LLC vs SAS in Morocco: Which Status to Choose in 2025?
LLC or SAS? This is the question all Moroccan entrepreneurs ask themselves. Each status has its advantages. Here's a detailed comparison to make the right choice.
The LLC (Limited Liability Company) is the most widespread status in Morocco, representing more than 80% of company formations. The SAS (Simplified Joint Stock Company), introduced more recently, is gaining ground among startups and innovative projects.
Both statuses share common points: limited liability to contributions, minimum capital of 1 MAD, Corporate Tax. But their differences can have a major impact on your project. Let's break them down.
LLC vs SAS Comparison Table
| Criterion | LLC | SAS | Verdict |
|---|---|---|---|
| Minimum capital | 1 MAD (symbolic) | 1 MAD (symbolic) | = |
| Number of partners | 1 to 50 partners | 1 partner minimum, unlimited | |
| Manager | Manager (individual) | President + CEO possible (flexibility) | |
| Articles flexibility | Regulated by law | Great statutory freedom | |
| Share transfer | Approval required (except family) | Free (unless clause to the contrary) | |
| Formation cost | More economical | Slightly more expensive | |
| Management simplicity | Simpler, clear legal framework | More complex, but flexible | |
| Fundraising | Difficult (approval required) | Easy (freely transferable shares) | |
| Startup/innovation image | Traditional | Modern, appreciated by investors | |
| Tax regime | Corporate Tax (same) | Corporate Tax (same) | = |
Choose LLC if...
- You're launching a traditional activity (commerce, services, crafts)
- You're alone or with close partners (family, friends)
- You don't plan to raise external funds
- You want a simple and predictable legal framework
- You're looking to minimize formation costs
Choose SAS if...
- You're creating a startup with rapid growth ambition
- You plan to raise funds from investors
- You want flexible and personalized governance
- You anticipate frequent shareholding changes
- Modern image matters to your partners and clients
The Governance Question
This is the major difference. In LLC, the manager has a status regulated by law: their powers are defined, important decisions require partner approval.
In SAS, you can create the governance of your choice: president alone, president + CEO, management committee... Articles freely define the rules. It's ideal for complex projects with multiple stakeholders.
Fundraising
If you plan to bring in investors, SAS is preferable. Shares are freely transferable (unless clause to the contrary), and you can create different categories of shares with different rights.
In LLC, partner approval is mandatory for any transfer to a third party. It's more protective, but less attractive to professional investors.
Cost and Complexity
LLC remains more economical: slightly lower formation costs, simpler administrative management, fewer formalities.
SAS requires more elaborate articles (therefore more expensive to draft), and sometimes more complex management. It's an investment that's justified for ambitious projects.
Our Recommendation
For 80% of projects, LLC is the right choice. It offers a simple, economical framework perfectly suited to commercial, craft or traditional service activities.
For startups and innovative projects with rapid growth ambition and fundraising, SAS is preferable from the start. Converting an LLC to SAS costs time and money.
When in doubt, consult a chartered accountant. The choice of status impacts your taxation, governance and ability to evolve.
Need Help Choosing?
Our experts analyze your project and recommend the most suitable status.