Over-Sea’s investment in Morocco:
1. The Moroccan market
2. Why invest in Morocco?
3. The support of Over-Sea’s investment in Morocco
4. Where to invest
5. Procedures of the creation of a company
6. Forms of Over-Sea’s investment in Morocco
7. The transfer of Over-Sea’s investments’ revenue
8. Morocco Tax Advantages .
INVEST MAROC MOROCCO provides its clients with a variety of legal services. Our firm is proud to advise and assist Over-Sea’s investors in all the necessary steps for the setting up of their projects, on the legal procedures as well as the sector and regional-based strategic specificities. It accompanies them on their visits to the sites the most adapted to their needs, and facilitates all their official and technical contacts.
1. The Moroccan market: Morocco is a unique country with an exceptional attraction, due to its three major advantages: an economic environment open to investments, a competitive and qualified labour, and a strategic geographical location. Morocco remains the most powerful country in terms of its reception of the FDI (Over-Sea’s Direct Investment), confirmed by its classification in the second place of the Maghreb host countries and in the fourth place of all the African countries.Several fields are under influence of the current development of the country, like the textile industry, telecommunications, electronics, construction, services, etc
2. Why invest in Morocco? Morocco is engaged in an ambitious program of structural reforms affecting many fields and focusing on the liberalization of the economy and the improvement of the companies’ competitiveness. Recently many association and free trade agreements have been signed with different countries in order to contribute to the opening up of the Moroccan’s economy. At that level, the kingdom develops a strategy of attraction of Over-Sea’s investments based on a more incentive institutional and legal framework towards international investors. The country has distinctly progressed as far as macroeconomic stability is concerned, with low rates of inflation and the control of the balance of payments which is currently doubled by a favourable evolution of the current balance because of workers’ funds’ repatriations, the revenue of tourism, and the widely facilitated credit granting. Bilateral agreements of investments’ Protection and Guarantee or Non Double Taxation were concluded with more than 30 countries. Lately, Morocco has been engaged in several reforms that allow the opening of its economy to the international environment, and mainly the signature of several association and free trade agreements. Finally, Morocco has developed the necessary infrastructure to receive FDI such as the large-scale Tangier Med port, entirely arranged industrial parks, techno parks, export and logistic free zones as well as the offshore centres.
3. The support of Over-Sea’s investment in Morocco: Morocco has prepared some significant projections in order to attract Over-Sea’s investments. Some investment’s support instruments follow the provisions adopted for the continuous improvement of business environment. They are, in fact, presented as contributions and advantages granted to investors by the Moroccan government. La Direction des Investissements Extérieurs (The External Investments Management), as well as the Regional Investment Centers constitute the required tools for the promotion, the assistance and the reception of Over-Sea’s investors. A convertibility regime for Over-Sea’s investments carried out in currencies is adopted in order to guarantee to Over-Sea’s investors the freedom to accomplish their investments in Morocco and transfer the income produced, as well as the revenue of liquidation or transfer.
4. Where to invest: All the sectors are open to Over-Sea’s investment. Offshore financial centers, exportation free zones or hydrocarbon investments are all subject to some specific regulations. Not matter what your sector of investment is; you should always prepare your business plan. It will help you define the objectives of your company and allow at the same time the establishment of all the necessary steps and funding for the accomplishment of these objectives. The INVEST MAROC MOROCCO team is always here to advise you and help you set up your project. Our primary objective is to accomplish all the legal steps as well as the related tax system concerning the creation of your company.
5. Procedures of the creation of a company:
For the creation of a company (or legal entity), there are some formalities, depending on the type of company. In summary:
1. Granting the negative certificate of origin 2. Wording of the articles of association 3. Establishment of the subscription form 4. Payment of the claimable minimum share capital 5. Statement of subscription and payment 6. Legal Publication of the incorporation. 7. Deposits of incorporation minutes and register procedures 8. Patent registration and tax identification 9. Registration in the Trade Register 10. Affiliation to the Social Security 11. Statement of the existence incorporation before the factory inspectorate
Because of the complexity of the procedures, it is advisable to consult a legal adviser. The company’s registered office can be the lawyer’s office.
6. Forms of Over-Sea’s investment in Morocco:
• Corporation of companies in accordance with the legal dispositions in force • Acquisition of share of an under construction or an existing company’s capital. • Subscription in the increase of an existing company’s capital • Creation of a branch of a liaison office or a permanent establishment. • Acquisition of Moroccan stocks and shares. • Contribution by partner’s current account in species or in commercial credits. • Credits in currency contracted under the international capital market’s conditions. • Contribution in kind (plots, constructions, stocks and shares, contribution in industry… originally funded in currencies).
These operations include all the economic sectors; however, investors shall comply with the regulations in force in the sector they have opted for.
7. The transfer of Over-Sea’s investments’ revenue :
The Moroccan exchange regulations considers any kind of investment carried out by Over-Sea’s individual or legal entities, be it either resident or not, as a Over-Sea’s investment.
The convertibility regime guarantees the concerned investors total freedom for the fulfilment of their investment operations in Morocco, the transfer of these investments’ incomes, and the repatriation of the revenue of their investments’ liquidation or transfer.
Consequently, the approved intermediaries (financial entities) are entitled to transfer for the benefit of the concerned investors, the incomes produced by their investments in Morocco, such as:
– Dividends or shares of benefit distributed by the Moroccan companies - Benefit carried out by the branches of Over-Sea’s companies in Morocco. - Rental incomes. - Interests produced by loans and current accounts of contracted partners in accordance with the exchange regulations in force.
These incomes can be transferred with no time or amount limits after paying all due taxes in Morocco.
8. Morocco Tax Advantages: In order to encourage Over-Sea’s investment in the country, Moroccan government grant a variety of tax advantages to Over-Sea’s investors. They are, in fact, seen through the exemptions and discounts given to encourage the sector. (For further information)