Doing Business 2018 Morocco Economy Pro le of Morocco Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Morocco Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Middle East & North DB 2018 Rank Region 190 1 Africa Morocco Income Category Lower middle income 69 DB 2018 Distance to Frontier (DTF) Population 35,276,786 0 100 GNI Per Capita (US$) 2,850 67.91 City Covered Casablanca DB 2018 Distance to Frontier (DTF) 0 100 77.02: Spain (Rank: 28) 76.13: France (Rank: 31) 67.91: Morocco (Rank: 69) 56.72: Regional Average (Middle East & North Africa) 56.22: Egypt, Arab Rep. (Rank: 128) Page 3   aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Morocco Ease of Doing Business in Middle East & North DB 2018 Rank Region 190 1 Africa Morocco Income Category Lower middle income 69 DB 2018 Distance to Frontier (DTF) Population 35,276,786 0 100 GNI Per Capita (US$) 2,850 67.91 City Covered Casablanca DB 2018 Distance to Frontier (DTF) 0 100 77.02: Spain (Rank: 28) 76.13: France (Rank: 31) 67.91: Morocco (Rank: 69) 56.72: Regional Average (Middle East & North Africa) 56.22: Egypt, Arab Rep. (Rank: 128) 46.71: Algeria (Rank: 166) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Morocco 1 17 25 28 35 57 55 62 65 72 86 82 Rank 105 109 134 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Morocco 100 92.46 85.72 79.73 81.12 80 76.52 64.35 61.85 58.33 60 DTF 45.00 40 34.03 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:-3.19 Change:-0.84 Change:0.00 Investors Change:+1.98 Borders Change:0.00 Change:+0.14 Change:+1.71 Permits Change:0.00 Change:0.00 Change:-0.04 Starting a Business Page 4   a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:-3.19 Change:-0.84 Change:0.00 Investors Change:+1.98 Borders Change:0.00 Change:+0.14 Change:+1.71 Permits Change:0.00 Change:0.00 Doing Business 2018 Morocco Change:-0.04 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Morocco Standardized Company Legal form Société à Responsabilité Limitée (SARL) Paid-in minimum capital requirement MAD 0 City Covered Casablanca Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Procedure – Men (number) 4 7.7 4.9 1.00 (New Zealand) Time – Men (days) 9 18.6 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 8.0 18.7 3.1 0.00 (United Kingdom) Procedure – Women (number) 4 8.4 4.9 1.00 (New Zealand) Time – Women (days) 9 19.3 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 8.0 18.7 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 9.9 8.7 0.00 (113 Economies) Figure – Starting a Business in Morocco and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.28: France (Rank: 25) 92.46: Morocco (Rank: 35) 86.65: Spain (Rank: 86) 84.53: Egypt, Arab Rep. (Rank: 103) 82.05: Regional Average (Middle East & North Africa) 77.54: Algeria (Rank: 145) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Morocco – Procedure, Time and Cost Time Cost 9 7 8 6 ost (% of income per capita) 7 5 6 Time (days) 5 4 4 3 3 Page 6   2 2 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Morocco Figure – Starting a Business in Morocco – Procedure, Time and Cost Time Cost 9 7 8 6 Cost (% of income per capita) 7 5 6 Time (days) 5 4 4 3 3 2 2 1 1 0 0 1 2 3 *4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Morocco – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a Certi cate of availability of the company name (Certi cat Less than one day DH 162 Négatif) (online procedure) Agency : Regional Investment Center (Centre Regional d'Investissement) A certi cate of availability of the company name must be obtained. One may apply for it in person or online at: www.directinfo.ma. 2 Register with the Tribunal of Commerce, the Tax Authorities, Social 7 days Fixed fee of DH 1,000 Security and the patent tax at the Regional Investment Center (Centre + DH 200 Regional d'Investissement) (registration fee) + Agency : Regional Investment Center (Centre Regional d'Investissement) DH 350 (registration at commercial The applicant can download a single registration form (formulaire unique registry) + DH 150 declaration de création d’entreprise) online. With the completed form, the publication fee (DH applicant must le the incorporation documents and pay the incorporation fees, publication fees and stamp duty at the Centre Regional 8-9/ line in business d’Investissement (CRI). The stamp duty can also be paid for at a kiosk, paper, DH 4/line) + bookstore or post o ce. DH 110 (stamp duty) The CRI centralizes the following procedures: - Deposit of bylaws and registration at the Tribunal of Commerce and the Company Registrar - “Patente” tax number - Two announcements: in a legal journal and in the O cial Bulletin - Declaration of scal existence - Social security a liation - Legalization of legal books Page 7   (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Morocco Details – Starting a Business in Morocco – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a Certi cate of availability of the company name (Certi cat Less than one day DH 162 Négatif) (online procedure) Agency : Regional Investment Center (Centre Regional d'Investissement) A certi cate of availability of the company name must be obtained. One may apply for it in person or online at: www.directinfo.ma. 2 Register with the Tribunal of Commerce, the Tax Authorities, Social 7 days Fixed fee of DH 1,000 Security and the patent tax at the Regional Investment Center (Centre + DH 200 Regional d'Investissement) (registration fee) + Agency : Regional Investment Center (Centre Regional d'Investissement) DH 350 (registration at commercial The applicant can download a single registration form (formulaire unique registry) + DH 150 declaration de création d’entreprise) online. With the completed form, the publication fee (DH applicant must le the incorporation documents and pay the incorporation fees, publication fees and stamp duty at the Centre Regional 8-9/ line in business d’Investissement (CRI). The stamp duty can also be paid for at a kiosk, paper, DH 4/line) + bookstore or post o ce. DH 110 (stamp duty) The CRI centralizes the following procedures: - Deposit of bylaws and registration at the Tribunal of Commerce and the Company Registrar - “Patente” tax number - Two announcements: in a legal journal and in the O cial Bulletin - Declaration of scal existence - Social security a liation - Legalization of legal books When submitting the form and all documents, the entrepreneur must include the text for publication in both publications (that is, the legal newspaper and the O cial Gazette). The text must be in Arabic and typed. The CRI coordinates the publication process. Although the announcement is published in the O cial Gazette in 30 days, a receipt from submitting the publication is enough for ling the registration documents with the Tribunal of Commerce. In about a week, the promoter receives the “patente,” the scal identi cation, the commercial registration certi cate, legal books, and the social security registration (CNSS registration). As a new service, the entrepreneur can request to be noti ed by text message when the le is ready. 3 Make a company stamp 1 day DH 200 Agency : Sealmaker The company obtains a company seal from a sealmaker. 4 Register the company's employees with Social Security Less than a day no charge Agency : Social Security Institute (Caisse Nationale de Sécurité Sociale - CNSS) (online and simultaneous with Once the company has been incorporated, business founders must register previous the company's employees with Social Security (Caisse Nationale de Sécurité procedure) Sociale - CNSS) . This can be done through a visit to CNSS' o ces or online at the Damancom portal (http://www.damancom.ma/). Applies to women only. Page 8   Agency : Sealmaker Doing The company Business a company seal from a sealmaker. obtainsMorocco 2018 4 Register the company's employees with Social Security Less than a day no charge Agency : Social Security Institute (Caisse Nationale de Sécurité Sociale - CNSS) (online and simultaneous with Once the company has been incorporated, business founders must register previous the company's employees with Social Security (Caisse Nationale de Sécurité procedure) Sociale - CNSS) . This can be done through a visit to CNSS' o ces or online at the Damancom portal (http://www.damancom.ma/). Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the Page 9   smallest size available will be installed or built. Liability and insurance regimes (0-2) Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Morocco Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 10   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Morocco Standardized Warehouse Estimated value of warehouse MAD 1,363,175.20 City Covered Casablanca Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Procedures (number) 13 16.2 12.5 7.00 (Denmark) Time (days) 88.5 132.1 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 3.5 4.3 1.6 0.10 (5 Economies) Building quality control index (0-15) 13.0 11.8 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Morocco and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.73: Morocco (Rank: 17) 79.29: France (Rank: 18) 71.43: Egypt, Arab Rep. (Rank: 66) 63.50: Spain (Rank: 123) 59.84: Regional Average (Middle East & North Africa) 58.89: Algeria (Rank: 146) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Morocco – Procedure, Time and Cost Time Cost 2.5 80 70 2 Cost (% of warehouse value) 60 Time (days) 1.5 50 40 1 30 20 0.5 10 0 0 1 2 3 4 5 6 7 8 *9 10 11 * 12 13 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 11   component indicators. Doing Business 2018 Morocco Figure – Dealing with Construction Permits in Morocco – Procedure, Time and Cost Time Cost 2.5 80 70 2 Cost (% of warehouse value) 60 Time (days) 1.5 50 40 1 30 20 0.5 10 0 0 1 2 3 4 5 6 7 8 *9 10 11 * 12 13 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Morocco and comparator economies – Measure of Quality 16 14.0 14.0 14 13.0 11.8 12 11.0 10.0 Index score 10 8 6 4 2 0 Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Details – Dealing with Construction Permits in Morocco – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain cadastral plan and location map 2 days MAD 125 Agency : Agence Nationale de Consérvation Foncière et du Cadastre The cadastral plan contains the company name; the coordinates of the land plot, including north-south orientation; the registration number of the property title; the cadastral map; and the situation plan. 2 Obtain an urban certi cate (note de renseignements) 0.5 days MAD 450 Agency : Land Registry (Agence Urbaine de Casablanca) The urban certi cate speci es the intended purpose of the land. All documents obtained in the previous procedure must be submitted along with a proof of ownership -- an extract from the land registry. Page 12   Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Doing Business 2018 Morocco Details – Dealing with Construction Permits in Morocco – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain cadastral plan and location map 2 days MAD 125 Agency : Agence Nationale de Consérvation Foncière et du Cadastre The cadastral plan contains the company name; the coordinates of the land plot, including north-south orientation; the registration number of the property title; the cadastral map; and the situation plan. 2 Obtain an urban certi cate (note de renseignements) 0.5 days MAD 450 Agency : Land Registry (Agence Urbaine de Casablanca) The urban certi cate speci es the intended purpose of the land. All documents obtained in the previous procedure must be submitted along with a proof of ownership -- an extract from the land registry. 3 Submit scanned documents online and obtain appointment 1 day MAD 300 Agency : CasaUrba The architect will log in to CasaUrba (www.casaurba.ma) to obtain the list of required documents for his project. all required documents are scanned and uploaded in the system for veri cation of completeness. Casaurba is only accessible to architects. Within 24 hours, the architect is informed if there are any missing documents. At the same time, the architect is noti ed of the date that the hard copy of the documents should be brought to the one-stop shop for approval. The cost is as follows: MAD 150 for small projects and MAD 300 for larger projects (including the Doing Business case study warehouse). 4 Deposit the hard copies of all documents and obtain building permit 15 days MAD 30,663 Agency : Municipal Authority, Prefecture Authorities, Land Registry (Agence Urbaine) and Fire Department (Protection Civile) The architect is required to bring all documents in paper based version to the commission. At the one-stop shop, documents are deposited, the request electronically led, and an issuance date assigned within 15 days. Once the commission has approved the application, the architect is informed by Casaurba of the decision. The le submitted to obtain a building permit includes about eight architectural plans, land registry plans, the land ownership certi cate provided by Land Registry, and application forms containing general information about the construction project and a description of the construction project. A set of the application le is sent to the Fire Department (Protection Civile), Prefecture Authorities, and Land Registry (Agence Urbaine), and LYDEC (Lyonnaise Des Eaux de Casablanca). The fees are paid at the municipality once the building permit has been granted to the project owner. Each architectural study plan is subject to the following payments: • MAD 50.00 for stamp duties • MAD 2.00 per sq. m. of construction for re safety • MAD 20.00 per sq. m. for the permit • Approximately MAD 2,000.00 for occupancy permit (frais d'occupation de Page 13   The cost is as follows: MAD 150 for small projects and MAD 300 for larger Doing projects Business 2018 the (including Doing Business case study warehouse). Morocco 4 Deposit the hard copies of all documents and obtain building permit 15 days MAD 30,663 Agency : Municipal Authority, Prefecture Authorities, Land Registry (Agence Urbaine) and Fire Department (Protection Civile) The architect is required to bring all documents in paper based version to the commission. At the one-stop shop, documents are deposited, the request electronically led, and an issuance date assigned within 15 days. Once the commission has approved the application, the architect is informed by Casaurba of the decision. The le submitted to obtain a building permit includes about eight architectural plans, land registry plans, the land ownership certi cate provided by Land Registry, and application forms containing general information about the construction project and a description of the construction project. A set of the application le is sent to the Fire Department (Protection Civile), Prefecture Authorities, and Land Registry (Agence Urbaine), and LYDEC (Lyonnaise Des Eaux de Casablanca). The fees are paid at the municipality once the building permit has been granted to the project owner. Each architectural study plan is subject to the following payments: • MAD 50.00 for stamp duties • MAD 2.00 per sq. m. of construction for re safety • MAD 20.00 per sq. m. for the permit • Approximately MAD 2,000.00 for occupancy permit (frais d'occupation de domaine public) 5 Hire licensed technical supervisor 1 day MAD 5,000 Agency : Licensed Technical Supervisor A private “Bureau de controle” must be hired to conduct the inspections during construction. The price is negotiable but for a warehouse construction such as the one in the Doing Business case study, the cost will not exceed MAD 5,000. 6 Notify Municipality of commencement of work 1 day no charge Agency : Municipality According to Article 5 of Appendix 6, building permit sample, issued in the Decree Nº2-13-424 of May 24, 2013 and published in the O cial Gazette No. 6174 of 1 August 2013 "the applicant is required to inform the relevant departments of the municipality by mail within 48 hours of the commencement of work. BuildCo informs the Commune through an ‘avis d’ouverture de chantier’ of the commencement of construction. 7 Receive random inspection from the controlleur de la commune 1 day no charge (municipal inspector) Agency : Municipality The Controlleur de la commune will conduct one random inspection during the construction phase to verify there is a construction permit. 8 Architect submits nal report to Municipality that the warehouse was 1 day no charge built according to the approved plans Agency : Municipality In November 2013, Morocco adopted Decree N°2-13-424 forming the General Code of Construction and the Joint Order N°3214.13. As a result of the decree, BuildCo no longer has to receive a nal inspection from the Page 14   relevant government authorities. Instead, the architect must le a report The Controlleur de la commune will conduct one random inspection during Doing the construction Business 2018 phase to verify there is a construction permit. Morocco 8 Architect submits nal report to Municipality that the warehouse was 1 day no charge built according to the approved plans Agency : Municipality In November 2013, Morocco adopted Decree N°2-13-424 forming the General Code of Construction and the Joint Order N°3214.13. As a result of the decree, BuildCo no longer has to receive a nal inspection from the relevant government authorities. Instead, the architect must le a report (attestation) that the building has been built according to the approved plans. 