Morocco: Operating a Business

In this page: Legal Forms of Companies | The Active Population in Figures | Working Conditions | The Cost of Labour | Management of Human Resources

Legal Forms of Companies

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

Setting Up a Company	Morocco	Middle East & North Africa
Procedures (number)	4.00	6.28
Time (days)	9.00	19.51

Source: Doing Business - Latest available data.

The Competent Organisation: The Regional Investment Center of Casablanca.
For Further Information: Doing Business website, Procedures to start a business in Morocco.
Moroccan Office of Industrial and Commercial Property, Information on trademarks and patents in Morocco.
Export.gov, A commercial guide to assist companies wishing to export to Morocco.

Financial Information Directories

Charika - Moroccan business directory

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.

The Active Population in Figures

	2018	2019	2020
Labour Force	11,914,871	12,084,530	11,523,035

Source: International Labour Organization, ILOSTAT database

	2017	2018	2019
Total activity rate	48.57%	48.65%	48.73%
Men activity rate	74.84%	74.86%	74.90%
Women activity rate	23.14%	23.26%	23.37%

Source: International Labour Organization, ILOSTAT database

Employed Persons, by Occupation (% of Total Labour Force)	2014
Agriculture, hunting and forestry	37.2%
Financial intermediation	22.1%
Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods	17.9%
Manufacturing	10.9%
Construction	6.8%
Transport, storage and communications	4.9%

For Further Statistics: High Commissioner for Planning
L'Economiste
For Further Information About the Labour Market: World Bank

Working Conditions

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.

The Cost of Labour

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%
Competent Organization: National Social Security Fund

Management of Human Resources

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

Type of Contract: Employment regulations have been adopted in July 2003 and are in force since June 2004. Employment contract is governed by legal provisions and to a lesser extent by collective agreements and individual negotiations.
The employment contract form is rather rigid. Three types of contracts coexist: the permanent contract, the fixed term contract and the contract to complete a given work.

Breach of Contracts

Retirement: Possible
Dismissals: The new type justifies only dismissal for serious error or plurality of disciplinary actions.
In all the other cases, dismissal will be regarded as incorrect and will require payment of compensation of prior notice of dismissal.
Other Possible Methods: Employee's approval expressed by a signed and certified resignation letter.
Agreement between the employee and the employer (meant for the factory inspector) cancelling the contract
Expiry of the contract or completion of work aimed at in the contract for a fixed term contract (involves damages).
Labour Laws: Employment regulations of 2004 (in french)
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Dispute Settlement

Conciliation Process

Cases of Dispute: Incorrect dismissals, delay in the payment of salaries, non-respect of the work legislation
Legal Framework: Employment regulations of 2004 (in French)
Procedure: The first attempt at conciliation is done with the factory inspector.
If this fails, the governor of the province creates a provincial commission of investigation and conciliation and later on a National Commission in case the previous commissions do not succeed.

Judicial Structures

Legal Framework: Individual conflicts are settled in accordance with the legislation in force.
Employment regulations aims for conciliation of collective conflicts, in the event of failure, it takes recourse to arbitration. The verdict may further lead to an appeal before the Supreme court.
Competent Legal Body: Inspection of Work
Delegation of Work to the Prefecture

Social Partners

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)
Regulation Bodies: Ministry for Employment and Professional Training
Social Security National Office

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