Doing business

Morocco

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
S.A.R.L.(private limited company) 300,000 MAD	5 minimum Responsability is limited to the amount of contributions.
S.A.(public limited company) 3,000,000 MAD for open public limited companies	5 minimum Responsability is limited to the amount of contributions.
Partnership no minimum capital.	2 minimum Responsability is unlimited.
Limited Partnership 10,000 MAD	Between 1 and 50 Responsability is limited
Partnership limited by shares no minimum capital.	3 sleeping partners and one active partner. Responsability is unlimited and several for some and limited to the amount of contributions for others.

Business setup procedures

Setting up a company	Morocco	Middle East & North Africa
Procedures (number)	6.0	8.1
Time (days)	12.0	20.0

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Morocco.
Trade Register
The competent organization: The Regional Investment Center.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	2,487	1,952	1,304
FDI stock (millions USD)	39,387.9	40,719.4	42,023.1
Performance Index*, ranking on 141 economies	88	94	-
Potential Index**, ranking on 141 economies	96	-	-
Number of Greenfield investments***	93	49	-
FDI inwards (in % of GFCF****)	9.0	6.1	-
FDI stock (in % of GDP)	45.5	46.0	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Morocco

Strong points: Morocco's strengths are:
- A legal framework and assistance measures very favorable to the investors;
- Still relatively low salaries;
- A Strategic position, not far from Europe;
- A Young and relatively well trained population;
- Strong growth.
Weak points: Morocco's weaknesses are:
- A still relatively limited Domestic market;
- A country still very dependent on agriculture and vulnerable to the prices of hydrocarbons.
Government measures to motivate or restrict FDI: The government adpoted the "Investment Charter" in 1995. This charter mainly provides company exemptions for VAT and corporate tax for 5 years.
In the industrial sector, the Emergence Plan creates infrastructures which offer turnkey premises.
Bilateral investment conventions signed by Morocco: Morocco has concluded agreements with 51 countries including France, Spain, Egypt, Italy, Lebanon, Libya, Portugal, Tunisia and Turkey for guarantee of overseas investments against every risk of nationalization and compulsory purchase. Several of these agreements can be downloaded on the web site of the UNCTAD. Those define the framework of protection of overseas investments for each signatory country.
Besides, the Association Agreement between the EU and Morocco, effective in March 2000, envisages also, with article 50: "establishment of a legal framework supporting investment, if necessary, by the conclusion of agreements of protection of investments and agreements intended to avoid double taxation between Morocco and the Member States".

Procedures relative to foreign investment

Freedom of establishment: Guaranteed except for the agricultural sector
Acquisition of holdings: Majority acquisition of interest in an existing or forming Moroccan company, is authorised by way capital subscription or acquisition of already issued securities.
Obligation to declare: Investment system in Morocco is very open as investors do not have to obtain prior approval: they simply have to send the Foreign Exchange Office a report in the six months following the completion of the operation.
Competent organization for the declaration: Foreign exchange office
Requests for specific authorizations: The financial sector has specific regulations, that of hydrocarbons as well as for free zones.

Finding assistance for further information

Investment aid agency: Department of Investments (In French)
French Agency of Development
ANIMA Investment Network
Medibtikar
Other useful resources: Department of Investments
Economic Developments and Prospects in Morocco - African Economic Outlook