9 Apply for water and sewerage connection 1 day no charge Agency : LYDEC (Lyonnaise Des Eaux Casablanca) As of June 2010 the request to be connected to water and sewage is done at the LYDEC (Lyonnaise Des Eaux de Casablanca) in one same dossier ( le) after construction. 10 Receive water and sewerage inspection from LYDEC 1 day no charge Agency : LYDEC (Lyonnaise Des Eaux Casablanca) LYDEC (Lyonnaise Des Eaux Casablanca) inspects the site to estimate the connection and installation costs. LYDEC inspectors usually visit the site within 2 weeks of processing the application for the water and sewerage connection. 11 Obtain water and sewerage connection 57 days MAD 5,000 Agency : LYDEC (Lyonnaise Des Eaux Casablanca) For the water supply connection, LYDEC uses the following pricing formula: (PGI) = KO x I/IO x (Q-35), where KO = MAD 917.10 per cubic meter per day; I/IO = revision indicia; and Q = 1 cubic meters/day x 100 sq. m. The applicable value added tax on PGI is 14%. Obtain certi cate of conformity (certi cat de conformité) 7 days no charge 12 Agency : Municipality The mayor issue a certi cate of conformity based on the document that the architect stating that the building was constructed according to the approved plans. 13 Register the building with the Agence Nationale de Consérvation 7 days MAD 6,816 Foncière et du Cadastre Agency : Agence Nationale de Consérvation Foncière et du Cadastre Although not legally required, owners generally register the building with the Land Registry (Agence Nationale de Consérvation Foncière et du Cadastre) to increase the asset value. No registration for tax purposes is necessary. The cost is 0.5% of the declared value of the construction. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Morocco – Measure of Quality Answer Score Building quality control index (0-15) 13.0 Quality of building regulations index (0-2) 2.0 Page 15   Takes place simultaneously with previous procedure. Doing Business 2018 Morocco Details – Dealing with Construction Permits in Morocco – Measure of Quality Answer Score Building quality control index (0-15) 13.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge; In o cial gazette. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) external engineer or rm; Unscheduled inspections; Inspections at various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, external 2.0 accordance with the approved plans and regulations? (0-2) engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 2.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Page 16   Liability Doing 2018 regimes and insurance Business index (0-2) Morocco 2.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover Architect or 1.0 possible structural aws or problems in the building once it is in use (Latent Defect engineer; Liability Insurance or Decennial Insurance)? (0-1) Professional in charge of the supervision; Construction company; Insurance is commonly taken in practice. Professional certi cations index (0-4) 3.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering; Being a registered architect or engineer. What are the quali cation requirements for the professional who supervises the University 1.0 construction on the ground? (0-2) degree in engineering, construction or construction management; Being a registered architect or engineer. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining Page 17   The warehouse: architect or engineer. Doing Business 2018 Morocco Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 18   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Morocco Standardized Connection Price of electricity (US cents per kWh) 12.8 Name of utility Lydec City Covered Casablanca Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Procedures (number) 5 4.8 4.7 2 (United Arab Emirates) Time (days) 49 81.4 79.1 10 (United Arab Emirates) Cost (% of income per capita) 1791.6 780.3 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 6 4.2 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Morocco and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 85.89: France (Rank: 26) 82.99: Spain (Rank: 42) 76.52: Morocco (Rank: 72) 71.24: Egypt, Arab Rep. (Rank: 89) 67.21: Regional Average (Middle East & North Africa) 60.56: Algeria (Rank: 120) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Morocco – Procedure, Time and Cost Time Cost 2000 40 Cost (% of income per capita) 1500 30 Time (days) 1000 20 500 10 Page 19   getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Morocco Figure – Getting Electricity in Morocco – Procedure, Time and Cost Time Cost 2000 40 Cost (% of income per capita) 1500 30 Time (days) 1000 20 500 10 0 0 1 *2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Morocco and comparator economies – Measure of Quality 9 8 8 8 7 6 6 Index score 5 5 4.2 4 3 3 2 1 0 Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Details – Getting Electricity in Morocco – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Lydec and await estimate 9 calendar days MAD 0 Agency : Lydec Along with the application, the client needs to submit the following: • certi ed copy of the plans • copy of lease or purchase agreement • 3 sketches of the electrical installation signed and stamped by a Lydec accredited (along with copy of accreditation card) Page 20   • Copy of national ID or residency card or passport (for individuals) ; copy of Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Doing Business 2018 Morocco Details – Getting Electricity in Morocco – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Lydec and await estimate 9 calendar days MAD 0 Agency : Lydec Along with the application, the client needs to submit the following: • certi ed copy of the plans • copy of lease or purchase agreement • 3 sketches of the electrical installation signed and stamped by a Lydec accredited (along with copy of accreditation card) • Copy of national ID or residency card or passport (for individuals) ; copy of the commercial register or trading license (for companies) • Establishing shot (« plan de situation ») showing the expected location of the unit substation and indicating the capacity of the transformer that the client expects to install, along with the expected subscribed capacity 2 Obtain external inspection by Lydec 1 calendar day MAD 0 Agency : Lydec Lydec’s technical service inspects the site to check the expected location of the substation and the method of connecting the warehouse to the Medium- Voltage (MV) network. Lydec then prepares an estimate of the connection fees. 3 Hire accredited private rm to design and carry out external works 25 calendar days MAD 475,000 Agency : Registered electrician/ electrical contractor If the client’s needs are over 50 kVA and their expected consumption more than 170,000 kWh a year, the client is advised to buy their energy from the medium-voltage network and transform it at their site. Otherwise, a direct connection to the 220/380 V low-voltage network is preferred. In order to obtain approval of the electrical construction project, the client’s electrician accredited by Lydec to work on the MV network, will need to submit the following documents to the utility:: • 4 copies of the engineering civil part of the project and of the electrical equipment of the substation • 4 copies of the drawings for the protection of the substation part (if a MV transformer is needed) When the client has paid at least 50% of the fees, and after they have received approval of the plans, Lydec will send the client’s electrician a validated copy of the plans. After the full amount has been settled, Lydec will allow the latter to start the civil engineering and electrical equipment works that Lydec will also supervise. Page 21   To make sure the substation works properly at turn-on, Lydec supervises the Voltage (MV) network. Lydec then prepares an estimate of the connection Doing fees. Business 2018 Morocco 3 Hire accredited private rm to design and carry out external works 25 calendar days MAD 475,000 Agency : Registered electrician/ electrical contractor If the client’s needs are over 50 kVA and their expected consumption more than 170,000 kWh a year, the client is advised to buy their energy from the medium-voltage network and transform it at their site. Otherwise, a direct connection to the 220/380 V low-voltage network is preferred. In order to obtain approval of the electrical construction project, the client’s electrician accredited by Lydec to work on the MV network, will need to submit the following documents to the utility:: • 4 copies of the engineering civil part of the project and of the electrical equipment of the substation • 4 copies of the drawings for the protection of the substation part (if a MV transformer is needed) When the client has paid at least 50% of the fees, and after they have received approval of the plans, Lydec will send the client’s electrician a validated copy of the plans. After the full amount has been settled, Lydec will allow the latter to start the civil engineering and electrical equipment works that Lydec will also supervise. To make sure the substation works properly at turn-on, Lydec supervises the works to check they are carried out according to the rules. When these are nished, Lydec completes the turn-on in the presence of the rm in charge of the external works. The client or their electrician will need to buy the material for the external works themselves. Any excavation permit however, is obtained by Lydec directly from the city administration ("Commune Urbaine") or the Ministry of Public Works. 