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Doing Business Guide Morocco

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Doing Business Guide Morocco Edition No. 1 January 2018 Doing Business Guide Morocco This guide has been produced by the Morison KSi Moroccan member firm About This for the benefit of their clients and associate offices worldwide who are Guide interested in doing business in Morocco. Its main purpose is to provide a broad overview of the various issues that should be considered by organisations when considering setting-up business in Morocco. The information provided cannot be exhaustive and – as underlying legislation and regulations are subject to frequent changes – we recommend anyone considering doing business in Morocco or looking to Morocco as an opportunity for expansion, should seek professional advice before making any business or investment decision. While every effort has been made to ensure the accuracy of the information contained in this guide, no responsibility is accepted for its accuracy or completeness. The information in this guide is up to date as at the edition date. For more information, please contact: Auditia www.auditia.ma Mr Adil Charradi E: [email protected] T: +212 5 22 27 41 81 113 Avenue Mers Sultan Casablanca, Morocco Disclaimer: Morison KSi is a global association of independent professional firms. Professional services are provided by individual member firms. Morison KSi does not provide professional services in its own right. No member firm has liability for the acts or omissions of any other member firm arising from its membership of Morison KSi. www.morisonksi.com USA Edition No. 1 January 2018 Contents Introduction 1 Business Structures 5 Labour and Personnel 6 International Mobility 7 Taxation System 8 Banking and Finance 10 Reporting Requirements 11 Grants and Incentives 12 Agencies Providing Assistance 13 Why Morocco? expected to reach 3000 km by Introduction 2020. Morocco has witnessed an • Ports: Casablanca is the largest accelerated process of political, port in the country, followed by economic and social reforms, and Tanger-Med, which is the largest its steady economic growth and on the Mediterranean coast of strategic geographic position make Africa in terms of capacity. With it an investment opportunity well a capacity of 8 million containers worth considering. in 2017, it acts as a trans-shipment hub, offering an ideal platform for Besides its privileged geographical serving Europe and the countries position on both the Atlantic of West Africa. Ocean and the Mediterranean Sea, Morocco enjoys significant • Airports: There are 18 intangible assets, making it an international airports, including attractive destination for foreign Casablanca airport – one of the direct investment (FDI): largest in Africa. • Airlines: Royal Air Maroc group, • Institutional, political and the most important Moroccan macroeconomic stability (stable airline, is the second largest in growth, controlled inflation and Africa. reduced debt) • Railway: Morocco is a leader in • Open economy (access to Africa in terms of rail infrastructure, a market of nearly 1 billion ranked 1st on the African continent consumers thanks to free trade and 33rd globally, according to agreements (FTAs) with the World Economic Forum’s Global European Union, USA, Turkey, etc.) Competitiveness Report 2015-2016. • Religious tolerance. • Trains: Morocco is the first African country to adopt a high-speed The country is currently positioned train (TGV). as a production and exportation hub for foreign companies, thanks Proven returns on investment to its various competitive strengths as outlined below. Morocco is an attractive country for foreign investors. The country Cost competitiveness has demonstrated excellent performance over the past few • Low wages – the average years and was ranked the second monthly wage is US$400 most FDI-attractive destination • Export incentives. in 2016, when 12% of FDI projects were initiated in Africa due to its World-class infrastructure mature market and investor-oriented strategies. France, the second According to the Global largest investor in Africa, considers Competitiveness Report 2015-2016 Morocco its ‘favourite destination by World Economic Forum, Morocco for FDI’: in 2016, 27% of French has the best infrastructure in North projects launched in Africa were Africa, ranked 3rd on the African located in Morocco. continent and 6th in the Arab world. Free trade agreements • Highways: Morocco has made major steps forward in extending Through its links with EFTA and its highway network. It has the Arab free trade zone, Morocco already reached 1800 km, and is provides investors with duty-free www.morisonksi.com Morocco 1 access to a market of 55 countries. A reassure investors that they have strong legal framework of FTAs has the right platform for entering