Morocco: Operating a Business

Société à Responsabilité Limitée S.A.R.L. (private limited company)

Number of partners: 1 minimum and 50 maximum
Capital (max/min): MAD 10,000
Shareholders and liability: Liability is limited to the amount of contributions.

Société anonyme, S.A. (public limited company)

Number of partners: 5 minimum with no maximum
Capital (max/min): MAD 3,000,000 to open a listed public limited companies and MAD 300,000 for a Public Liability company.
Shareholders and liability: Liability is limited to the amount of contributions.

Société en nom collectif, SNC (Partnership)

Number of partners: 2 partners at the minimum
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability is unlimited.

Société en Commandite Simple, SCS (Limited Partnership)

Number of partners: 2 partners at the minimum
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability of the active partners is unlimited and limited to the amount of contributions for the silent partners.

Société en Commandite par Actions, SCA (Partnership limited by shares)

Number of partners: 3 sleeping partners and one active partner.
Capital (max/min): no minimum capital.
Shareholders and liability: Liability of the active partners is unlimited and limited to the amount of contributions for the silent partners.

Business Setup Procedures

The Competent Organisation

The Regional Investment Center of Casablanca.

For Further Information

Doing Business website, Procedures to start a business in Morocco.
Export.gov, A commercial guide to assist companies wishing to export to Morocco.

Financial Information Directories

Dun & Bradstreet - Worldwide directory with financial information on businesses

Kerix.net - Business directory in Morocco

Kompass - Moroccan business directory

Recovery Procedures

Principle

The court appoints a receiver and controllers. The receiver contributes to managing the business. He draws up an economic, accounting and company balance sheet and offers a recovery package by considering possible offers. He meets the creditors to make offers to them.
The court then decides either on a plan of continuation, or a plan of transfer, or a compulsory liquidation.

Minimum Debt-to-Capital Ratio Triggering Liquidation

None

Bankruptcy Laws

Book V of the the Commercial law of 1996, inspired from the French legislation.

Reorganization and Rehabilitation Laws

Book V of the Commercial law of 1996, inspired from the French legislation.

For Further Statistics

High Commissioner for Planning
L'Economiste

For Further Information About the Labour Market

World Bank

Opening Hours

 

• Legal Weekly Duration

44 hours per week for non-agricultural sector.
48 hours per week for agricultural sector.

• Maximum Duration

Not more than 10h per day except for waiver

• Night Hours

From 21h to 6h

Working Rest Day

Sundays generally

Paid Annual Vacation

One and a half day per month of effective work, increased with seniority

Retirement Age

60 years generally and 55 years for miners.

Child Labour and Minimum Age For Employment

Forbidden for less than 15 years

Informal Labour Market

The informal sector is important in Morocco. According to the last survey in 2004, it represents 39% of the non-agricultural employment.

Pay

Minimum Wage

Morocco's minimum wage is MAD 3,300 per month in the public sector, MAD 2,828.71 per month in the private sector, and MAD 76,70 MAD per day for agricultural workers, according to the Moroccan government data.

Average Wage

The average salary of Moroccans in 2021 stood at around MAD 1,793. In the public sector, the average salary was MAD 8,237.

Other Forms of Pay

• Pay For Overtime

Increase by 25%

• Pay For Rest Days Worked

+25% during the day and 50% during the night

• Pay For Night Hours

No increase

• Pay For Overtime at Night

Increase by 50%

Social Security Costs

The Areas Covered

Health insurance, unemployment, family and maternity benefits, and pension

Contributions

Contributions Paid By the Employer: Family allocation: 6.40%
Social allocation: 8.98% (with a computation base capped at MAD 6,000)
Professional tax: 1.60%
Mandatory medical care: 4.11%.
Contributions Paid By the Employee: Social allocation: 4.48% (with a computation base capped at MAD 6,000)
Mandatory medical care: 2.26%

Recruitment

Method of Recruitment

Majority of recruitments in Morocco are done by co-option or network. The word of the mouth is thus essential.
Advertisements in the newspapers are always reliable, while those on the Internet are developing rapidly.

Recruitment Agencies

There are many recruitment firms, most of them being French-speaking.
On the other hand, one does not fine large international firms.
Link to a directory of recruitment firms.

Recruitment Websites

ReKrute
Employment exchange
Career option
Bayt.com: Source for Jobs in the Middle East

The Contract

Dispute Settlement

Social Partners

Employer Associations

CGEM - General Confederation of Companies of Morocco

Social Dialogue and Involvement of Social Partners

Historically unions had important influence but it has reduced. Article 29 of the Constitution gives workers the right to strike, but no detailed law defines it. Although unions claim high membership rates, Morocco has about 600,000 unionized workers, less than 6% of the 11.26 million-strong workforce. Three federations stand out among the 17 existing trade unions: Moroccan Union of Work (UMT), the Democratic Confederation of Work (CDT), and General union of the Workers of Morocco (UGTM).
Their negotiation powers are overall weak because of the rupture and a rather cloudy management, but they are rooted in the company.

Unionisation Rate

6% (official figures)

Labour Unions

Unions in Morocco
General Union of the workers of Morocco (In arabic)