4 Obtain certi cation of low-voltage works by approved private entity 7 calendar days MAD 6,000 Agency : Control o ce When the works are completed, a (private) control o ce accredited by the Ministry of Labor checks the LV installation, including the entire internal wiring, and issues a certi cate necessary to obtain a nal electricity connection. 5 Sign supply contract and obtain part of the works and nal connection 8 calendar days MAD 7,461.51 by Lydec Agency : Lydec No o cial application form is necessary for subscribing to electricity. The client needs only submit the following to Lydec, on paper, by fax, or by e-mail : • Completion certi cate of the building • Certi cate of control of LV installation (obtained from body approved by Ministry of Labor) Page 22   • Application request for subscription to MV network wiring, and issues a certi cate necessary to obtain a nal electricity Doing connection. Business 2018 Morocco 5 Sign supply contract and obtain part of the works and nal connection 8 calendar days MAD 7,461.51 by Lydec Agency : Lydec No o cial application form is necessary for subscribing to electricity. The client needs only submit the following to Lydec, on paper, by fax, or by e-mail : • Completion certi cate of the building • Certi cate of control of LV installation (obtained from body approved by Ministry of Labor) • Application request for subscription to MV network • Subscribed capacity (in kVA) • Personal and professional information • Contact details The (meter) current transformer is provided by Lydec. Once the subscription le is submitted and all corresponding fees have been settled, Lydec will provide the client with the metering equipment and the client will be able to sign a supply contract. Turn-on of electricity is done only upon signing of a supply contract and submission of a completion certi cate of the building. Takes place simultaneously with previous procedure. Details – Getting Electricity in Morocco – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 0.6 System average interruption frequency index (SAIFI) 2.3 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Page 23   Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes Takes place simultaneously with previous procedure. Doing Business 2018 Morocco Details – Getting Electricity in Morocco – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 0.6 System average interruption frequency index (SAIFI) 2.3 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online https://client.lydec. ma/site/fr/web/gues t/ge/lire-votre- facture Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 24   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Morocco Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value MAD 1,363,175.20 City Covered Casablanca Page 25   Middle East & OECD high Doing Business 2018 Morocco Standard Property Transfer Property value MAD 1,363,175.20 City Covered Casablanca Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Procedures (number) 6 5.7 4.6 1.00 (4 Economies) Time (days) 22 30.3 22.3 1.00 (3 Economies) Cost (% of property value) 6.4 6.0 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 15.5 13.4 22.7 29.00 (Singapore) Figure – Registering Property in Morocco and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.88: Spain (Rank: 53) 64.35: Morocco (Rank: 86) 60.91: Regional Average (Middle East & North Africa) 60.69: France (Rank: 100) 55.50: Egypt, Arab Rep. (Rank: 119) 43.83: Algeria (Rank: 163) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Morocco – Procedure, Time and Cost Time Cost 4.5 20 4 3.5 Cost (% of property value) 15 3 Time (days) 2.5 10 2 1.5 5 1 0.5 0 0 1 2 3 4 *5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 26   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Morocco Figure – Registering Property in Morocco – Procedure, Time and Cost Time Cost 4.5 20 4 3.5 Cost (% of property value) 15 3 Time (days) 2.5 10 2 1.5 5 1 0.5 0 0 1 2 3 4 *5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Morocco and comparator economies – Measure of Quality 30 25 24.0 22.5 20 Index score 15.5 15 13.4 10 7.0 7.0 5 0 Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Details – Registering Property in Morocco – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Conduct due diligence at the Commercial Court Registry 2 days MAD 20 Agency : Commercial court registry The notary obtains the modèle J form (also called modèle 7) to check the selling company's legal standing at the commercial court registry and to ensure that it is not in a state of insolvency, liquidation or receivership. The notary should insert a clause in the deed of assignment on the subject. 2 Complete due diligence at the Land Registry 1 day MAD 50 Agency : Land Registry ("Conservation Foncière") The notary veri es whether or not there is an open le for the selling company le with the Land registry (Conservation fonciere) where the Page 27   Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Doing Business 2018 Morocco Details – Registering Property in Morocco – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Conduct due diligence at the Commercial Court Registry 2 days MAD 20 Agency : Commercial court registry The notary obtains the modèle J form (also called modèle 7) to check the selling company's legal standing at the commercial court registry and to ensure that it is not in a state of insolvency, liquidation or receivership. The notary should insert a clause in the deed of assignment on the subject. 2 Complete due diligence at the Land Registry 1 day MAD 50 Agency : Land Registry ("Conservation Foncière") The notary veri es whether or not there is an open le for the selling company le with the Land registry (Conservation fonciere) where the property is located. If one already exists, the notary will verify that all relevant information is accurate and where applicable, update it with the information that both managers have the power to sell or buy the property at a de nite cost and that their tenure as manager is still valid. The notary also veri es that the selling SARL is the owner and the property is not encumbered. The notary can check the encumbrances on the property online. 3 The sale contract is signed by both parties and authenticated by the 1 day 0.75% to 1% of the notary transaction value Agency : Notary (notary fees) + 600 dirhams in stamps The signatures of the parties in the sales deed are only certi ed by the public (20 dirhams per notary if a notarial deed is established. Since January 2011, the stamp duty is page, 5 pages, 6 paid directly at the Land registry. It is no longer necessary to purchase the copies) stamps and stamp each page as previously required. The deed can be prepared by the parties, in some cases assisted by their lawyers. At this point the parties will usually pay all fees and taxes to the notary, who will then pay all taxes and fees to the authorities on behalf of the parties. The documentation shall include: • The sales agreement signed by the parties • ID cards of each party; if the parties’ signatures are led with the local authorities, only a certi ed copy of their ID cards and the date and number under which the deed was led will be required 10% VAT on notary fees. 4 Obtain an "Attestation Fiscale" from Regional General Tax Authority 15 days no cost Agency : Regional General Tax Authority The pre-sale agreement (Promesse de vente) is delivered to the “Percepteur” to obtain an Attestation Fiscale from the tax collection authority (la Perception), showing whether there are outstanding taxes. As of 2016, the notaries can obtain the tax clearance after nalizing the property transfer. The “Attestation Fiscale” is mandatory by law (Article 139 du Code General des impôts). The tax collection authority enters the request for tax clearance in its automatic system; this triggers requests for clearance from other agencies: - the Direction Régionale des Impôts to verify the payment of Council or Local Tax (Taxe d’habitation/ Taxe des services communaux) - the Commune Urbaine de Casablanca to verify the payment of the urban tax Page 28   authorities, only a certi ed copy of their ID cards and the date and number Doing under the deed which2018 Business was led will be required 10% VAT on notary fees. Morocco 4 Obtain an "Attestation Fiscale" from Regional General Tax Authority 15 days no cost Agency : Regional General Tax Authority The pre-sale agreement (Promesse de vente) is delivered to the “Percepteur” to obtain an Attestation Fiscale from the tax collection authority (la Perception), showing whether there are outstanding taxes. As of 2016, the notaries can obtain the tax clearance after nalizing the property transfer. The “Attestation Fiscale” is mandatory by law (Article 139 du Code General des impôts). The tax collection authority enters the request for tax clearance in its automatic system; this triggers requests for clearance from other agencies: - the Direction Régionale des Impôts to verify the payment of Council or Local Tax (Taxe d’habitation/ Taxe des services communaux) - the Commune Urbaine de Casablanca to verify the payment of the urban tax Once clearance is obtained from both agencies, the tax collection authority delivers the tax clearance certi cate showing that the seller has cleared all taxes. 