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Doing Business with Western Sahara

A comprehensive guide to doing business, exporting, investing, and manufacturing in Western Sahara.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Afghanistan Investment Support Agency (AISA)

Afghanistan Investment Support Agency (AISA) - Foreign Direct Investment into Afghanistan | Incorporating in Afghanistan | Company Formation in Afghanistan

Tel: +93 020 210 3404
Web: www.aisa.org.af
www.investinafghanistan.af

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Afghanistan Investment Support Agency (AISA)

Export Promotion Agency of Afghanistan - Incorporating in Afghanistan / Company Formation in Afghanistan / Investing in Afghanistan

Tel: +93 202504837
Email: [email protected]
Web: www.epaa.org.af

National Chamber of Commerce

Afghanistan Chamber of Commerce and Industry (ACCI)

Afghanistan Chamber of Commerce and Industry - Incorporating in Afghanistan / Company Formation in Afghanistan / Investing in Afghanistan

Tel: +93 (0) 700297718
Email: [email protected]
Web: www.acci.org.af

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Economy of Afghanistan

Ministry of Economy of Afghanistan - Incorporating in Afghanistan / Company Formation in Afghanistan / Investing in Afghanistan Tel: +93 0202100428
Email: [email protected]
Web: www.moec.gov.af

Basic Statistics about Western Sahara

  • Type of Government: Disputed territory (claimed by both the self-proclaimed Sahrawi Arab Democratic Republic (SADR) and Morocco)
  • Population: Approx. 600,000 (2023 estimate, varies due to nomadism and refugee populations)
  • GDP: Difficult to estimate due to the territorial dispute and limited economic data; largely dependent on Morocco’s administration in the areas it controls
  • Corporate Tax Rate: Follows Moroccan tax system in areas controlled by Morocco – 31% for large companies (2023)
  • Personal Income Tax Rate: Follows Moroccan tax system in areas controlled by Morocco – ranges from 0% to 38% (2023)
  • Major Exports: Phosphates, fish, and fish products
  • Major Imports: Fuel, foodstuffs, machinery, and manufactured goods

Note: The data for Western Sahara is limited and often reflects the situation in Moroccan-controlled areas, as the SADR government operates in exile with limited economic activities.

Exporting to Western Sahara

Exporting to Western Sahara can be complex due to the disputed nature of the territory. Western Sahara is claimed by both the Sahrawi Arab Democratic Republic (SADR) and Morocco. However, the majority of economic activities, including exports, are currently managed by Morocco, which controls much of the territory. As a result, exporting to Western Sahara typically follows procedures similar to those for exporting to Morocco. Below are the steps required to export to Western Sahara, along with key contacts in related government agencies.

1. Identify the Market and Legal Framework

Before beginning the export process, it is essential to understand the legal framework governing trade in the region. In most cases, exports to Western Sahara follow Moroccan trade laws and regulations, as Morocco controls key ports and infrastructure in the region.

  • How to Do It:
    • Research the market demand for your product in Western Sahara. The territory is known for its phosphate industry, fisheries, and reliance on imported goods such as food, fuel, and machinery.
    • Review Moroccan trade policies, tariffs, and any specific regulations that apply to your product.
    • Check if any international sanctions or trade restrictions apply, as Western Sahara is a disputed territory.

Key Contact:

2. Obtain an Export License (if required)

Depending on the nature of your goods, you may need to obtain an export license or meet other regulatory requirements set by Moroccan authorities. This is particularly important for strategic goods like pharmaceuticals, foodstuffs, or dual-use goods (items with both civilian and military applications).

  • How to Do It:
    • Contact the Moroccan Ministry of Industry and Trade or Moroccan Customs to determine if your product requires an export license.
    • Submit the required documents, such as product specifications and information about the destination, to the relevant authority.

Key Contact:

3. Classify Your Goods and Determine Tariffs

Properly classifying your goods according to the Harmonized System (HS) Code is a crucial step in determining the applicable tariffs, duties, and taxes. Since Moroccan-controlled Western Sahara follows Moroccan custom regulations, you must ensure that your goods are correctly classified.

  • How to Do It:
    • Use the HS Code system to classify your product.
    • Check the Moroccan tariff schedule to determine any applicable tariffs or duties for your product type.

Key Contact:

4. Prepare the Necessary Export Documentation

To export to Western Sahara, you will need to prepare standard export documentation, which typically includes the following:

  • Commercial Invoice: A detailed invoice specifying the buyer, seller, and the nature of the goods.
  • Packing List: Describes the contents of each package, including weight and dimensions.
  • Certificate of Origin: Certifies where the goods were produced, issued by a chamber of commerce.
  • Bill of Lading/Airway Bill: A transport document issued by the shipping company or airline.
  • Export Declaration Form: Required by Moroccan customs to declare the value and classification of the goods being exported.
  • Insurance Certificate: Evidence of insurance for the shipment.
  • How to Do It:
    • Work with a freight forwarder or customs broker to ensure all documentation is accurate and complete.
    • Submit the documents to Moroccan customs authorities for inspection and clearance.

Key Contact:

5. Arrange Transport and Logistics

Western Sahara has limited infrastructure, but the main entry point for exports is through Morocco’s ports, such as the Port of Dakhla in southern Morocco, which serves as a gateway to Western Sahara. Goods can be shipped via sea, air, or land depending on the nature and volume of the shipment.

