Morocco

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DOING BUSINESS

 


Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

The Moroccan government is very keen on the promotion of foreign investments. The "investment Code" encourages foreign investors to tap the Moroccan market. The code of industrial investments divides Morocco into 4 zones. Allowances are different from one zone to the other. Allowances can be tax reductions, subsidies, premiums etc. In order to obtain further information on the various aids by zone, investors should contact the Office of Industrial Development (ODI).
The Ministry of Economy and Finance, through the Board of Foreign Investment, also provides assistance and support to foreigners willing to invest in Morocco.

 

Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
S.A.R.L is a Private Limited Company Minimum 2 DH 10,000 Liability is limited to the amount contributed. About DH100 No
S.A. is a Public Limited Company Minimum 5 DH 300,000 for private limited companies or DH 3,000,000 for public limited companies. Liability is limited to the amount contributed. About DH100 Yes if the company calls for public savings.
Societe en Nom Collectif (SNC) is a General partnership Minimum 2 No minimum capital. Liability is unlimited. About DH100 No
La Societe en Commandite Simple (SCS) is Limited partnership Minimum 2 No minimum capital. Liability is unlimited, joint and several for certain partners and limited to the amount contributed for others. About DH100 No
La Societe en Commandite par Actions( SCA) is a Partnership limited by shares 3 sleeping partners and 1 active partner. No minimum capital. Liability is unlimited, joint and several for certain partners and limited to the amount contributed for others. About DH100 No

Registration and licensing procedures
Status must be drawn up in a deed executed by a notary. Registration should be made with the Services of Registration and Stamp where the company is located. The competent Register is the First Magistrate's Court, where the company is located.
Furthermore, a negative certificate must be inquired with the Central Trade Register, in order to protect the registration name of companies, and to register with the Division of Taxes for patents. Once constituted, the company has to request for an administrative authorization with the municipality of the head office, a declaration of existence with the tax Office and a request to become affiliated to the Social Security.

Foreign exchange control
As for the regulation of exchanges, free conversion of currencies is carried out. This regulation has been implemented by the finance law of 1994. Companies have the right to transfer capital and profits free of tax, with no limitation or period of time.

Regulations concerning equity investment
A majority holding interest in the capital of an existing company or under setting-up Moroccan company is legal by capital subscription or by the purchase of issued stock.  


Foreign Direct Investment inflows in Morocco

FDI inflows 2003 2004 2005 World rank (*)
2005
FDI inflows (USD million) 2429 1070 2933 43/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

 

Last modified in 2006 - ongoing update
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