5 Registration of the deed with Tax Authority 7 days 4% of property price Agency : Tax authority of Casablanca (registration duty) The registration duty is 4%, pursuant to the Loi de Finances 2012. 6 The buyer applies for the inscription of the registered deed on the land 3 days MAD 100 + 1.5% of registers (Conservation Foncière, du Cadastre et de la Cartographie) property value Agency : Land Registry ("Conservation Foncière") (stamp duty), with a minimum of MAD Listing of the registered sales deed in the land registry is an additional 500 formality, which is separate from registration. The buyer applies for the listing of the registered deed on the land registers. According to a law 14-07, which entered into force on May 23, 2012, such listing must be completed within 3 months from the date the deed was drafted for authentic deeds and as from the date the last signature was certi ed for private deeds. Parties submit a statement that must include the following: 1. designation with land title number, of building to be listed; 2. nature of right due to be listed; 3. acquisition method and nature and date of deed testifying to it; 4. if applicable, cause of resolution, restriction or right to dispose of or special notice that needs to be listed at the same time as main right, together with details of bene ciary. This statement must be signed by both parties. An original copy of the private deed or a copy of the authentic deed concerned is attached to such application. One receives an o cial copy of the property registration certi cate at the end of this process for MAD 75, which one can sell immediately. Takes place simultaneously with previous procedure. Details – Registering Property in Morocco – Measure of Quality Answer Score Quality of the land administration index (0-30) 15.5 Reliability of infrastructure index (0-8) 4.0 What is the institution in charge of immovable property registration? Agence Nationale de la Conservation Page 29   Fonciere du Takes place simultaneously with previous procedure. Doing Business 2018 Morocco Details – Registering Property in Morocco – Measure of Quality Answer Score Quality of the land administration index (0-30) 15.5 Reliability of infrastructure index (0-8) 4.0 What is the institution in charge of immovable property registration? Agence Nationale de la Conservation Fonciere du Cadastre et de la Cartographie (ANCFCC) - Direction de la Conservation Fonciere In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Agence Nationale de la Conservation Fonciere du Cadastre et de la Cartographie (ANCFCC) - Service du Cadastre de Casablanca In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 4.0 Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: http://www.ancfc Page 30   c.gov.ma/media/ Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made Doing publicly available–and Business 2018 Moroccoif so, how? Link for online access: http://www.ancfc c.gov.ma/media/ 1192/tarifs-et- delais.pdf Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: http://www.ancfc c.gov.ma/FR/PDF _Source/PDF_406 .pdf Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: http://www.ancfc c.gov.ma/media/ 1192/tarifs-et- delais.pdf Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Anyone who 0.5 pays the o cial fee Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: http://www.ancfc c.gov.ma/media/ 1192/tarifs-et- delais.pdf http://www.ancfc c.gov.ma/nos- m%C3%A9tiers/c onservation- fonci%C3%A8re- cadastre/depot- dossiers- techniques/ Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 speci c time frame—and if so, how does it communicate the service standard? Link for online access: http://www.ancfc c.gov.ma/media/ 1192/tarifs-et- Page 31   delais.pdf Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 c time frame—and speciBusiness Doing if so, how does it communicate the service standard? 2018 Morocco Link for online access: http://www.ancfc c.gov.ma/media/ 1192/tarifs-et- delais.pdf Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 2.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 5.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Tribunal de property worth 50 times gross national income (GNI) per capita and located in the première largest business city, what court would be in charge of the case in the rst instance? instance de Casablanca How long does it take on average to obtain a decision from the rst-instance court for Between 1 and 2 2.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Page 32   Are there Doing 2018 on any statistics Business the number of land disputes in the rst instance? Morocco No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Page 33   Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Morocco Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Strength of legal rights index (0-12) 2 1.7 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 4.8 6.6 8.00 (34 Economies) Page 34   Credit registry coverage (% of adults) 0.0 14.0 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Morocco Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Strength of legal rights index (0-12) 2 1.7 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 4.8 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 14.0 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 25.0 14.2 63.7 100.00 (23 Economies) Figure – Getting Credit in Morocco and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 60.00: Spain (Rank: 68) 50.00: Egypt, Arab Rep. (Rank: 90) 50.00: France (Rank: 90) 45.00: Morocco (Rank: 105) 32.25: Regional Average (Middle East & North Africa) 10.00: Algeria (Rank: 177) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Morocco and comparator economies 6 5 5 4 4 Index score 3 2 2 2 2 1.7 1 0 Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Details – Legal Rights in Morocco Strength of legal rights index (0-12) 2 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Page 35   Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Doing Business 2018 Morocco Details – Legal Rights in Morocco Strength of legal rights index (0-12) 2 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law No allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Morocco and comparator economies 10 8 8 7 7 Index score 6 6 4.8 4 2 0 0 Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Details – Credit Information in Morocco Page 36   0 0 Morocco Doing Business 2018 Algeria Morocco Egypt, Arab Rep. France Spain Middle East & North Africa Details – Credit Information in Morocco Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 5,588,639 0 Number of firms 278,652 0 Total 5,867,291 0 Percentage of adult population 25.0 0.0 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 37   transactions; Available legal remedies (damages, Percentage of adult population 25.0 0.0 Doing Business 2018 Morocco Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 4.9 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6 4.7 6.4 Page 38   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Morocco Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 4.9 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6 4.7 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Morocco and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 70.00: Spain (Rank: 24) 66.67: France (Rank: 33) 58.33: Morocco (Rank: 62) 55.00: Egypt, Arab Rep. (Rank: 81) 47.92: Regional Average (Middle East & North Africa) 33.33: Algeria (Rank: 170) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Morocco and comparator economies – Measure of Quality Morocco 7 2 9 5 6 6 Algeria 3 1 4 4 3 5 Egypt, Arab Rep. 7 3 8 7 5 3 France 10 3 8 8 5 6 Spain 9 6 7 5 9 6 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Middle East & North Africa 5.2 4.6 6.2 4.2 4.7 4 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Morocco – Measure of Quality Answer Score Page 39   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Morocco Details – Protecting Minority Investors in Morocco – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5.7 Extent of disclosure index (0-10) 9 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0 excluding interested parties Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 2.0 2) the transaction and on the con ict of interest Extent of director liability index (0-10) 2 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Not liable 0.