  • How to Do It:
    • Choose a reliable logistics provider or freight forwarder experienced in exporting to Morocco or Western Sahara.
    • Confirm the appropriate mode of transportation (sea, air, or land) and ensure that all transportation documentation is in order.

Key Contact:

6. Comply with Customs Clearance Procedures

Once your goods reach a Moroccan port or border, they will need to go through customs clearance. Moroccan customs will inspect the shipment and verify that it complies with the necessary import regulations, tariffs, and duties.

  • How to Do It:
    • Submit the export documentation to Moroccan customs.
    • Pay any applicable customs duties and VAT (Value Added Tax) to clear the goods for entry into Western Sahara.
    • Ensure that the importer in Western Sahara is aware of the clearance process and any additional local requirements.

Key Contact:

7. Handle Payment and Currency Exchange

Given that the Moroccan Dirham (MAD) is the primary currency used in Moroccan-controlled Western Sahara, you must ensure that payment terms are agreed upon in MAD or another convertible currency like USD or EUR. It’s also essential to confirm the availability of foreign exchange where applicable, especially if the buyer is in Western Sahara.

  • How to Do It:
    • Establish a letter of credit (LC) or other secure payment methods to minimize financial risks.
    • Work with banks that have experience handling international transactions in Morocco or Western Sahara.

Key Contact:

8. Monitor Regulatory Compliance and Trade Sanctions

Since Western Sahara is a disputed territory, some countries and international organizations may have restrictions or sanctions in place regarding trade in certain goods. It is critical to ensure compliance with international trade regulations and avoid any products or services that may be restricted.

  • How to Do It:
    • Check with your country’s export control authority or trade ministry to confirm that there are no trade restrictions on your goods.
    • Monitor any UN or EU sanctions that might affect exports to Western Sahara.

Key Contact:

9. Establish Post-Sale Support and Compliance

Once your goods have been exported and cleared for entry, you may need to provide post-sale support such as warranty services, spare parts, or maintenance, depending on the nature of the product. Establishing a local presence or partnering with local distributors in Moroccan-controlled Western Sahara can facilitate smoother operations and customer service.

  • How to Do It:
    • Partner with a local distributor or agent in Western Sahara to manage post-sale support and ensure compliance with local regulations.
    • Consider setting up a branch office or representative office in Morocco to handle logistical and legal matters in the region.

Key Contact:

Key Contacts for Exporting to Western Sahara

  1. Moroccan Ministry of Industry and Trade
    Website: https://www.mcinet.gov.ma
  2. Moroccan Customs and Indirect Taxes Administration
    Website: https://www.douane.gov.ma
  3. Moroccan National Ports Agency
    Website: http://www.anp.org.ma
  4. Bank Al-Maghrib (Morocco’s Central Bank)
    Website: https://www.bkam.ma
  5. Moroccan Chamber of Commerce and Industry
    Website: https://www.ccis.ma

Importing into Western Sahara

Importing goods into Western Sahara presents unique challenges due to the ongoing territorial dispute between Morocco and the Sahrawi Arab Democratic Republic (SADR). However, since Morocco controls much of the territory, the process for importing goods typically follows Moroccan customs laws and procedures. This guide outlines the steps required to import goods into Western Sahara, focusing on the Moroccan-controlled areas, which operate under Moroccan trade regulations.

1. Understand the Legal and Political Context

Western Sahara is a disputed territory, with Morocco controlling most of the region. As a result, the import process is governed by Moroccan trade laws in areas under Moroccan control. It is crucial to familiarize yourself with this context, as the political situation can affect import regulations and operations.

  • How to Do It:
    • Research Morocco’s import regulations, which apply to goods entering Moroccan-controlled areas of Western Sahara.
    • Stay informed about any international sanctions or trade restrictions that may apply due to the disputed nature of the territory.

Key Contact:

2. Identify if You Need an Import License

Depending on the type of goods you wish to import into Western Sahara, you may need to obtain an import license. This is particularly important for goods that are classified as strategic, such as pharmaceuticals, foodstuffs, or items with potential military applications.

  • How to Do It:
    • Contact the Moroccan Ministry of Industry and Trade or Customs Authority to determine if your product requires an import license.
    • Submit the necessary documentation, including product details and where the goods will be imported, to the relevant authority.

Key Contact:

3. Classify the Goods Using the Harmonized System (HS) Code

Correctly classifying your goods under the Harmonized System (HS) Code is essential for determining applicable tariffs, taxes, and duties. Moroccan-controlled Western Sahara follows the same classification system as mainland Morocco.

  • How to Do It:
    • Use the HS Code system to classify your product.
    • Check Morocco’s customs tariff schedule to determine the taxes and duties applicable to your product type.

Key Contact:

4. Prepare the Required Import Documentation

To successfully import goods into Moroccan-controlled Western Sahara, you must prepare and submit the necessary import documentation. The following documents are typically required:

  • Commercial Invoice: Detailing the buyer, seller, and the nature of the goods.
  • Packing List: Outlining the contents of each package, including weight and dimensions.
  • Certificate of Origin: Verifying where the goods were produced, issued by a chamber of commerce.
  • Bill of Lading or Airway Bill: Issued by the shipping company or airline, detailing transport logistics.
  • Import Declaration Form: Required by Moroccan customs to declare the goods.
  • Insurance Certificate: Confirming that the goods are insured for transport.
  • How to Do It:
    • Work with a freight forwarder or customs broker to ensure all documentation is accurate and complete.
    • Submit the documentation to Moroccan Customs for inspection and clearance.

