MOROCCO Law and Practice Contributed by: Loris Marghieri, Dounia El Aissaoui, Julien Nouchi and Mounia Larhrissi, Gide Loyrette Nouel
separate permit issued after assessment by the local planning authority. • By Order No 338-20 of 21 January 2020, a dematerialised procedure was set up for the submission and processing of applications for town planning authorisation, via an online platform known as Rokhas. 4.5 Right of Appeal Against an Authority’s Decision As an administrative act, any decision taken by the authorities must be justified and may be appealed before the relevant authority and/or the administrative courts. A lawsuit may also be filed by third parties with a specific interest that deserves protection before the administrative authority or before the court, by asking for the decision to be annulled. 4.6 Agreements With Local or Governmental Authorities There is generally no need to enter into agree - ments with local or government authorities or agencies, or utility suppliers, in order to facilitate a development project. 4.7 Enforcement of Restrictions on Development and Designated Use Failure to comply with the applicable building and planning regulations may result in: • closure of the site in the absence of a valid building permit; • the obligation to modify the building to bring it into compliance with the regulations in force; or • the obligation to demolish the construction work. In all cases, the offender is liable to a fine ranging from MAD1,000 to MAD100,000.
Furthermore, anyone who continues operating a project despite being notified of the site’s clo - sure may face imprisonment for a period of 15 days to three months. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Real estate assets may be purchased by either natural individuals or legal entities. Companies usually possess substantial or valuable assets, with the most popular corporate forms including: • the joint stock company ( société anonyme – SA) governed by Law No 17-95 (as amend - ed); • the simplified joint stock company ( société par actions simplifiée – SAS) governed by Law No 5-96 (as amended); • the limited liability company ( société à responsabilité limitée – SARL) governed by Law No 5-96 (as amended); and • the real estate civil company ( société civile immobilière – SCI) governed by the Moroccan Obligations and Contracts Code. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity The types of companies mentioned in 5.1 Types of Entities Available to Investors to Hold Real Estate Assets are generally subject to corpo - rate income tax (CIT) in Morocco, except for “transparent” property companies as defined by the tax code. These are real estate companies divided into nominative shares, where members directly benefit from rights to the property, by either occupying a unit or freely disposing of a portion of the property.
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