Articles

Setting Up Businesses IN MOROCCO, what are the corporate strategies ?

WHAT ARE THE MOST COMMON FORMS OF BUSINESS VEHICLES USED IN MOROCCO? WHAT ARE THE MAIN REGISTRATION AND REPORTING REQUIREMENTS? SARL is the most common and easy to incorporate vehicle. The minimum capital requirement is only 10.000 dirhams (around 1.000 dollars), there is no board of directors and only one shareholder can create an SARLAU. SA (“société anonyme”) is the most regulated vehicle. It requires 5 shareholders, 3 board member, a minimum capital of 300.000 dirhams and a statutory auditor. SAS (Société par actions simplifiées) is the last vehicle to be introduced in Morocco. Like the French SAS, it is mainly regulated by its bylaws, which allows for legal engineering. It can be created by one shareholder it is called in this case SASAU and no bord of directors is required. A decree to be published soon should provide for the amount of the capital above which a statutory auditor is required. ARE THERE ANY RESTRICTIONS ON FOREIGN INVESTMENT IN MOROCCO (INCLUDING AUTHORIZATIONS REQ...
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The Complex Issues and Risks of Exchange Control in Morocco

Do Morocco have exchange rate controls i? Yes Morocco has a fixed exchange rate for the dirham. In 2018, some flexibility was introduced (a 2.5% flexible rate). How does it work? Office des Changes is regulating the exchange of dirhams to foreign currency. Any exchange of dirhams to a foreign currency must be done according to “Instruction Générale des Changes”. This exchange to foreign currency must fall under one of the following categories: Importation of goods; Importation of services; International transportation services Insurance or reinsurance Travel expenses Bank guarantees Hedging Instruments Salaries Foreign investment in equity Which industries are positively or negatively affected by the exchange rate controls? Moroccan central bank has a policy of strong dirham. Therefore, this is favorable for the cost of importation.  On the other side, exportation of goods or services are negatively affected, but the main exports of Morocco are phosphate (and Morocco has 70% of the...
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Law 95-17, a major reform to promote the use of arbitration in Morocco.

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Since the adoption of Law 95-17 on arbitration in Morocco, the country has undergone a significant reform of its legal system for dispute resolution. This law will have a significant impact on the investment climate in Morocco by encouraging the resolution of commercial disputes through arbitration, thus offering a fast, confidential, and effective alternative to civil courts. The legislature has attempted to catch up with arbitration through this reform, thus filling the gaps and omissions of Law 08-05. An independent arbitration code separate from the civil procedure code this article was published in the Moroccan newspaper Les Eco Arbitration now has a separate code, independent of the civil procedure code. For the first time in Morocco, Law 95-17 has made it possible to organize arbitration and conventional mediation in a text independent of the Civil Procedure Code. The new code has 150 articles, a significant increase from the old one, which had only 100. An extension of the scop...
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Choosing a legal structure for a small or medium-sized business: SARL vs SAS

Introduction Choosing the right legal structure is a crucial step for any business, especially for small and medium-sized enterprises (SMEs) in Morocco. The majority of Moroccan SMEs prefer the limited liability company (SARL) form, due to its simplicity and low operating costs. However, changes in the legal framework have recently introduced the simplified joint stock company (SAS), offering entrepreneurs new options and innovative prospects. This article takes an in-depth look at the advantages and specific features of the SARL and SAS, highlighting the significant differences that can influence entrepreneurs’ decisions. The SARL, the classic structure for SMEs in Morocco, is appreciated for its operational flexibility. Its operation requires only a manager, eliminating the need to set up a board of directors. This, coupled with the absence of any obligation to appoint an auditor, makes it an economical option. The SARL can be set up by a single individual or legal entity, offer...
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How Morocco is becoming the new destination of choice for industrial subcontracting.

