supplies, with a 10% reduced rate for specified goods and services after recent rationalisation.

• Cross-border royalties, service fees and interest attract 10% withholding tax and dividends 11.25% for 2026, unless a treaty reduces it.

Who handles this in MoroccoTax and structuringAccounting and annual filingsAudit

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Key facts

• Run CNSS contributions through payroll from hiring; employer and employee contributions cover social and family allocations, training and mandatory medical care.

• Foreign hires need a labour ministry visa on their employment contract, usually with an ANAPEC certificate that no Moroccan candidate is available, so build in the labour market test.

• Dismissal requires a valid reason and procedure, and severance is calculated on length of service.

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Industrial acceleration zones and Casablanca Finance City offer incentives, and foreigners can buy most urban property but face restrictions on agricultural land.

Key facts

• Exporters and manufacturers should compare industrial acceleration zone incentives with mainland options.

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• Regional or financial service hubs can consider Casablanca Finance City status, which gives a five-year exemption on export turnover and a 20% rate afterwards.

• Buying urban premises is generally possible; agricultural land usually needs a lease structure.

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• The Investment Charter's grants depend on project size, location and job creation criteria.

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Morocco operates exchange controls, and some transfers in or out of the country need prior authorisation. Proceeds of foreign investment made in a listed foreign currency, including dividends and sale proceeds, can be transferred abroad freely. Banks are supervised by Bank Al-Maghrib and apply anti-money laundering checks.

Key facts

• Make the initial investment in a foreign currency listed by Bank Al-Maghrib and keep the records, as this underpins later free transfer of dividends and capital.

• Some foreign currency transfers need prior authorisation from the exchange control office, so build documentation into treasury processes.

• Currency risk is managed within a basket band, so hedging policy should reflect both euro and dollar exposure.

• Expect full KYC at account opening under the anti-money laundering law.

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Who handles this in MoroccoPayments and currencyBanking and capitalTreasury and fundingAnti-bribery, sanctions and compliance

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Morocco has a wide network of trade agreements, including an association agreement with the EU, a free trade agreement with the United States in force since 2006, the Agadir Agreement and agreements with the UK and Türkiye. Customs is run by the Administration des Douanes et Impôts Indirects, and some industrial products are subject to conformity checks on import.

Key facts

• Rules of origin matter: preferential access to the EU, US, UK and Arab partners depends on meeting them.

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• AfCFTA membership adds a route into African markets alongside bilateral agreements.

• Check whether your products fall under mandatory conformity controls before the first shipment.

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• Customs declarations are handled electronically through ADII systems, so classification and valuation records should be consistent.

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Who handles this in MoroccoCustoms, trade and export controlsLicences, permits and regulators

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Key facts

• File CNDP declarations or authorisation requests before starting processing, including HR data.

• Cloud hosting and group data sharing outside Morocco need a CNDP-approved transfer route.

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Industrial property is governed by Law 17-97 and handled by OMPIC, and copyright by Law 2-00, with a dedicated copyright office. Morocco is in the Paris, Madrid and PCT systems, and European patents can be validated in Morocco under an agreement with the European Patent Office in force since 1 March 2015.

Key facts

• File trademarks with OMPIC directly or designate Morocco through the Madrid system, which Morocco joined in 1999.

• A European patent application can be extended to Morocco through validation, avoiding a separate national filing.

• Copyright is governed by Law 2-00 and administered by the Moroccan Copyright and Neighbouring Rights Office; keep evidence of creation and ownership.

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Takeovers of listed companies fall under the AMMC, and insolvency proceedings follow Book V of the Commercial Code, reformed in 2018.

Key facts

• Check Competition Council thresholds (MAD 1.2 billion worldwide or MAD 400 million in Morocco, or a 40% market share) for any acquisition; closing before clearance is not permitted without a derogation.

• There is no cross-sector foreign investment screening, but check sector licensing rules on changes of control.

• Safeguard proceedings allow restructuring before a company becomes insolvent.

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• Listed targets bring AMMC takeover rules into play.

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Bribery is criminalised under the Penal Code, and a national authority leads corruption prevention. Morocco's anti-money laundering framework is based on Law 43-05, and the country left the FATF grey list in 2023. Whistle-blower protection exists for corruption reports.

Key facts

• Build anti-bribery controls for dealings with officials, including licensing and customs.

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• Designated businesses, not only banks, have anti-money laundering duties under Law 43-05.

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• Morocco's exit from FATF monitoring eases, but does not remove, bank due diligence.

• Internal reporting channels should reflect whistle-blower protections.

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Commercial disputes go to specialised commercial courts and commercial courts of appeal. Arbitration and mediation are governed by Law 95-17 of 2022, and Morocco has been a party to the New York Convention since 1959. Foreign judgments are enforced through an exequatur procedure.

Key facts

• Arbitration seated in or outside Morocco is well supported, with modern rules under Law 95-17.

• Commercial courts give access to specialist judges for contract and company disputes.

• Plan for exequatur proceedings to enforce a foreign judgment.

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• Investors may have treaty-based access to ICSID arbitration.

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