Key Contact:

5. Arrange Transport and Logistics

The main entry points for importing goods into Western Sahara are Moroccan ports, such as Dakhla and Laayoune. Goods are typically transported via sea, air, or land, depending on the nature and volume of the shipment.

  • How to Do It:
    • Choose a reliable logistics provider or freight forwarder experienced in importing goods to Morocco or Western Sahara.
    • Ensure that your goods are properly packaged and labeled for transport, and that all shipping documentation is in order.

Key Contact:

6. Comply with Customs Clearance Procedures

Once your goods arrive at a Moroccan port (e.g., Dakhla or Laayoune), they will need to go through customs clearance. Moroccan customs authorities will inspect the shipment to ensure it complies with the necessary import regulations.

  • How to Do It:
    • Submit the required import documentation to Moroccan customs authorities.
    • Pay any applicable customs duties, VAT, and other taxes to clear the goods for entry into Western Sahara.
    • Ensure the importer or local partner in Western Sahara is aware of any additional local regulatory requirements.

Key Contact:

7. Pay Import Duties and Taxes

Importing goods into Moroccan-controlled Western Sahara involves paying customs duties and taxes, including Value Added Tax (VAT). The applicable rates vary based on the type of goods being imported.

  • How to Do It:
    • Check the customs tariff for your product’s HS Code to determine the duties and taxes.
    • Pay the required fees through your freight forwarder or directly to Moroccan customs.

Key Contact:

8. Confirm the Availability of Foreign Exchange

Since Moroccan-controlled Western Sahara uses the Moroccan Dirham (MAD) as its official currency, it is important to ensure that the necessary foreign exchange is available to complete the payment process. You may need to secure foreign currency for your transactions, especially if you’re dealing in USD or EUR.

  • How to Do It:
    • Work with local banks or international financial institutions to facilitate the exchange of foreign currency into Moroccan Dirhams (MAD).
    • Consider establishing a letter of credit (LC) or other secure payment methods to minimize financial risks.

Key Contact:

9. Establish Local Distribution and Post-Import Compliance

Once your goods have cleared customs and entered Western Sahara, you may need to establish a local distribution network to move the products from the port to their final destination. Additionally, you need to ensure compliance with any post-import regulations, such as labeling, packaging, and safety standards.

  • How to Do It:
    • Partner with local distributors or logistics providers to manage the distribution of goods throughout Western Sahara.
    • Ensure that the goods meet any local regulatory or safety requirements, especially for foodstuffs, pharmaceuticals, and other regulated products.

Key Contact:

10. Monitor and Adapt to Changing Regulations

The political and regulatory environment in Western Sahara can change due to its disputed status. Regularly monitor changes in Moroccan trade laws, international sanctions, or any local requirements that could impact your import activities.

  • How to Do It:
    • Stay in close contact with Moroccan customs and trade authorities to stay updated on any regulatory changes.
    • Consult legal advisors or trade experts familiar with the region to ensure ongoing compliance with Moroccan and international regulations.

Key Contact:

Key Contacts for Importing into Western Sahara

  1. Moroccan Ministry of Industry and Trade
    Website: https://www.mcinet.gov.ma
  2. Moroccan Customs and Indirect Taxes Administration
    Website: https://www.douane.gov.ma
  3. Moroccan National Ports Agency
    Website: http://www.anp.org.ma
  4. Bank Al-Maghrib (Morocco’s Central Bank)
    Website: https://www.bkam.ma
  5. Moroccan Chamber of Commerce and Industry
    Website: https://www.ccis.ma

Investing / Incorporating in Western Sahara

Incorporating a company in Western Sahara presents unique challenges due to its political status as a disputed territory. Most of the territory is under Moroccan control, and as a result, incorporating a company in Western Sahara typically follows Moroccan corporate laws and procedures. This process involves registering the company through Moroccan authorities, as they control the administrative, legal, and economic aspects of the region. Below are the steps required to incorporate a company in Moroccan-controlled Western Sahara, along with relevant costs and key contacts in government agencies.

1. Decide on the Type of Company

Before incorporating, you need to choose the appropriate legal structure for your company. The most common types of businesses in Morocco (and in Moroccan-controlled Western Sahara) include:

  • Société à Responsabilité Limitée (SARL): A limited liability company suitable for small to medium-sized businesses.
  • Société Anonyme (SA): A public limited company generally used by larger businesses.
  • How to Do It:
    • Determine the most appropriate business structure based on the size, ownership, and liability preferences for your business.
    • Consult with a legal advisor or business consultant familiar with Moroccan corporate law to make an informed decision.

Key Contact:

2. Choose a Company Name and Verify Availability

You must select a unique name for your company and verify its availability. The company name must comply with Moroccan naming regulations and cannot conflict with existing registered businesses.

  • How to Do It:
    • Check the availability of your chosen company name with OMPIC (Moroccan Office for Industrial and Commercial Property).
    • Reserve the name by submitting a request online or in person.

Cost:

  • Approx. MAD 150 (approx. USD 15) for name reservation.

Key Contact:

3. Draft the Company’s Articles of Association

The Articles of Association (Statuts) outline the company’s structure, purpose, and operational rules. This document is required for company registration and must include details such as:

  • Company name and address
  • Business objectives
  • Share capital and shareholders
  • Management structure
  • How to Do It:
    • Draft the Articles of Association in accordance with Moroccan law. It’s recommended to hire a legal advisor or notary to ensure compliance.
    • The document must be signed by all shareholders.

