Auto-Entrepreneur and Free Zones in Morocco: Are They Compatible?
Many project owners wonder whether they can combine the auto-entrepreneur status with the benefits of a free zone in Morocco. In practice, the answer is no: the two follow different legal and tax logics. This article explains why, and what the right route is if you are targeting the free zone regime.
What the auto-entrepreneur status is
The auto-entrepreneur status, governed by Law 114-13 (2015), is aimed at an individual who carries out, on a personal basis, a commercial, industrial, craft or service activity, within turnover ceilings (MAD 500,000/year for trade, industry and crafts; MAD 200,000/year for services). The auto-entrepreneur operates in their own name: they do not create a legal entity (company) and fall under a simplified income-tax regime.
What the free zone regime requires
The Industrial Acceleration Zone (ZAI) regime applies to companies (legal entities) effectively established within a zone’s perimeter and subject to corporate income tax. It is this framework — a five-year IS exemption then a reduced rate of 20% — that is detailed in our guide to the ZAI tax benefits. In other words, benefiting from the regime requires a corporate structure and establishment in the zone.
Why the two are not compatible
The incompatibility stems from the very nature of the two regimes: the auto-entrepreneur is an individual without a company, taxed on a flat-rate income-tax basis; the free zone is a regime reserved for companies subject to IS and established in the zone. An auto-entrepreneur therefore cannot, as such, claim free zone benefits. Moreover, the auto-entrepreneur status cannot be combined with other income-generating activities and remains capped.
The right route if you target the free zone
If your project is eligible and you target the favourable regime, the solution is to create a company (SARL, SA, branch) established in the zone, rather than operating as an auto-entrepreneur. Our article on the legal structure in a free zone and our guide to setting up a business in a free zone detail the steps. The choice between auto-entrepreneur and a company should be studied based on your activity, volumes and market.
How Cabinet Dami & Associés supports you
Choosing between an auto-entrepreneur and a company, and determining eligibility for a free zone, requires an analysis of your project. Since 1991, Cabinet Dami & Associés guides you towards the most suitable structure and secures its implementation. To discuss it, contact our experts.
FAQ — Auto-entrepreneur and free zones
Can an auto-entrepreneur benefit from the free zone regime?
No. The free zone regime is reserved for companies subject to IS and established in the zone; the auto-entrepreneur is an individual without a company, taxed on income.
What are the auto-entrepreneur ceilings?
MAD 500,000/year for trade, industry and crafts; MAD 200,000/year for services (Law 114-13).
What should I do to target the favourable regime?
Create an eligible company established in the zone, after validating the activity’s eligibility.
Conclusion
Auto-entrepreneur and free zones in Morocco are not compatible: the favourable regime requires a company subject to IS and established in the zone. To choose the right structure, talk to the experts at Cabinet Dami & Associés.
Official sources: Law 114-13 (auto-entrepreneur status); General Tax Directorate — General Tax Code.