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by No 0.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 6 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 Page 40   shareholder Ease ofBusiness Doing suits index 2018 (0-10) Morocco 6 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without Yes 1.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0 questions only Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) At the discretion 0.0 of the court Extent of shareholder governance index (0-10) 6 Extent of shareholder rights index (0-10) 6 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a No 0.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 5 Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Page 41   Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of Doing their term? Business 2018 Morocco Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 7 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. Page 42   Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Morocco Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Payments (number per year) 6 17.9 10.9 3 (Hong Kong SAR, China) Page 43   return, but within the tax assessment period. Doing Business 2018 Morocco Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Payments (number per year) 6 17.9 10.9 3 (Hong Kong SAR, China) Time (hours per year) 155 203.4 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 49.8 32.6 40.1 18.47% (32 Economies) Postfiling index (0-100) 98.62 50.56 83.45 99.38 (Estonia) Figure – Paying Taxes in Morocco and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 85.72: Morocco (Rank: 25) 84.44: Spain (Rank: 34) 78.55: France (Rank: 54) 74.31: Regional Average (Middle East & North Africa) 54.11: Algeria (Rank: 157) 50.67: Egypt, Arab Rep. (Rank: 167) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Morocco and comparator economies – Measure of Quality 120 98.62 100 92.40 93.60 80 Index score 60 49.77 50.56 40 26.62 20 0 Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Details – Paying Taxes in Morocco Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% of Notes contribution (number) Payments (hours) tax rate Tax base profit) on TTR Page 44   Corporate income tax 1 online 48 30% taxable profits 25.09 Doing Business 2018 Morocco Figure – Paying Taxes in Morocco and comparator economies – Measure of Quality 120 98.62 100 92.40 93.60 80 Index score 60 49.77 50.56 40 26.62 20 0 Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Details – Paying Taxes in Morocco Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% of Notes contribution (number) Payments (hours) tax rate Tax base profit) on TTR Corporate income tax 1 online 48 30% taxable profits 25.09 Social security 1 online 33 21.09% gross salaries 23.32 contributions Local service tax 1 10.5% 3% of fixed 0.84 (urban assets area) Vehicle tax 1 MAD 8000 fixed fee 0.55 Value added tax (VAT) 1 online 74 20% value added 0.00 not included Social security 0 jointly 6.74% gross salaries 0.00 contributions on employee Stamp duty 1 MAD 20/ number of 0.00 small page pages in amount contract Totals 6 155 49.8 Details – Paying Taxes in Morocco – Tax by Type Taxes by type Answer Profit tax (% of profit) 25.1 Labor tax and contributions (% of profit) 23.3 Other taxes (% of profit) 1.4 Details – Paying Taxes in Morocco – Measure of Quality Page 45   Other taxes (% of profit) 1.4 Doing Business 2018 Morocco Details – Paying Taxes in Morocco – Measure of Quality Answer Score Post ling index (0-100) 98.62 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? No Restrictions on VAT refund process Purchase of machine exempted from VAT Percentage of cases exposed to a VAT audit (%) Not applicable Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) No VAT No VAT Time to obtain a VAT refund (weeks) No VAT No VAT Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 3.0 97.25 Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. Page 46   a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Morocco Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 47   of agriculture or industry, national security agencies and any other Doing Business 2018 Morocco government authorities. Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Time to export: Border compliance (hours) 19 62.6 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 156 464.4 149.9 0.00 (19 Economies) Time to export: Documentary compliance 26 74.3 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 107 243.6 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 106 112.3 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 228 540.7 111.6 0.00 (27 Economies) Time to import: Documentary compliance 26 94.5 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 116 266.2 25.6 0.00 (30 Economies) Figure – Trading across Borders in Morocco and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 81.12: Morocco (Rank: 65) 58.07: Regional Average (Middle East & North Africa) 42.23: Egypt, Arab Rep. (Rank: 170) 24.15: Algeria (Rank: 181) 100.00: Spain (Rank: 1) 100.00: France (Rank: 1) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Morocco – Time and Cost Time Cost 120 250 106 228 100 200 80 156 Time (hours) Cost (USD) 150 60 116 107 100 40 26 26 19 50 20 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 48   Doing Business 2018 Morocco Figure – Trading across Borders in Morocco – Time and Cost Time Cost 120 250 106 228 100 200 80 156 Time (hours) Cost (USD) 150 60 116 107 100 40 26 26 19 50 20 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Morocco Characteristics Export Import Product HS 85 : Electrical machinery and equipment and parts thereof; sound recorders and HS 8708: Parts and reproducers, television image and sound recorders and reproducers, and parts and accessories of motor accessories of such articles vehicles Trade partner France France Border Port of Tanger Port of Tanger Distance (km) 337 337 Domestic 5 5 transport time (hours) Domestic 360 360 transport cost (USD) Details – Trading across Borders in Morocco – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 14.0 85.8 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 11.0 70.0 Import: Clearance and inspections required by customs authorities 10.0 146.1 Import: Clearance and inspections required by agencies other than customs 48.0 0.0 Import: Port or border handling 48.0 82.0 Page 49   Details – Trading across Borders in Morocco – Trade Documents (USD) Doing Business 2018 Morocco Details – Trading across Borders in Morocco – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 14.0 85.8 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 11.0 70.0 Import: Clearance and inspections required by customs authorities 10.0 146.1 Import: Clearance and inspections required by agencies other than customs 48.0 0.0 Import: Port or border handling 48.0 82.0 Details – Trading across Borders in Morocco – Trade Documents Export Import Commercial invoice Commercial invoice Packing list Packing list Certificate of origin Customs import declaration Customs Export Declaration MCI notification Etat de chargement du Transporteur Delivery Order SOLAS certificate Release Order Import license (Engagement d'importation) SOLAS certificate Bill of lading Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the (Seller - The dispute concerns a lawful transaction between two businessesPage 50   courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Bill of lading Doing Business 2018 Morocco Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value MAD 55,150.00 Court name Commercial Court of Casablanca City Covered Casablanca Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Time (days) 510 638.5 577.8 164.00 (Singapore) Cost (% of claim value) 26.5 24.4 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 8.5 5.9 11.0 15.50 (Australia) Figure – Enforcing Contracts in Morocco and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.04: France (Rank: 15) 69.97: Spain (Rank: 26) 61.85: Morocco (Rank: 