How to Create an LLC in Morocco

Creating a Limited Liability Company (LLC) in Morocco—locally referred to as a Société à Responsabilité Limitée (SARL)—is a straightforward process guided by the provisions of Law No. 5-96. This article explains how to create an LLC in Morocco step-by-step, referencing the relevant Moroccan legal provisions to ensure compliance.

Step 1: Understand the Basics of Creating an LLC in Morocco

An LLC in Morocco is a corporate structure where the liability of its shareholders is limited to their contributions.

Legal Basis: Article 44 of Law No. 5-96 states:

“La société à responsabilité limitée est constituée par une ou plusieurs personnes qui ne supportent les pertes qu’à concurrence de leurs apports.”

This means shareholders’ personal assets are protected, making it a popular choice for entrepreneurs.

Step 2: Choose a Business Name for your LLC in Morocco

The company’s name must be unique and include the designation “SARL” or “Société à Responsabilité Limitée.”

Legal Basis: Article 45 of Law No. 5-96 specifies:

“La société est désignée par une dénomination sociale, à laquelle peut être incorporé le nom d’un ou plusieurs associés, et qui doit être précédée ou suivie immédiatement de la mention société à responsabilité limitée ou des initiales SARL.”

Ensure the name adheres to these requirements and is approved by the Moroccan Office of Industrial and Commercial Property (OMPIC).

Step 3: Define Share Capital

Previously, under Article 46 of Law No. 5-96, the minimum capital required to establish a Limited Liability Company (LLC or SARL) in Morocco was 100,000 MAD, divided into shares of at least 100 MAD each. The provision stated:

“Le capital de cette société doit être de cent mille dirhams au moins. Il est divisé en parts sociales égales, dont le montant nominal ne peut être inférieur à cent dirhams.”

However, Law No. 21-05, which amends Law No. 5-96, significantly reduces this requirement to make the SARL structure more accessible. The new minimum share capital is now 10,000 MAD, enabling small and medium enterprises to establish LLCs with lower financial barriers.

Updated Legal Basis (Law No. 21-05):

“Le capital de cette société doit être de dix mille (10.000) dirhams au moins.”

This change ensures that the SARL structure is more inclusive for entrepreneurs and small businesses, while retaining the requirement for clear financial contributions divided into equal shares.

Step 4: Draft the Articles of Association for your LLC in Morocco

The Articles of Association (états des statuts) form the legal foundation of the LLC. They must detail:

The company name and purpose
Share capital and contributions
Shareholder details
Management structure

Legal Basis: Article 50 of Law No. 5-96 mandates:

“Les statuts doivent, à peine de nullité de la société, être datés et indiquer . . . [specific details such as company name, share capital, and shareholder contributions].”

Ensure this document is signed by all shareholders and complies with the outlined requirements.

Step 5: Deposit Share Capital

Share capital contributions must be deposited into a blocked bank account until the LLC is officially registered.

Legal Basis: Article 51 of Law No. 5-96 requires:

“Les fonds provenant de la libération des parts sociales sont déposés dans les huit jours de leur réception, par les personnes qui les ont reçus, dans un compte bancaire bloqué.”

The bank will issue a deposit certificate needed for the registration process.

Step 6: Register with the Trade Registry

To formalize the LLC, you must register it with the Trade Registry at the appropriate local court.

Legal Basis: Article 50 of Law No. 5-96 states:

“Les statuts doivent indiquer… le greffe du tribunal où les statuts seront déposés.”

This step involves submitting the Articles of Association, the certificate of share capital deposit, and other required documents.

Step 7: Assign Shares and Ensure Compliance

The shares of the company must be fully subscribed and paid for by shareholders. However, contributions in kind such as labor, skills, or services (“apports en industrie”) are not permitted as a basis for shares. Contributions should consist of monetary funds or tangible assets.

Legal Basis: Article 51 of Law No. 5-96 specifies:

“Les parts sociales doivent être souscrites en totalité par les associés et intégralement libérées. Les parts sociales ne peuvent pas représenter des apports en industrie.”

This provision ensures that the company begins with a clear, quantifiable financial foundation. Compliance is essential to avoid penalties or challenges to the company’s formation.

Step 8: Obtain the Registration Certificate

Once the Trade Registry approves your application, you will receive a registration certificate. This document officially recognizes your LLC as a legal entity.

Legal Basis: Article 52 of Law No. 5-96 outlines the procedure for fund release and registration:

“Le retrait des fonds provenant de la libération des parts sociales peut être effectué par le mandataire de la société, contre remise d’une attestation du greffe du tribunal attestant que la société a été immatriculée au registre du commerce.”

Step 9: Launch Your LLC

After completing all legal and administrative steps, your LLC is ready to operate. Ensure compliance with tax obligations and labor laws if you hire employees.

Limitations and Special Cases

LLCs cannot have more than 50 shareholders. If this limit is exceeded, the company must transition to a public limited company (SA) within two years or face dissolution.

Legal Basis: Article 47 of Law No. 5-96 states:

“Le nombre des associés d’une société à responsabilité limitée ne peut être supérieur à cinquante. Si la société vient à comprendre plus de cinquante associés, elle doit, dans le délai de deux ans, être transformée en société anonyme.”

Additionally, an LLC cannot have another single-member LLC as its sole shareholder.

Legal Basis: Article 49 of Law No. 5-96 states:

“Une société à responsabilité limitée ne peut avoir pour associé unique une autre société à responsabilité limitée composée d’une seule personne.”

Conclusion

Creating an LLC (SARL) in Morocco involves a series of structured steps regulated by Law No. 5-96. From defining share capital to registering with the Trade Registry, adherence to the legal provisions ensures a smooth and compliant setup process. By understanding and applying these laws, entrepreneurs can establish a secure foundation for their businesses in Morocco.

Where to Find the Law for How to Create an LLC in Morocco

The law for creating an LLC in Morocco is governed by Law No. 5-96. You can find the full text here.

Need Assistance?

If you need help creating an LLC or understanding the legal requirements in Morocco, our team is here to assist you. Contact us for expert guidance to make the process seamless and stress-free.