Key Contact:

4. Open a Corporate Bank Account and Deposit Share Capital

Once the Articles of Association are prepared, you will need to open a corporate bank account in Morocco or Moroccan-controlled Western Sahara. You must deposit the required share capital into the account.

  • For a SARL: Minimum share capital of MAD 10,000 (approx. USD 1,000), although no minimum is legally required.
  • For an SA: Minimum share capital of MAD 300,000 (approx. USD 30,000).
  • How to Do It:
    • Open a corporate bank account with a Moroccan bank.
    • Deposit the initial share capital and obtain a certificate of deposit from the bank, which will be required for company registration.

Key Contacts:

5. Register the Company with the Moroccan Commercial Court

To officially incorporate the company, you must register it with the Moroccan Commercial Court. This process involves submitting the required documents, such as the Articles of Association, certificate of deposit, and proof of company name reservation.

  • Required Documents:
    • Articles of Association (Statuts)
    • Certificate of deposit from the bank
    • Company name reservation certificate from OMPIC
    • Identification documents for shareholders
  • How to Do It:
    • Submit the documents to the Regional Commercial Court in the area where the company will be based (e.g., Laayoune or Dakhla for Western Sahara).
    • Pay the registration fees.

Cost:

  • Approx. MAD 1,000 – 2,000 (USD 100 – 200) for registration fees.

Key Contact:

6. Register for Tax Identification and VAT

After registering with the Commercial Court, you must obtain a Tax Identification Number (Identifiant Fiscal) from the Moroccan Tax Authority. This number is required for all tax filings. Additionally, depending on the nature of your business, you may need to register for VAT (Value Added Tax).

  • How to Do It:
    • Visit the local tax office in the region (e.g., Laayoune or Dakhla) to submit your tax registration documents.
    • If your business qualifies, register for VAT (standard VAT rate in Morocco is 20%).

Key Contact:

7. Register for Social Security

All companies in Moroccan-controlled Western Sahara must register with the National Social Security Fund (CNSS) to ensure compliance with labor laws. This registration is mandatory for hiring employees and providing social benefits.

  • How to Do It:
    • Visit the local CNSS office or apply online to register your company and employees for social security.
    • Submit the required documentation, including employee contracts and company information.

Key Contact:

8. Obtain Municipal and Activity Licenses

Depending on your business activity, you may need to obtain additional municipal licenses or sector-specific permits. For example, businesses involved in food production, pharmaceuticals, or heavy industry may require special permits from local authorities.

  • How to Do It:
    • Contact the local municipality in the area where your business will operate (e.g., Laayoune or Dakhla) to inquire about any additional licenses or permits required for your specific business activity.
    • Obtain the necessary permits before commencing operations.

Key Contact:

9. Publish Incorporation in the Official Bulletin

Once the company is registered, you are required to publish a notice of incorporation in the Official Bulletin and a local newspaper. This step makes the company incorporation official and transparent.

  • How to Do It:
    • Submit a request to the Official Bulletin for publication, including details such as the company’s name, legal structure, and address.
    • Publish a similar notice in a local newspaper in Western Sahara.

Cost:

  • Approx. MAD 500 – 1,000 (USD 50 – 100) for publication fees.

Key Contact:

10. Start Business Operations

After completing all the steps above, your company is officially incorporated and can begin operations. You can now sign contracts, open more bank accounts, hire employees, and engage in business activities in Western Sahara.

  • How to Do It:
    • Make sure your business complies with all Moroccan laws regarding taxation, labor, and business activities.
    • Consider hiring a local consultant or business advisor to help navigate any additional regional regulations specific to Western Sahara.

Manufacturing in Western Sahara

Setting up a manufacturing plant in Western Sahara means navigating a region under Moroccan control, where Moroccan laws, regulations, and administrative procedures apply. The process is similar to that in mainland Morocco, and involves complying with legal, environmental, and industrial regulations managed by a combination of Moroccan government agencies. Below are the clear steps to establish a manufacturing plant in Western Sahara, focusing on the Moroccan-controlled areas such as Laayoune and Dakhla.

1. Understand the Legal and Regulatory Framework

Before proceeding with the setup, it is essential to understand the legal framework governing businesses in Western Sahara, which is largely based on Moroccan law. This includes laws related to corporate structure, labor regulations, environmental impact, and industrial activity.

  • How to Do It:
    • Review Moroccan investment laws and regulations.
    • Consult with a local legal advisor or business consultant who is familiar with Moroccan laws and the specific requirements for operating in Western Sahara.

Key Contact:

2. Choose a Suitable Location for the Plant

Choosing the right location for your manufacturing plant is critical. Western Sahara offers key industrial zones, especially around Laayoune and Dakhla, which are well-connected to Moroccan ports and infrastructure. Factors such as proximity to raw materials, transportation, and access to labor should guide your decision.

  • How to Do It:
    • Visit the industrial zones in Laayoune or Dakhla to evaluate their suitability for your specific manufacturing needs.
    • Contact local authorities or the Moroccan Ministry of Industry and Trade to inquire about available land for industrial use.

Key Contact:

3. Incorporate Your Company in Western Sahara

You must incorporate a legal entity to operate in Western Sahara. Most businesses in Moroccan-controlled Western Sahara are established as either a Société à Responsabilité Limitée (SARL) (Limited Liability Company) or a Société Anonyme (SA) (Public Limited Company). The incorporation process follows Moroccan law.

