International companies exploring Morocco face a key early decision: which form of market presence to establish? The three main options — representative office, branch, and wholly-owned subsidiary — have different implications for taxation, liability, and operational capability.
Representative Office
A representative office (bureau de représentation) can be established relatively quickly and at low cost. It is suitable for market prospecting, relationship management, and coordination activities. Critically, it cannot conduct commercial transactions or issue invoices in Morocco. It is tax-exempt but cannot employ more than a few staff.
Branch Office
A branch (succursale) is an extension of the foreign parent company — not a separate legal entity. It can conduct commercial operations and issue invoices, but the parent company is fully liable for all branch obligations. Branches are subject to Moroccan corporate tax on locally-generated income.
Wholly-Owned Subsidiary (SARL/SA)
A wholly-owned subsidiary is a separate Moroccan legal entity, providing liability isolation from the parent. It is the most common choice for established market entry, offering the full range of commercial capabilities, access to Moroccan financing, and the ability to participate in public tenders. Minimum capital 1 MAD for SARL.
Making the Right Choice
Most international companies start with a representative office for market testing (3-12 months), then progress to a SARL subsidiary for full commercial operations. A branch is an intermediate option rarely chosen due to its unlimited liability exposure for the parent.
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