Morocco: Operating a Business

Legal Forms of Companies

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.

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.

Principle: The court appoints a receiver and controllers. The receiver contributes to managing the business. He draws up an economic, accounting and company balance sheet and offers a recovery package by considering possible offers. He meets the creditors to make offers to them.
The court then decides either on a plan of continuation, or a plan of transfer, or a compulsory liquidation.
Minimum Debt-to-Capital Ratio Triggering Liquidation: None
Bankruptcy Laws: Book V of the Commercial law of 1996, inspired from the French legislation.
Reorganization and Rehabilitation Laws: Book V of the Commercial law of 1996, inspired from the French legislation.

	2010
Labor Force	11,630,000

Source: CIA - The world factbook

Source: UN - United Nations

Employed Persons, by Occupation (% of Total Labor Force)	2007
Agriculture, forest and fishing	42.1%
Industry and crafts	12.7%
Buildings and public works	8.4%
Trade	12.5%
Transport. warehouses and communication	4.0%
General administration and social services	10.2%
Other services	10.1%

Opening Hours
Legal Weekly Duration: 44 hours per week for non-agricultural sector.
48 hours per week for agricultural sector.
Maximum Duration: Not more than 10h per day exept for waiver
Night Hours: From 21h to 6h

Working Rest Day: Sundays generally
Paid Annual Vacation: One and a half day per month of effective work, increased with seniority
Retirement Age: 60 years generally and 55 years for miners.
Child Labor and Minimum Age For Employment: Forbidden for less than 15 years
Informal Labor Market: The informal sector is important in Morocco. According to the last survey in 2004, it represents 39% of the non-agricultural employment.

Minimum Wage: 1,841.84 dirhams per month
Average Wage: Average monthly gross earnings in Marocoo is MAD 3,780 (USD 474).
Other Forms of Pay
Pay For Overtime: Increase by 25%
Pay For Rest Days Worked: +25% during the day and 50% during the night
Pay For Night Hours: No increase
Pay For Overtime at Night: Increase by 50%

The Areas Covered: Sickness-Maternity, Death, Handicap, Old age
Contributions: Contributions Paid By the Employer: 18.10 %
Contributions Paid By the Employee: 6.29%
Competent Organization: National Social Security Fund

Method of Recruitment: Majority of recruitments in Morocco are done by co-option or network. The word of the mouth is thus essential.
Advertisements in the newspapers are always reliable, while those on the Internet are developing rapidly.
Recruitment Agencies: There are many recruitment firms, most of theme being French-speaking.
On the other hand, one does not fine large international firms.
Link to a directory of recruitment firms.
Recruitment Websites: ReKrute
Employment exchange
Career option
Bayt.com: Source for Jobs in the Middle East
Job Rapido

Type of Contract: Employment regulations have been adopted in July 2003 and is in force since June 2004. Employment contract is governed by legal provisions and to a lesser extent by collective agreements and individual negotiations.
The employment contract form is rather rigid. Three types of contracts coexist: the permanent contract, the fixed term contract and the contract to complete a given work.

Breach of Contracts
Retirement: Possible
Dismissals: The new type justifies only dismissal for serious error or plurality of disciplinary actions.
In all the other cases, dismissal will be regarded as incorrect and will require payment of compensation of prior notice of dismissal.
Other Possible Methods: Employee's approval expressed by a signed and certified resignation letter.
Agreement between the employee and the employer (meant for the factory inspector) cancelling the contract
Expiry of the contract or completion of work aimed at in the contract for a fixed term contract (involves damages).
Labor Laws: Employment regulations of 2004

Cases of Dispute: Incorrect dismissals, delay in the payment of salaries, non-respect of the work legislation
Legal Framework: Employment regulations of 2004
Procedure: The first attempt at conciliation is done with the factory inspector.
If this fails, the governor of the province creates a provincial commission of investigation and conciliation and later on a National Commission in case the previous commissions do not succeed.

Legal Framework: Individual conflicts are settled in accordance with the legislation in force.
Employment regulations aims for conciliation of collective conflicts, in the event of failure, it takes recourse to an arbitration. The verdict may further lead to an appeal before the Supreme court.
Competent Legal Body: Inspection of Work
Delegation of Work to the Prefecture

Social Dialogue and Involvement of Social Partners: Three federations stand out among the 17 existing trade unions: Moroccan Union of Work (UMT), the Democratic Confederation of Work (CDT), and General union of the Workers of Morocco (UGTM).
Their negotiation powers are overall weak because of the rupture and a rather cloudy management, but they are rooted in the company.
Unionization Rate: 6% (official figures)
Unions: Democratic Confederation of Work
General Union of the workers of Morocco (In French)
Moroccan Labour Union
Regulation Bodies: Ministry for Employment and Professional Training
Index Mundi
Social Security National Office

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