  • How to Do It:
    • Register your company with the Regional Commercial Court in Laayoune or Dakhla.
    • Submit the required documents, such as the Articles of Association, company name reservation certificate (from OMPIC), and capital deposit certificate.

Key Contact:

4. Obtain Land and Construction Permits

Once you have identified the location for your manufacturing plant, you will need to acquire land and obtain the necessary construction permits. This process involves working with local municipalities and adhering to zoning regulations.

  • How to Do It:
    • Contact the local municipality for available land and verify zoning laws.
    • Submit a land acquisition application and apply for construction permits from the local urban planning department.
    • Ensure compliance with environmental regulations and building codes.

Key Contact:

5. Register for Tax Identification and VAT

After incorporating the company, you must register with the Moroccan Tax Authority to obtain a Tax Identification Number (Identifiant Fiscal). Manufacturing businesses may also need to register for Value Added Tax (VAT) depending on the type of goods being produced.

  • How to Do It:
    • Visit the local tax office in Laayoune or Dakhla to complete the registration process.
    • Provide the necessary documentation, such as the company’s Articles of Association and identification documents.

Key Contact:

6. Obtain Environmental Impact Assessment (EIA)

Depending on the nature of your manufacturing activities, Morocco requires an Environmental Impact Assessment (EIA) for certain industries. This is particularly relevant for industries that may have significant environmental impacts, such as those involving chemical or heavy industrial production.

  • How to Do It:
    • Submit an EIA report to the Ministry of Energy, Mines, and Environment for approval.
    • Work with environmental consultants to ensure that the plant complies with Moroccan environmental regulations.

Key Contact:

7. Apply for Industrial Licenses

Certain manufacturing sectors may require specific licenses or permits from the Moroccan government. For example, industries such as food processing, pharmaceuticals, and chemicals may need additional regulatory approvals.

  • How to Do It:
    • Contact the Moroccan Ministry of Industry and Trade to inquire about the required licenses for your particular sector.
    • Submit the necessary applications, including technical details of the manufacturing process and safety protocols.

Key Contact:

8. Set Up Utility Connections (Water, Electricity, Gas)

To operate a manufacturing plant, you will need to establish connections for utilities such as water, electricity, and gas. This can be coordinated through local utility companies in Western Sahara.

  • How to Do It:
    • Contact the local utility providers to arrange for connections.
    • Obtain estimates for the cost of utility services and ensure that your plant meets the technical requirements for installation.

Key Contacts:

9. Hire Employees and Register for Social Security

Once your plant is nearing operational readiness, you will need to hire local employees and register with the National Social Security Fund (CNSS). This ensures that your employees are covered by social security benefits, including pensions and health insurance.

  • How to Do It:
    • Register your company with the CNSS and provide employee details.
    • Ensure compliance with Moroccan labor laws, including minimum wage, working hours, and health and safety standards.

Key Contact:

10. Obtain Operational Licenses and Start Production

Finally, before you can officially start production, you will need to obtain any necessary operational licenses from the relevant Moroccan authorities. This may include inspections by health and safety regulators, fire safety officials, and labor inspectors.

  • How to Do It:
    • Contact the Moroccan Ministry of Industry and Trade or local authorities for the final operational licenses.
    • Arrange inspections and submit any additional documentation required for final approval.

Key Contact:

Trademark Registration in Western Sahara

Since Western Sahara is a disputed territory largely controlled by Morocco, the process for registering a trademark in Western Sahara follows Moroccan intellectual property law. All trademarks in Moroccan-controlled Western Sahara are registered through OMPIC (Moroccan Office for Industrial and Commercial Property), which is responsible for managing trademarks, patents, and other intellectual property rights in Morocco and the areas it controls, including Western Sahara. Below are the steps required to register a trademark in Western Sahara, along with related costs and key contacts.

1. Conduct a Trademark Search

Before registering a trademark, it’s essential to ensure that the trademark you want to register is unique and does not conflict with existing trademarks. This can be done by conducting a trademark search through OMPIC’s online database.

  • How to Do It:
    • Visit the OMPIC search portal to check if your desired trademark is already registered.
    • Conduct a search using keywords, the name of the trademark, or the owner’s name.

Cost:

  • Trademark search is free using OMPIC’s online platform.

Key Contact:

2. Prepare the Required Documents for Trademark Application

Once you have confirmed the availability of your trademark, you need to prepare the necessary documents for filing the application. The application must include specific details about the trademark, the applicant, and the goods or services associated with the trademark.

  • Required Documents:
    • Trademark application form (available on OMPIC’s website).
    • Clear representation of the trademark (logo or wordmark).
    • List of goods or services the trademark will cover, categorized according to the Nice Classification.
    • Identification documents of the applicant (individual or company).
    • Power of attorney, if you are using a legal representative or trademark agent to file on your behalf.

Key Contact:

3. Submit the Trademark Application

You can submit the trademark application either online through OMPIC’s portal or in-person at an OMPIC office. Online submission is generally faster and more convenient.

  • How to Do It:
    • Register an account on the OMPIC online filing portal or visit the nearest OMPIC office.
    • Complete the trademark application form and upload the necessary documents.
    • Pay the application fees (details below).

