5 Things to Know Before Starting up a Business in Morocco
Having the bravery to launch and run a business in Morocco has the potential to make you a very successful business entrepreneur. Among African countries, Morocco has the sixth-highest GDP (Gross Domestic Product) at PPP (Purchasing Power Parity). Morocco is the fifth largest Arab country. Compared to other countries in the Arab world, Morocco is considered poor, but the main reason other Arab countries are so wealthy is because of their abundance of oil. There is a lot of income inequality in Morocco, but that does not mean a new business cannot succeed. For a few years, the Moroccan government has committed itself to liberate its economy, which means that there have been many legal changes in the region to increase the growth of local as well as foreign companies. To help you gain a better understanding, here are 5 things you need to know before starting up a business in Morocco.
Learn to Communicate
In Morocco, people are said to be poor communicators. They tend to be good at using mobile apps, such as Messenger, WhatsApp and IMO, however, many professionals have been reported to be slow to reply or in many cases, they just won’t get back to you and say that they never received the message. It can be difficult to deal with this lack of communication, but if someone wants to work with you, they will get back in touch after you have tried to get hold of them. Getting yourself familiar with the French dialect that the majority of Moroccans speak will improve your communication skills there.
Understand Their Taxes
If you are physically present in Morocco, or if you have a place of residence there, then you will be taxable. There is a personal income tax in Morocco which applies if you have earned income in the country. No matter where the individual’s activity or nationality originates from, they will be subject to paying personal income tax if they have their Moroccan habitual residence. Corporate tax is a big one to understand when setting up a business in Morocco, and the rate is around 30%.
Find Good Suppliers
Suppliers have the power to be your best friends or your worst enemies. Sometimes, having a regular supplier can be more hassle than not, which can come as a surprise to many people. You need to make sure you always keep in close contact with your suppliers and check up on them regularly. It can feel like you are being too much at first, but over time you will realize that you need to do so to remind them that they have a deadline. Finding good suppliers also means finding the best ways to run your business, such as the best business energy rates, which can be looked upon at a site like Utility Bidder.
Encourage All Feedback
Feedback is not something that is common in the Moroccan culture. This means people don’t tend to encourage, thank or congratulate. If a client doesn’t comment on your work, then it normally means that everything is okay. It isn’t unusual for a client to decide to work with other companies without explaining their decision. Without feedback, you never know what the client’s problem was, which can be difficult to deal with because you don’t know how to improve your business to ensure you don’t continue to lose clients. To help you gain a better understanding, when you first approach your client, do your best to make them aware of feedback and why it helps in the business world.
Nothing is Easy
When running a successful business in Morocco, you need to make sure you don’t rush things. Most of the time, things won’t move at a speed that suits you. Whether this involves personnel, administration, clients or suppliers, there will always be a reason why it isn’t ready on time or is ready too soon. Sometimes, the prospect wants to work with you, but will wait to watch you grow before they commit by signing up with you. This can lead to many issues because you are running a business so there are bills, salaries, clients, rent and suppliers to pay and if you aren’t getting your money on time, there will be delays in these payments.
There are a number of things you need to know before you open a company in Morocco, especially as a foreigner. Doing your research and being well informed is the first and most important step before setting up any kind of company, especially if you are thinking about moving your business abroad. The lack of knowledge and understanding is the main regret new Moroccan business owners have.
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