#BRITCHAM WEBINAR How Morocco is becoming the new destination of choice for industrial subcontracting.    May 9, 2024 at 5:30 pm  M.Wassim BENZARTI In his speech, Wassim Benzarti, Managing Partner of Westfield Morocco, emphasized the need to strengthen the implementation of industrial property protection measures, which include registering trademarks, patents and geographical indications locally with the Moroccan Industrial and Commercial Property Office. Protection measures also include annual filing with customs, as well as ongoing monitoring of trademarks, he continued, noting that, contractually speaking, it is also a question of signing contracts with subcontractors, containing extensive confidentiality clauses covering all types of exchanges, and providing for “destruction” in the event of termination of the contractual relationship. The following is an overview of the issues involved: What protection provides the Moroccan legal system in regard to ...
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Casablanca Finance City (CFC): A strategic gateway to the African market

Casablanca Finance City has established itself as a leading financial hub in Africa, attracting international companies thanks to an attractive and evolving regulatory framework. Designed to rival global hubs such as Dubai, CFC offers several categories of licenses tailored to the specific needs of companies. Eligibility requirements for European Union Annual Pressure Transfers The conditions for applying to CFC change every year, influenced by international standards and particularly under pressure from the European Union. Currently, criteria include a minimum turnover of one million euros, with at least 50% of sales coming from exports. Companies must also have a physical presence in the zone, either through a local office. Office space tailored to business needs CFC offers a wide range of office space, from flat-pack offices to co-working options, starting at 5,000 DHS per month. This flexibility meets the needs of start-ups as well as large international companies looking to establ...
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From Ideas to Assets: Navigating Intellectual Property Law

By Rima Arrach Intangible assets such as intellectual property rights, customer data, and software now make up over 90% of the value of S&P 500 companies. In contrast, tangible assets, like real estate and equipment, represent only 10% of a company’s worth. Over the past two decades, the value of intellectual property assets in these companies has nearly tripled, indicating the growing importance of technology and innovation in business competition. As the global economy gradually shifts away from an industrial base to focus on services and knowledge, we enter the age of intangible assets, an increasingly integral component of corporate value. Looking ahead, Visual Capitalist suggests that the influence of technology and intangible assets, particularly intellectual property rights (IPRs), will likely continue to gain prominence in the future.  In principle, Intellectual property (IP) encompasses intangible creations of the human intellect. Such inventions can include literary a...
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The Apostille: A Legal Simplification for the International Recognition of Documents

By Hajar Tehhaf In a globalized world, cross-border exchanges—whether commercial, personal, or judicial—often require the validation of official documents from one country to another. Whether it isa company wishing to establish subsidiaries abroad, a citizen applying for a visa, or the execution of an international judicial decision, the legal recognition of documents plays a crucial role. Three mechanisms are commonly used in this context: the apostille, legalization, and, in some cases, exequatur. Although they share a common goal—ensuring the legalvalidity of documents—their procedures and fields of application differ significantly. In thisarticle, we will examine these...
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HIRING FOREIGN EMPLOYEES AND RESIDENCE PROCESS IN MOROCCO

Introduction: legal framework Companies in Morocco that wish to hire foreign employees must follow a specific procedure that is regulated by the Moroccan labor code law n o 65-99 (The “ Labor Code ”) as promulgated by Dahir no. 1-03-194 of September 11, 2003, in particular Chapter 5, Article 516, which stipulates that “ any employer wishing to recruit a foreign employee must obtain authorization from the government authority responsible for labor. This authorization is granted in the form of a visa affixed to the employment contract ”. The process of hiring foreign employees in Morocco is regulated by the Labor Code and by the following legal dispositions: [1] Order of the Minister of Employment n° 350-05 of February 9, 2005 establishing the foreign employment contract; Order of the Minister of Employment n° 1391-05 of November 25, 2005 ; Joint note on the implementation of a specific procedure for granting residence permits to foreign investors and rare skills (September 2015) by the ...
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Artificial Intelligence: A Legal and Societal Issue for Morocco and Europe

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Artificial intelligence (AI), as illustrated by applications such as Midjourney , Dall-E and the famous ChatGPT, represents a major turning point in global technological evolution. While its applications promise to revolutionize various economic, social and legal sectors, they also raise profound questions about the regulation of this technology and the fundamental rights it could affect. In particular, the issues of intellectual property, access to justice and the regulation of generative artificial intelligence are at the heart of legislators’ concerns, both in Morocco and in Europe. Artificial intelligence (AI) is unquestionably at the heart of contemporary legal concerns, particularly in terms of regulation. For several years now, it has been attracting not only scientific and economic interest, but also increased attention from legislators worldwide. The European Union was one of the first to take up this issue, with draft regulations aimed at framing the use of AI in areas a...
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