Cost:

  • MAD 1,000 (approx. USD 100) for the trademark application fee for one class of goods or services.
  • MAD 300 (approx. USD 30) for each additional class.

Key Contact:

4. Wait for Formal Examination

Once the application is submitted, OMPIC will conduct a formal examination of the application to ensure that it complies with Moroccan trademark registration requirements. This includes checking for completeness of the application, proper classification of goods/services, and compliance with regulations.

  • How to Do It:
    • No action is required from the applicant during this phase unless OMPIC requests additional information or documents.
    • Typically, the formal examination takes 2 to 6 months.

Key Contact:

5. Publication of the Trademark in the Official Bulletin

If your trademark application passes the formal examination, it will be published in the Official Bulletin to give third parties an opportunity to oppose the registration if they believe it infringes on their existing rights.

  • How to Do It:
    • The publication is handled automatically by OMPIC; no additional action is required by the applicant.
    • The opposition period lasts 60 days from the date of publication. During this time, third parties can file an opposition if they believe your trademark infringes on their rights.

Cost:

  • The publication fee is covered in the initial application fee.

Key Contact:

6. Respond to Opposition (if applicable)

If an opposition is filed against your trademark within the 60-day period, you will be notified by OMPIC. You will have the opportunity to respond to the opposition and defend your trademark.

  • How to Do It:
    • Hire a trademark attorney or legal representative to prepare a response to the opposition.
    • Submit the response to OMPIC within the given timeframe (typically 30 days).

Key Contact:

7. Registration and Issuance of Trademark Certificate

If no opposition is filed (or if the opposition is resolved in your favor), OMPIC will proceed with the registration of your trademark and issue a Certificate of Registration. Once registered, the trademark is valid for 10 years from the date of filing and can be renewed indefinitely for consecutive 10-year periods.

  • How to Do It:
    • OMPIC will notify you when the trademark is successfully registered.
    • You can request a Certificate of Registration, which officially confirms your exclusive rights to use the trademark in Morocco and Moroccan-controlled Western Sahara.

Cost:

  • MAD 1,000 (approx. USD 100) for the registration fee.

Key Contact:

8. Renewal of Trademark (After 10 Years)

Trademarks in Moroccan-controlled Western Sahara are valid for 10 years and must be renewed to remain in force. You can renew the trademark within 6 months before or 6 months after the expiration date.

  • How to Do It:
    • Submit a renewal application to OMPIC before the expiration of the 10-year period.
    • The renewal process is similar to the initial application, but no new examination is required.

Cost:

  • MAD 1,000 (approx. USD 100) for the renewal fee per class of goods or services.

Key Contact:

Commercial Dispute Resolution in Western Sahara

Resolving commercial disputes in Western Sahara follows the Moroccan legal system, as much of the territory is under Moroccan control. Commercial disputes are typically handled through Moroccan courts, primarily the Commercial Courts (Tribunal de Commerce), which operate in Moroccan-controlled regions such as Laayoune and Dakhla. Additionally, alternative dispute resolution methods such as arbitration and mediation are available. Below is an overview of the process for resolving commercial disputes, including costs and key contacts.

1. Attempt Amicable Settlement (Negotiation)

Before resorting to formal legal proceedings, businesses are encouraged to attempt an amicable settlement through negotiation. This step can often save time and money by avoiding lengthy court procedures.

  • How to Do It:
    • Engage in direct negotiations with the other party to try to resolve the dispute.
    • Involve legal representatives or business consultants to mediate discussions.
    • Draft a settlement agreement if an agreement is reached, outlining the terms and conditions of the resolution.

Cost:

  • No direct cost, but you may incur legal fees if you involve attorneys or consultants.

Key Contact:

  • Local Business Consultants and Legal Firms
    It is advisable to engage a qualified Moroccan lawyer or business advisor to assist with negotiations.

2. Engage in Mediation or Arbitration (Alternative Dispute Resolution)

If negotiations fail, parties may opt for Alternative Dispute Resolution (ADR) methods such as mediation or arbitration, both of which are recognized under Moroccan law. ADR is often faster and less expensive than court proceedings.

  • Mediation: A neutral third party helps both sides reach a mutually agreeable solution.
  • Arbitration: A neutral arbitrator hears both sides of the dispute and renders a binding decision.
  • How to Do It:
    • Agree with the other party to submit the dispute to a mediation center or arbitration tribunal.
    • Prepare a written arbitration clause if one is not already included in the original contract.
    • For arbitration, ensure that the arbitrator is recognized by a reputable arbitration institution.

Cost:

  • Mediation: Approx. MAD 5,000 – 20,000 (USD 500 – 2,000) depending on the complexity of the dispute and the mediator’s fees.
  • Arbitration: Costs vary depending on the arbitrator’s fees and the arbitration institution, typically ranging from MAD 10,000 – 50,000 (USD 1,000 – 5,000).

Key Contact:

3. File a Case with the Commercial Court

If negotiations or ADR fail, the next step is to file a formal lawsuit with the Commercial Court in the region where the dispute occurred (e.g., Laayoune or Dakhla). The Commercial Courts handle disputes between businesses regarding contracts, payments, and commercial transactions.

  • How to Do It:
    • Hire a commercial lawyer to file a statement of claim on your behalf.
    • Submit all relevant documentation, including contracts, invoices, and correspondence, to support your case.
    • The court will notify the other party and schedule hearings to present evidence and arguments.

