3 useful tips for a successful business start-up

Would you like to set up your investment project by creating a company?

We invite you to take a look at our top tips to help you make the most of your chances.

1. Choice of legal form

The choice of the company's legal form is an important issue, and needs to be decided objectively before the incorporation process can begin.

While there is no such thing as an ideal legal status, there are a number of criteria that will help you find the one best suited to your situation.

These include:

The number of shareholders in the company,
Activities to be pursued within the company,
The link between a company's legal form and its directors' liability,
Freedom of management or administration within the company ...

2. Determining the amount of share capital
How much should you invest in the capital of your new company? Here's a question that needs clarification.

As with the previous question on choosing a company's legal form, determining a company's share capital is by no means an easy task.

It plays an important role in the smooth running of the company, especially at the start-up stage, as it helps to reassure the company's partners (customers, suppliers, bank, etc.) and enhance its credibility in their eyes.

It is all the more important in that it has significant economic consequences.

For all these reasons, it is essential not to take the determination of the amount of your share capital lightly, even though some forms of company set no minimum.

It's a good idea to know what's at stake in your project beforehand, and to consider the needs of your company at this crucial stage of business creation.

3. Choosing a tax advisor

To avoid the numerous impacts, not only for your company but also for you personally, the support of a legal and tax advisor is essential.

In view of our experience in this field, as a tax and legal accounting firm, we can help you set up your investment project by providing you with advice tailored to your needs, and by drawing up financial plans that will enable you to plan for the years ahead.

Should you require any further information on this subject, please do not hesitate to contact our legal and tax team.

Faithfully yours,

Ilham Taha-Bouamri
Chartered accountant and tax specialist

Pool the risks of your business by opting for international trading!

What if you opted for triangular trade or international trading to pool the risks of your business?

Dear readers,

In order to minimize inventory risks As a result, many investors are increasingly turning to triangular or international trade.

International trading involves the acquisition by a resident trader, whether an individual or a legal entity duly registered in the Commercial Register. A good from a non-resident supplier for resale to a foreign customer at a profit. And without the said good being imported into Morocco.

A legislative and regulatory framework has also been put in place to encourage this practice.

Previously, this operation required authorization from the foreign exchange office. But with the globalization of economies, this activity has been liberalized.

As a result, traders can now pay their non-resident suppliers well before collecting receivables from their non-resident customers.

This incentive is only subject to a formal obligation: the existence of a profit margin (difference between selling price and cost).

Schematic illustration of International Trading

Suppose :

  • X a foreign company,
  • Y a Moroccan company and
  • CF the end customer.

The Moroccan company (Y) wishes to export goods directly from the foreign company (X) to its end customer outside Morocco as part of a sale.

However, X will bill Y purchase of parts delivered direct on the country of the end customer.

Final payment will therefore be made between the end customer and Moroccan company Y.

We are therefore dealing with two types of flow: a flow of money and a flow of goods.

To do this, the retailer must be registered with the foreign exchange office and has an "international trading" foreign exchange account .

Indeed, in accordance with article 17 of the General Instruction on Foreign Exchange Operations 2022 (IGOC),
"... International traders wishing to settle invoices for the purchase of goods before repatriating the proceeds of resale are also required to register with the Foreign Exchange Office...".

Article 83 of IGOC 2022 stipulates that "banks are authorized to open an account for each currency in the name of the trader, dedicated exclusively to the management of international trading operations".
If you have any further questions on this subject, our legal and tax team will be happy to advise you in your best interests.

Faithfully yours,

Ilham Taha-Bouamri
Chartered accountant and tax specialist

Taxation of benefits of any kind in Morocco

The purpose of this legal note is to provide an update on benefits in kind in Morocco.

In fact, they are one of the prime targets of tax inspectors; hence the need to pay particular attention to the subject of benefits in kind in Morocco.

Benefits in kind are goods and services provided to employees/company managers to help them with expenses outside the workplace.

In other words, the benefit in kind can be defined as the "part of a remuneration that does not take the form of money"..

These benefits in kind can take many different forms, but always appear on the payslip as long as the employee also makes private use of these items.

In the same way as bonuses and allowances, benefits in kind are added to the remuneration paid to staff and are deductible as long as they are not deemed abnormally exaggerated in relation to the work performed.

Benefits in kind include the following:
1- housing owned or rented by the employer and assigned free of charge to an employee;

2- water, electricity, heating and telephone expenses;

3- domestic service expenses (driver, gardener, cook, janitor, maid, nurse, etc.) allocated to the personal services of an employee;

4- expenses relating to company cars permanently assigned to an employee ;

5- food expenses ;

6- expenditure on clothing, with the exception of work clothes required for the exercise of the profession (blouses, uniforms required by the profession, etc.).

To constitute remuneration, the benefit in kind must :
1- be granted free of charge. If a deduction is made from the employee's salary or if the employee is required to pay a usage fee, there is no benefit unless the amount of the deduction or payment is less than the value of the item provided;

2- concern an object or service for the employee's personal use. The expense covered by the company must be the employee's normal responsibility. It may be private (accommodation, food, etc.) or professional (car, etc.).

As regards the tax treatment of these benefits, please find attached a table summarizing the various useful information on this subject.

DGI April 2011 P506 -509

We will be happy to provide you with further information.

Faithfully yours,

Ilham Taha-Bouamri
Chartered accountant and tax specialist