How to Register a Sole Proprietorship (Auto-entrepreneur / Entreprise Individuelle) in Morocco

Starting out as an independent contractor in Morocco is appealing because of the simplified auto-entrepreneur status. It allows individuals to work commercially, artisanally, or provide services with less bureaucracy than forming a company.

There are two main tax regimes for sole proprietors: the simplified auto-entrepreneur regime with fixed turnover-based taxes, and the standard entreprise individuelle regime, where income is taxed under Morocco’s progressive income tax system. The simplified regime is generally chosen by freelancers, artisans, and small traders with modest revenue, while the standard regime applies if you exceed turnover thresholds or prefer to deduct expenses.

The biggest challenges are making sure you are eligible (activity type, residency), staying under revenue limits, and keeping up with periodic declarations. The benefits include lower tax rates, exemption from VAT under certain thresholds, simplified accounting, the ability to issue legal invoices, and access to social security.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Morocco?

In Morocco, a sole proprietorship under the simplified regime is officially called an auto-entrepreneur. More generally, it is referred to as an entreprise individuelle. Depending on the context, it may also be described as:

• Sole trader
• Self-employed worker
• Independent contractor

These terms all describe the same business model: one person legally running a business without forming a separate company entity with significant incorporation formalities.

How does a sole proprietorship (auto-entrepreneur / entreprise individuelle) work in Morocco?

Auto-entrepreneur vs. other business structures in Morocco

The most common alternative to the auto-entrepreneur is the SARL (société à responsabilité limitée), a limited liability company where owners’ liability is restricted to their capital contributions. Below is how an auto-entrepreneur compares to SARL:

Step-by-step guide: How to register a sole proprietorship in Morocco

Step 1: Check your eligibility

You must be a natural person of legal working age. Moroccan nationals and foreign residents with valid permits can apply. The activity must be industrial, commercial, artisanal, or service-oriented, and not excluded by regulation. Turnover must remain below 500,000 MAD for commercial/industrial/artisan activities or 200,000 MAD for services.

Step 2: Choose your business name

Many auto-entrepreneurs operate under their personal name. If you want to use a brand name, you should verify its availability through OMPIC and, if necessary, obtain a Negative Certificate.

Step 3: Gather required documents

You will typically need:

• National ID card (CNIE) or residence permit for foreigners
• Passport-style photo
• Pre-registration form from rn.ae.gov.ma
• Proof of address

Step 4: Register with the National Register of Auto-Entrepreneurs

Pre-register on the online portal (accessible from Morocco). Print and sign the registration form, then submit it at a Barid Al-Maghrib agency along with your documents.

Step 5: Pay registration fees and contributions

Registration is free or minimal. Taxes are paid quarterly at 0.5% of turnover for commercial/industrial/artisan activities and 1% for services. Social contributions for health and pension coverage are also due, and amounts depend on your reported turnover.

Step 6: Complete post-registration obligations

After registration, you must regularly declare your turnover, issue compliant invoices, and maintain simple records of receipts. You are exempt from VAT under thresholds, but if you exceed turnover limits, you must switch to another regime and comply with more complex tax and accounting requirements. Keeping up with social contributions and quarterly tax declarations is mandatory to remain compliant.

Financial and tax obligations for sole proprietors in Morocco

You are responsible for:

• Income tax: Sole proprietors in Morocco pay either a flat tax under the auto-entrepreneur regime (0.5% for commercial, industrial, or artisanal activities; 1% for services) or progressive personal income tax rates ranging from 0% to 37% under the standard entreprise individuelle system. Incorporated entities such as SARLs or SAs are subject to corporate income tax (CIT) between 17.5% and 34%, transitioning to 20 %–35 % by 2026.

• VAT: The standard VAT rate is 20%. Auto-entrepreneurs are exempt while their turnover remains below MAD 500,000 for trade or industry and MAD 200,000 for services. Registration becomes mandatory if these thresholds are exceeded for two consecutive years.

• Social contributions: All self-employed persons must contribute to Morocco’s social protection system, covering health insurance (AMO) and pensions (CNSS). Contributions are based on declared income or turnover and paid quarterly through CNSS or Barid Al-Maghrib.

• Record-keeping: Auto-entrepreneurs follow simplified bookkeeping—mainly receipts and invoices—while standard sole proprietors must keep full accounting records for at least ten years under the Code Général des Impôts.

• Invoicing: Invoices must include your tax ID (IF) or company number (ICE), business name, client details, date, description, total amount, and any applicable VAT. They must be sequentially numbered and retained for at least ten years.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start an auto-entrepreneur in Morocco?
No minimum capital is required under the auto-entrepreneur simplified regime.

Do auto-entrepreneurs need to register for VAT?
No, as long as their turnover remains below the threshold (500,000 MAD for commercial/industrial/artisan activities and 200,000 MAD for services). VAT registration is mandatory only if exceeding the legal threshold.

How much are the standard monthly or annual contributions?
Taxes are paid quarterly based on turnover. At 0.5 % (commercial/industrial/artisan) or 1 % (services). Social contributions are also due and vary depending on turnover. For example, if you run a service activity and make 100,000 MAD/year, you would pay around 1,000 MAD annually in income tax plus contributions for health and pension coverage.

Can an auto-entrepreneur hire employees?
No. The auto-entrepreneur status is designed for individual activity without employees.

How long does it take to register as an auto-entrepreneur in Morocco?
It can often be done in a few days, depending on how quickly you submit the correct documents and the local agency processes them.

Can foreign nationals register as auto-entrepreneur in Morocco?
Yes, provided they have a valid residence permit (titer de séjour) and meet eligibility criteria.

Do auto-entrepreneurs need a separate business bank account?
While not legally mandatory for very small operations, it is strongly recommended to have a separate bank account for business transactions.

What happens if I stop working as an auto-entrepreneur?
You can deregister (radiation) from the National Register of Auto-Entrepreneurs (RNAE) by submitting a request at Barid Al-Maghrib. You must also settle outstanding taxes and contributions.

Are there any government incentives or reduced rates for new auto-entrepreneurs?
Yes. Auto-entrepreneurs are exempt from the business tax (“taxe professionnelle”) for the first five years.

Can I use Deel as an auto-entrepreneur to get paid by international clients?
Yes. Deel allows auto-entrepreneurs to receive payments from international clients in multiple currencies with low fees.

Does Deel generate compliant invoices for auto-entrepreneurs?
Yes. Deel provides invoice templates that meet Moroccan legal requirements.

Can Deel help me with taxes as a sole proprietor in Morocco?
Yes. Deel provides downloadable payment records to support tax declarations.

Does Deel offer contracts for freelancers and auto-entrepreneurs?
Yes. Deel offers contract templates that comply with local laws.

Can I access benefits through Deel as an auto-entrepreneur?
Yes. Deel offers optional benefits like health insurance and retirement savings.