Cost:

  • Court filing fees: Approx. MAD 1,500 – 5,000 (USD 150 – 500), depending on the amount in dispute.
  • Attorney fees: Varies based on the complexity of the case and the lawyer’s experience, typically ranging from MAD 10,000 – 50,000 (USD 1,000 – 5,000).

Key Contact:

4. Attend Court Hearings and Present Evidence

Once the case is filed, the Commercial Court will schedule hearings. During these hearings, both parties will present their arguments and evidence. The court may request additional documentation or witness testimony.

  • How to Do It:
    • Ensure your legal team is well-prepared to present evidence and argue your case.
    • Gather all necessary documentation, including contracts, invoices, and emails relevant to the dispute.
    • Attend court hearings as required.

Cost:

  • Court hearing fees are generally included in the initial filing fees, but additional costs may arise if there are expert witness fees or document translation fees for non-French or Arabic documents.

Key Contact:

5. Receive the Court’s Judgment

After the hearings, the court will issue a judgment based on the evidence presented. If the judgment is in your favor, the court may order the other party to pay damages, fulfill contractual obligations, or take other actions to resolve the dispute.

  • How to Do It:
    • Once the judgment is issued, your legal team will notify you of the outcome.
    • If the judgment is in your favor, the other party will be legally obliged to comply with the court’s decision.

Cost:

  • No additional court fees for receiving the judgment, but there may be enforcement costs if the judgment is not voluntarily complied with.

Key Contact:

6. Enforce the Court’s Judgment

If the losing party fails to comply voluntarily with the court’s judgment, you may need to take steps to enforce the judgment. This could involve seizing assets or other legal measures to recover what is owed.

  • How to Do It:
    • File for enforcement with the court, which may involve additional legal action such as seizing assets or freezing bank accounts.
    • Your legal team will guide you through the process of enforcing the judgment.

Cost:

  • Enforcement costs vary depending on the method of enforcement, typically ranging from MAD 5,000 – 10,000 (USD 500 – 1,000).

Key Contact:

7. Appeal the Court’s Decision (If Necessary)

If you are not satisfied with the court’s decision, you may have the right to appeal the judgment to a higher court. Appeals must be filed within a specific time frame (usually 30 days from the date of the judgment).

  • How to Do It:
    • Work with your attorney to file an appeal with the Court of Appeal.
    • The appeal process involves a review of the original case and may require additional hearings.

Cost:

  • Appeal filing fees: Approx. MAD 3,000 – 10,000 (USD 300 – 1,000), depending on the complexity of the case.
  • Attorney fees: Varies, but typically higher than for first-instance cases.

Key Contact:

Other Notes on Doing Business with Western Sahara

Doing business in Western Sahara presents unique challenges and opportunities due to the region’s complex political status, cultural dynamics, and legal systems. As a disputed territory, Western Sahara is largely administered by Morocco, which applies Moroccan laws and regulations in the areas under its control. Understanding the social, cultural, political, and economic environment is essential for businesses looking to operate in this region. Below is an overview of the key factors to consider before entering the Western Sahara market.

1. Political and Legal Environment

Political Status

Western Sahara is a disputed territory that has been the subject of a long-standing conflict between Morocco and the Polisario Front, which seeks independence for the region. While Morocco controls most of Western Sahara, particularly the coastal cities of Laayoune and Dakhla, the United Nations continues to classify the region as a non-self-governing territory.

This political situation can create uncertainty for businesses, especially regarding international relations and potential future changes in governance. However, Morocco has implemented a de facto administration in the region, and Moroccan laws, including those governing business, taxation, and commercial disputes, are applied in Moroccan-controlled areas of Western Sahara.

Rule of Law

The rule of law in Western Sahara is based on the Moroccan legal framework, which provides a relatively stable and predictable environment for businesses. The Moroccan government has invested heavily in infrastructure and development in the region, particularly in cities like Laayoune and Dakhla, which are becoming hubs for trade and tourism.

  • Judicial System: Businesses operating in Western Sahara will interact with Moroccan courts, including Commercial Courts for dispute resolution. The legal system is based on civil law, and the judiciary is generally viewed as functioning, though businesses should be aware of the potential influence of political factors.
  • Security: The region is generally stable, particularly in areas under Moroccan control, though businesses should stay informed about any political developments that could affect operations.

2. Social and Cultural Factors

Cultural Sensitivity

Western Sahara’s population is predominantly Saharan Arab and Berber, with deep-rooted tribal traditions and Islamic cultural practices. Understanding the local culture is essential for building successful business relationships in the region. This includes adhering to Islamic customs, such as observing public holidays like Eid al-Fitr and Eid al-Adha, and respecting traditional values.

  • Language: The official language is Arabic, and Hassaniya Arabic (a local dialect) is widely spoken. French is also commonly used in business and government contexts due to Morocco’s colonial history. It is advisable for foreign businesses to have documents translated into Arabic or French.
  • Business Etiquette: Personal relationships and trust are highly valued in business dealings. Taking the time to build rapport with local partners and demonstrating respect for local customs can facilitate smoother business operations.

Labor Force

The labor force in Western Sahara is relatively small but growing, with the Moroccan government encouraging investment and job creation in the region. There is a mix of local Sahrawi workers and Moroccan settlers, and understanding the local labor dynamics is important for businesses.

  • Labor Laws: The labor laws in Western Sahara follow Moroccan labor regulations, which provide protections for workers, including minimum wage requirements, working hours, and social security benefits. Employers must register with the National Social Security Fund (CNSS) and ensure compliance with Moroccan labor standards.

