Corporate Law at Western Sahara
Western Sahara is a disputed territory with limited internationally recognized governance and no fully established, widely accepted legal system governing corporate law as in sovereign states. Here’s a breakdown to clarify the situation:
🏜️ Corporate Law in Western Sahara: Overview
1. Political and Legal Status
Western Sahara is a non-self-governing territory claimed by both the Sahrawi Arab Democratic Republic (SADR) and Morocco.
Morocco controls about 80% of the territory and administers it as its Southern Provinces.
The SADR, proclaimed by the Polisario Front, controls parts of the territory and operates a government-in-exile.
Due to this unresolved dispute, there is no unified corporate legal system applicable exclusively to Western Sahara.
2. Legal Frameworks Applicable
In Moroccan-controlled areas, Moroccan law applies, including Moroccan corporate law, which governs company formation, management, and commercial activities.
Moroccan corporate law includes:
The Moroccan Companies Law (Code des Sociétés)
Investment laws regulating domestic and foreign companies
In areas controlled by the SADR, there is no internationally recognized legal framework for corporate activity; governance is limited and mostly political/military.
3. Practical Business Reality
Business and corporate activities in the region primarily follow Moroccan legal and regulatory frameworks, especially in urban centers under Moroccan administration.
Foreign or local investors operating in the region generally register companies under Moroccan jurisdiction.
International companies often avoid investing directly in Western Sahara due to political sensitivities and legal uncertainties.
4. International Perspective and Compliance
The status of Western Sahara is the subject of ongoing UN negotiations.
Many countries and international organizations view Western Sahara as a non-self-governing territory.
Companies must exercise caution and conduct due diligence regarding investment in Western Sahara, considering international laws on occupied territories, human rights, and natural resources.
5. Summary
No distinct, formal corporate law regime specific to Western Sahara exists independent of Moroccan law.
Business regulation in the region is effectively under Moroccan corporate and commercial law.
Political and legal uncertainty affects corporate and investment activities.
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