57) Page 51   of judicial processes Quality Business Doing index (0-18) 2018 Morocco 8.5 5.9 11.0 15.50 (Australia) Figure – Enforcing Contracts in Morocco and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.04: France (Rank: 15) 69.97: Spain (Rank: 26) 61.85: Morocco (Rank: 57) 55.49: Algeria (Rank: 103) 54.21: Regional Average (Middle East & North Africa) 42.75: Egypt, Arab Rep. (Rank: 160) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Morocco – Time and Cost Time Cost 1200 30 26.5 1010 26.2 24.4 1000 25 Cost (% of claim value) 21.5 19.9 800 20 Time (days) 17.4 17.2 630 638.5 577.8 600 510 510 15 395 400 10 200 5 0 0 Algeria Egypt, Arab Rep. France Middle East & Morocco OECD high income Spain North Africa Figure – Enforcing Contracts in Morocco and comparator economies – Measure of Quality Morocco 2.5 1 0 5 Algeria 2.5 0 3 Egypt, Arab Rep. 2 0 3.5 France 2.5 3 1 4.5 Spain 3 2.5 2.5 3 OECD high income 2.5 2.9 2 3.6 Middle East & North Africa 2.1 0.7 0.3 2.8 0 2 4 6 8 10 Page 52   12 Algeria Egypt, Arab Rep. France Middle East & Morocco OECD high income Spain North Africa Doing Business 2018 Morocco Figure – Enforcing Contracts in Morocco and comparator economies – Measure of Quality Morocco 2.5 1 0 5 Algeria 2.5 0 3 Egypt, Arab Rep. 2 0 3.5 France 2.5 3 1 4.5 Spain 3 2.5 2.5 3 OECD high income 2.5 2.9 2 3.6 Middle East & North Africa 2.1 0.7 0.3 2.8 0 2 4 6 8 10 12 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Morocco Indicator Time (days) 510 Filing and service 20 Trial and judgment 310 Enforcement of judgment 180 Cost (% of claim value) 26.5 Attorney fees 13.7 Court fees 4.5 Enforcement fees 8.3 Quality of judicial processes index (0-18) 8.5 Court structure and proceedings (-1-5) 5.0 Case management (0-6) 1.0 Court automation (0-4) 0.0 Alternative dispute resolution (0-3) 2.5 Details – Enforcing Contracts in Morocco – Measure of Quality Page 53   Alternative dispute resolution (0-3) 2.5 Doing Business 2018 Morocco Details – Enforcing Contracts in Morocco – Measure of Quality Answer Score Quality of judicial processes index (0-18) 8.5 Court structure and proceedings (-1-5) 5.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, automatic 1.0 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 1.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? No 1.b. If yes, are the time standards set for at least three court events? n.a. 1.c. Are these time standards respected in more than 50% of cases? n.a. 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 0.0 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 54   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Morocco 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 55   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Morocco Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Recovery rate (cents on the dollar) 28.4 25.5 71.2 93.1 (Norway) Time (years) 3.5 3.0 1.7 0.4 (Ireland) Page 56   Cost (% of estate) 18.0 13.8 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Morocco Middle East & OECD high Indicator Morocco North Africa income Overall Best Performer Recovery rate (cents on the dollar) 28.4 25.5 71.2 93.1 (Norway) Time (years) 3.5 3.0 1.7 0.4 (Ireland) Cost (% of estate) 18.0 13.8 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 6.0 5.4 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Morocco and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 78.74: Spain (Rank: 19) 73.91: France (Rank: 28) 49.24: Algeria (Rank: 71) 38.89: Egypt, Arab Rep. (Rank: 115) 34.03: Morocco (Rank: 134) 30.45: Regional Average (Middle East & North Africa) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Morocco – Time and Cost Time Cost 4 25 22.0 3.5 3.5 3.0 18.0 20 3 2.5 Cost (% of estate) Time (years) 2.5 13.8 15 1.9 11.0 2 1.7 9.0 9.1 1.5 1.5 1.3 10 7.0 1 5 0.5 0 0 Algeria Egypt, Arab Rep. France Middle East & Morocco OECD high income Spain North Africa Figure – Resolving Insolvency in Morocco and comparator economies – Measure of Quality Morocco 4 2 0 Page 57   Algeria 2 3 1 1 Algeria Egypt, Arab Rep. France Middle East & Morocco OECD high income Spain North Africa Doing Business 2018 Morocco Figure – Resolving Insolvency in Morocco and comparator economies – Measure of Quality Morocco 4 2 0 Algeria 2 3 1 1 Egypt, Arab Rep. 4 2 2 0 France 6 3 1 1 Spain 6 3 1 2 OECD high income 5.4 2.8 2.3 1.9 Middle East & North Africa 3.3 2.1 0.9 0.2 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Morocco and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 80 76.6 73.5 70 60 50.8 50 40 28.4 25.8 30 25.5 20 10 0 Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Details – Resolving Insolvency in Morocco Indicator Answer Explanation Proceeding liquidation As Mirage will not be able to settle its current liabilities with its available assets, it will request (after an commencement of insolvency proceedings no later than 15 days after the cessation of attempt at payments (this allows the stay of proceedings and delays the sale of the collateral). If the reorganization) situation of the company is not irremediably jeopardized, the reorganization will be declared, under article 561 of the Commercial Code. If a reorganization plan is not proposed or if the activity cannot continue, the court will declare the liquidation of Mirage. According to our information, the reorganization will fail and proceedings will be converted into liquidation by the court some months after the opening. This (liquidation after an attempt at reorganization) would be the most likely procedure in Morocco. Outcome piecemeal sale According to our estimations, the reorganization attempt will fail and the proceedings will probably be converted to liquidation. The hotel will stop operating and will be dismantled, and the assets of the debtor will be sold separately. Page 58   Morocco Algeria Egypt, Arab Rep. France Spain Middle East & North Africa Doing Business 2018 Morocco Details – Resolving Insolvency in Morocco Indicator Answer Explanation Proceeding liquidation As Mirage will not be able to settle its current liabilities with its available assets, it will request (after an commencement of insolvency proceedings no later than 15 days after the cessation of attempt at payments (this allows the stay of proceedings and delays the sale of the collateral). If the reorganization) situation of the company is not irremediably jeopardized, the reorganization will be declared, under article 561 of the Commercial Code. If a reorganization plan is not proposed or if the activity cannot continue, the court will declare the liquidation of Mirage. According to our information, the reorganization will fail and proceedings will be converted into liquidation by the court some months after the opening. This (liquidation after an attempt at reorganization) would be the most likely procedure in Morocco. Outcome piecemeal sale According to our estimations, the reorganization attempt will fail and the proceedings will probably be converted to liquidation. The hotel will stop operating and will be dismantled, and the assets of the debtor will be sold separately. Time (in years) 3.5 According to our estimations, a reorganization attempt that is later converted to liquidation takes approximately 42 months in Morocco. The reorganization attempt will take 12 months (2 months to obtain judgment, 8 months for the syndic to elaborate the report, 2 months for the verification of claims). Then, liquidation is opened and this phase takes around 12 months. Then, the sale of the hotel building, which is the only asset of Mirage, will take approximately 18 months. Cost (% of 18.0 According to our estimations, a reorganization attempt that is later converted into estate) liquidation costs approximately MAD 462,700 (18% of the value of the estate). Lawyer fees (5%), syndic fees (10%) and bailiffs and court fees (3%) constitute the main fees of the procedure. Recovery rate (cents on the 28.4 dollar) Details – Resolving Insolvency in Morocco – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 6.0 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 proceedings? le for liquidation only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 4.0 Page 59   dollar) Doing Business 2018 Morocco Details – Resolving Insolvency in Morocco – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 6.0 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 proceedings? le for liquidation only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 4.0 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit No 0.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 0.0 Which creditors vote on the proposed reorganization plan? (c) Other 0.0 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 0.