Corporate Social Responsibility (CSR)

Given the political sensitivity of the region, businesses may face international scrutiny regarding their operations in Western Sahara. Companies are encouraged to adopt corporate social responsibility (CSR) policies that benefit local communities, such as investing in education, healthcare, or infrastructure. Demonstrating a commitment to improving the local economy and social conditions can enhance a business’s reputation both locally and internationally.

3. Economic and Foreign Exchange Environment

Currency and Foreign Exchange

Western Sahara uses the Moroccan dirham (MAD) as its official currency, which is regulated by the Moroccan central bank, Bank Al-Maghrib. The dirham is a relatively stable currency, and while it is not fully convertible on international markets, it can be exchanged for major currencies such as the US dollar (USD) or euro (EUR) within Morocco.

  • Currency Controls: Morocco has foreign exchange controls in place, meaning that businesses must comply with regulations regarding the conversion of dirhams into foreign currencies and the repatriation of profits. These regulations are overseen by Morocco’s Exchange Office.
  • Banking: Several Moroccan and international banks operate in the region, providing services such as trade financing, foreign exchange, and corporate banking. It is advisable for businesses to establish relationships with local banks to facilitate smooth financial operations.

Investment Incentives

The Moroccan government offers various incentives to attract investment to Western Sahara, particularly in sectors such as renewable energy, fishing, tourism, and phosphate mining. These incentives include tax breaks, subsidies, and reduced import duties on equipment.

  • Free Trade Zones: There are free trade zones in Laayoune and Dakhla, offering businesses tax exemptions and streamlined customs procedures. These zones are designed to attract foreign investment and boost exports from the region.

4. Infrastructure and Logistics

Transport Infrastructure

Morocco has heavily invested in the infrastructure of Western Sahara, developing modern roads, airports, and ports to enhance connectivity. Key infrastructure developments include:

  • Ports: The port of Dakhla is a strategic hub for trade with West Africa and Europe. It supports fishing exports and other industries and is expected to expand further in the coming years.
  • Airports: Laayoune Hassan I Airport and Dakhla Airport offer regular flights to other parts of Morocco and some international destinations.
  • Roads: The region’s road network connects Western Sahara to major Moroccan cities like Agadir and Casablanca, facilitating the movement of goods and people.

Energy and Utilities

The Moroccan government is also promoting renewable energy in Western Sahara, particularly solar and wind energy projects. Businesses may benefit from lower energy costs and incentives for using renewable energy sources.

  • Water Supply: Water is a scarce resource in the region, and businesses involved in industries that require large amounts of water (such as manufacturing or agriculture) need to consider the availability and cost of water supplies.

5. International Relations and Trade

Trade Relations and Sanctions

Western Sahara’s political status means that businesses must carefully consider international trade regulations. Some countries and organizations, such as the European Union, have special agreements with Morocco that include Western Sahara, while others may impose restrictions or sanctions on goods originating from the region due to the ongoing dispute.

  • EU-Morocco Trade Agreements: The European Court of Justice (ECJ) has ruled that trade agreements between the EU and Morocco do not automatically apply to Western Sahara unless there is explicit consent from the Sahrawi people. This has created some legal uncertainties for businesses trading with the EU.
  • United Nations: The UN continues to advocate for a referendum on the status of Western Sahara, which could impact business operations in the future. Businesses should stay informed about any developments in the UN-mediated peace process.

6. Foreign Direct Investment (FDI) and International Business

Western Sahara is increasingly seen as a frontier market for foreign direct investment (FDI). Morocco has positioned the region as a gateway to Africa and has developed special economic zones to attract FDI. However, businesses should be aware of the political sensitivities and ensure that their investments comply with both Moroccan law and international guidelines.

  • Investment Risks: While the region offers opportunities, particularly in the energy and natural resources sectors, businesses need to assess the geopolitical risks associated with operating in a disputed territory. International businesses might face reputational risks depending on their home country’s stance on the Western Sahara issue.

Relevant URLs and Key Contacts

  1. Moroccan Investment and Export Development Agency (AMDIE)
    Website: https://www.amdie.gov.ma
  2. Moroccan Ministry of Industry and Trade
    Website: https://www.mcinet.gov.ma
  3. Moroccan Ministry of Energy, Mines, and Environment
    Website: https://www.mem.gov.ma
  4. Laayoune Municipal Office
    Website: https://www.laayoune.ma
  5. Dakhla Municipal Office
    Website: https://www.dakhla.ma
  6. Bank Al-Maghrib (Central Bank of Morocco)
    Website: https://www.bkam.ma
  7. Morocco’s Exchange Office
    Website: https://www.oc.gov.ma
  8. National Social Security Fund (CNSS)
    Website: https://www.cnss.ma
  9. United Nations Mission for the Referendum in Western Sahara (MINURSO)
    Website: https://minurso.unmissions.org

Our Members Include Leading Organizations in Western Sahara

zwak group afghanistan - member of the international trade council
HUDA Afghanistan - Member of the International Trade Council
MGTWELL - Member of the International Trade Council in Afghanistan
AWAL - Member of the International Trade Council in Afghanistan
Pakistan Afghanistan Joint Chamber of Commerce and Industry - Member of the International Trade Council

Ask our Experts on Doing Business in/with Western Sahara

If you’re looking to do business or invest in Western Sahara, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.

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