the developed Morocco’s commercial African market relations and puts it at the • Morocco has signed almost crossroads of the main international 1,000 agreements and treaties exchange routes, linking the USA, with various African countries, Europe, Africa and the Middle East. many of which have been visited personally by King Mohammed VI Sectorial plans • The expansion of Moroccan Morocco has launched different banks throughout Africa (with strategic sectorial plans to speed a presence in over 20 countries the development of strategic now) demonstrates the role of and promising sectors such as Morocco as a major geopolitical agriculture, mining, renewable player within the continent and on According to the World Bank’s Doing energy and automotive the global economic stage. Business 2018 report,1 Morocco ranks manufacturing: 69th among 190 economies, a rise Apart from being a land of mystery from 75th in the previous edition and • Green plan – aims to revive and one of the most popular tourist 94th in 2012. The country’s current Morocco’s agriculture, which is destinations for many people from ranking as 1st in North Africa, 3rd in the main driver of the country’s every corner of the globe, Morocco Africa and 4th in the MENA region economic growth has become a favourite investment confirms the positive evolution and destination for many of the world’s continued development reported • ‘Digital Morocco’ plan – aims to global companies due to its strategic over the past 5 years by the position Morocco as a dynamic position and economic/political Moroccan government. emerging country in IT stability. • Halieutis plan – aims to improve Stable government the performance of fishing Strategic position industry by developing landing Morocco is the safest and most infrastructures and equipment Fully exploited its geostrategic stable country in the MENA region competitive advantages, Morocco for investors, having escaped the • ‘Plan Rawaj 2020’– aims to revive has gradually established itself impact of the so-called ‘Arab spring’ and improve interior trade as a business and finance hub which has seen a sharp rise in • National pact for industrial and gateway to Africa. Straddling political instability, security problems emergence – aims to support the Atlantic Ocean and the and social unrest among Morocco’s national and foreign industrial Mediterranean Sea, its proximity north African neighbours and other investment via contract between to Europe, the Middle East and Arab countries over the past 6years. the country and private sectors, the Americas make it an attractive Unaffected by this turmoil, Morocco targeting six priority sectors: jurisdiction for investors – especially has clearly maintained its economic offshoring, automobile, those keen to establish a presence and political stability, giving it a aeronautics, electronics, textile in the Middle East and North Africa competitive advantage. and agribusiness (MENA) region or Africa more generally. Morocco has also distinguished itself Morocco as a gate to Africa through its proactive focus and Strong economic growth communication policy that works to The country’s administrative integrate and involve the public in and macroeconomic stability, Morocco has witnessed a fast- the fight against terrorism. connectivity with the world and growing economy and an policy of national and continental accelerated process of political, Linguistic diversity economic expansion are assets that economic and social reforms. Its have established Morocco as a key steady economic growth makes it an Morocco’s strategic position at the force in the African continent. investment opportunity well worth crossroads of Greater Maghreb, considering and the target of several • Morocco has re-joined the African foreign investors. 1. Available at http://www.doingbusiness. Union (AU), which helps to org/~/media/wbg/doingbusiness/docu- ments/profiles/country/mar.pdf www.morisonksi.com Morocco 2 Europe and the rest of the African Main sectors The Moroccan government has continent, has contributed to its implemented two strategic plans, complex multilingual profile: Natural resources ‘Vision 2010’ and ‘Vision 2020’, to boost the sector. Vision 2020 plans • Arabic is the country’s official Phosphates comprise Morocco’s to double the size of the sector language, widely used in formal principal mineral resource, with to reach 20 million visitors and settings. an estimated 77% of the world’s establish Morocco as one of the top total phosphate reserves. Morocco destinations worldwide. • French is still widely spoken in remains the world leading producer Morocco. It is used as the second of phosphate rock and also produces Textile prominent official language other important minerals such as behind Arabic (10 million speakers) salt, copper, manganese, barium, Textile
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