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Page 60   Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment Doing Business of the 2018insolvency representative? Morocco Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to No 0.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website Page 61   the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Morocco Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Morocco Answer Hiring Page 62   Fixed-term contracts prohibited for permanent tasks? Yes days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Morocco Details – Labor Market Regulation in Morocco Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) 12.0 Maximum length of xed-term contracts, including renewals (months) 12.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 268.3 Ratio of minimum wage to value added per worker 0.8 Maximum length of probationary period (months) 1.5 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 0.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 25.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? Yes Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 18.0 Paid annual leave for a worker with 5 years of tenure (working days) 19.5 Paid annual leave for a worker with 10 years of tenure (working days) 21.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 19.5 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? Yes Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? Yes Retraining or reassignment obligation before redundancy? Yes Page 63   Third-party Doing approval Business 2018 if nine workers are dismissed? Morocco Yes Retraining or reassignment obligation before redundancy? Yes Priority rules for redundancies? Yes Priority rules for reemployment? Yes Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 8.7 Notice period for redundancy dismissal for a worker with 10 years of tenure 8.7 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 7.2 Severance pay for redundancy dismissal for a worker with 1 year of tenure 2.2 Severance pay for redundancy dismissal for a worker with 5 years of tenure 10.9 Severance pay for redundancy dismissal for a worker with 10 years of tenure 27.3 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 13.5 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 98.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? No Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? 36.0 Business Reforms in Morocco In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Morocco implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Morocco made starting a business easier by combining the stamp duty payment with the application for business incorporation. Registering Property: Morocco made registering property more expensive by increasing registration fees. Paying Taxes: Morocco made paying taxes easier by improving the online system for ling and paying taxes. DB2017 Page 64   Starting a Business: Morocco made the process of starting a business easier by introducing an online platform to reserve the Minimum contribution period for unemployment protection (months)? 36.0 Doing Business 2018 Morocco Business Reforms in Morocco In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Morocco implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Morocco made starting a business easier by combining the stamp duty payment with the application for business incorporation. Registering Property: Morocco made registering property more expensive by increasing registration fees. Paying Taxes: Morocco made paying taxes easier by improving the online system for ling and paying taxes. DB2017 Starting a Business: Morocco made the process of starting a business easier by introducing an online platform to reserve the company name and reducing registration fees. Registering Property: Morocco made registering property easier by streamlining the property registration process. Getting Credit: In Morocco the credit bureau began to provide credit scores. Protecting Minority Investors: Morocco strengthened minority investor protections by clarifying ownership and control structures and by requiring greater corporate transparency. Trading across Borders: Morocco made trading across borders easier by further developing its single window system and thus reducing border compliance time for importing. DB2016 Starting a Business: Morocco made starting a business easier by eliminating the need to le a declaration of business incorporation with the Ministry of Labor. Dealing with Construction Permits: Morocco made dealing with construction permits more di cult by requiring architects to submit the building permit request online, along with supporting documents, and to follow up with a hard-copy submission. On the other hand, Morocco reduced the time required to obtain an urban certi cate. Getting Electricity: The utility in Morocco reduced the time required for getting an electricity connection by providing fee estimates more quickly. Registering Property: Morocco made property transfers faster by establishing electronic communication links between di erent tax authorities. Paying Taxes: Morocco made paying taxes easier for companies by improving the electronic platform for ling and paying corporate income tax, VAT and labor taxes. On the other hand, Morocco increased the rate of the social charge paid by employers. Labor Market Regulation: 1) Morocco implemented an unemployment insurance scheme. 2) Morocco increased the minimum wage increased from 12.24 to 12.85 DH/hour as of July 1, 2014, according to decree n° 2.14.343 of June 2014, published in the o cial bulletin 5292. DB2015 Trading across Borders: Morocco made trading across borders easier by reducing the number of export documents required. DB2014 Starting a Business: Morocco made starting a business easier by reducing the company registration fees. Registering Property: Morocco made transferring property easier by reducing the time required to register a deed of transfer at the tax authority. Paying Taxes: Morocco made paying taxes easier for companies by increasing the use of the electronic ling and paymentPage 65   system for social security contributions. Registering Property: Morocco made transferring property easier by reducing the time required to register a deed of transfer at Doing Business 2018 the tax authority. Morocco Paying Taxes: Morocco made paying taxes easier for companies by increasing the use of the electronic ling and payment system for social security contributions. DB2013 Starting a Business: Morocco made starting a business easier by eliminating the minimum capital requirement for limited liability companies. Registering Property: Morocco made registering property more costly by increasing property registration fees. DB2012 Dealing with Construction Permits: Morocco made dealing with construction permits easier by opening a one-stop shop. Protecting Minority Investors: Morocco strengthened investor protections by allowing minority shareholders to obtain any noncon dential corporate document during trial. Paying Taxes: Morocco eased the administrative burden of paying taxes for rms by enhancing electronic ling and payment of the corporate income tax and value added tax. DB2011 Protecting Minority Investors: Morocco strengthened investor protections by requiring greater disclosure in companies’ annual reports. DB2010 Getting Credit: Morocco improved access to credit information through a new private credit bureau that started operations. DB2009 Getting Credit: Morocco improved access to credit information by guaranteeing borrowers’ right to inspect their own data in the public credit registry. Paying Taxes: Morocco made paying taxes less costly for companies by reducing the corporate income tax rate, exempting gains made from the sale of certain buildings from the capital gains tax and abolishing xed registration duty rates on deeds—though it also increased the tax rates on insurance contracts. Trading across Borders: Morocco reduced the time for exporting and importing by eliminating the container identi cation card. DB2008 Dealing with Construction Permits: Morocco made dealing with construction permits easier by introducing a one-stop shop, which reduced the time required for permit applications. Registering Property: Morocco made registering property more complicated by implementing a requirement to check several tax agencies—rather than just one—in order to obtain a tax clearance certi cate. Trading across Borders: Morocco made trading across borders easier by introducing a risk-based inspection system. Page 66   tax agencies—rather than just one—in order to obtain a tax clearance certi cate. Trading Doing 2018 Morocco across Borders: Business made trading across borders easier by introducing a risk-based inspection system. Morocco Page 67