Freelancing: A How-To Guide
16 January 2012
Read by 1789 persons
The idea of working for oneself has crossed the minds of many employees, but few have actually launched into entrepreneurship.
Many people look for small jobs to supplement their income. This practice is very common in Western countries and is constantly increasing in the Moroccan market. Employees sought Moroccan jobs, students did not hesitate to work for foreigners and receive salaries in foreign currencies that they kept on payment sites like Paypal or Moneybookers to pay for their online purchases (on foreign sites, of course) before the Office des Changes authorized these purchases by granting an annual allowance. Furthermore, while some people only freelance occasionally, others have made it their profession. "What pushes them to convert, as they are often former employees, is a taste for risk and a thirst for freedom. But also the youthful enthusiasm, especially when you have no commitments," emphasizes A.D., a former freelancer currently employed in a financial company. However, it should be noted that those who convert to full-time freelancing are driven by entrepreneurial fever but also have a certain level of professional maturity, because before embarking on it, you must have expertise to sell.
What legal form?
Thus, to become a freelancer, you must have at least 4 to 5 years of experience and be able to touch on areas and professions other than your own. Indeed, to be able to invoice your working hours, the freelancer must have at least a business license, or even set up a company in the form of a SARL (simplified limited company) or a partnership. The advantage of these company forms is that they do not require any minimum capital contribution, including for SARLs since the entry into force of the amending law, number 24-10 in July 2011 (before, the minimum capital of an SARL was set at 10,000 DH). This law also introduced simplified procedures for creating your company. This structuring would lead to the payment of taxes, business license, IR (income tax) or IS (corporate tax) for those who choose it. This tax can represent between 30% and 40% of income. A level considered high by freelancers given the irregularity of income, pushing some to accept working informally, being paid in cash, or invoicing their client through licensed friends or via an established company that receives a rather "unfair" commission because it did not contribute in any way to the mission but only issued an invoice using its name. All things being equal, organizing as a natural person with the status of a trader or as a partnership results in both a business license and IR, particularly on professional income. But the best form, to benefit from possible exemptions, remains that of a company. Indeed, the business license is a tax paid by all persons, natural or legal, carrying out an industrial or commercial activity. Its rate is set at 10% of the rental value. However, industrial, tourism, commercial, craft, real estate development or land subdivision companies are not subject to this tax until 5 years after the start of their activity.
To make life easier
Similarly, in terms of IR, exemptions are greater for companies. In any case, and regardless of the form the freelancer has chosen to carry out their activity, it should be known that they have the right to subscribe to health insurance either with the CNSS (National Social Security Fund), or with an insurance company. Moreover, those who do not want too much hassle or need expert advice can contact intermediary companies. The best known of these companies and the oldest on the market is Freelance.com. Established in the Moroccan market since 2010, this subsidiary of the French company of the same name offers its clientele, which currently includes 2,500 freelancers, a range of diversified services. According to its CEO, Mohamed Benboubker, "Freelance.com has established agreements with accounting firms, insurance companies and banks. The goal is to make life easier for freelancers who can complete all their procedures in 48 hours. In addition, our sales advisors are available to assist them in these procedures." Freelance.com currently offers 200 missions, 80% of which concern IT and the rest is divided between communication, advertising and consulting, and levies a 20% commission ultimately invoiced to the company through the freelancer. Convinced? In any case, you should know that those who have converted to employment after a freelancing experience are tempted to relive the experience, but by embarking on real projects and creating their own companies.
Sara Bar-Rhout.
Lesoir-echos.com
Published January 16, 2012.
Posted online January 16, 2012.
Many people look for small jobs to supplement their income. This practice is very common in Western countries and is constantly increasing in the Moroccan market. Employees sought Moroccan jobs, students did not hesitate to work for foreigners and receive salaries in foreign currencies that they kept on payment sites like Paypal or Moneybookers to pay for their online purchases (on foreign sites, of course) before the Office des Changes authorized these purchases by granting an annual allowance. Furthermore, while some people only freelance occasionally, others have made it their profession. "What pushes them to convert, as they are often former employees, is a taste for risk and a thirst for freedom. But also the youthful enthusiasm, especially when you have no commitments," emphasizes A.D., a former freelancer currently employed in a financial company. However, it should be noted that those who convert to full-time freelancing are driven by entrepreneurial fever but also have a certain level of professional maturity, because before embarking on it, you must have expertise to sell.
What legal form?
Thus, to become a freelancer, you must have at least 4 to 5 years of experience and be able to touch on areas and professions other than your own. Indeed, to be able to invoice your working hours, the freelancer must have at least a business license, or even set up a company in the form of a SARL (simplified limited company) or a partnership. The advantage of these company forms is that they do not require any minimum capital contribution, including for SARLs since the entry into force of the amending law, number 24-10 in July 2011 (before, the minimum capital of an SARL was set at 10,000 DH). This law also introduced simplified procedures for creating your company. This structuring would lead to the payment of taxes, business license, IR (income tax) or IS (corporate tax) for those who choose it. This tax can represent between 30% and 40% of income. A level considered high by freelancers given the irregularity of income, pushing some to accept working informally, being paid in cash, or invoicing their client through licensed friends or via an established company that receives a rather "unfair" commission because it did not contribute in any way to the mission but only issued an invoice using its name. All things being equal, organizing as a natural person with the status of a trader or as a partnership results in both a business license and IR, particularly on professional income. But the best form, to benefit from possible exemptions, remains that of a company. Indeed, the business license is a tax paid by all persons, natural or legal, carrying out an industrial or commercial activity. Its rate is set at 10% of the rental value. However, industrial, tourism, commercial, craft, real estate development or land subdivision companies are not subject to this tax until 5 years after the start of their activity.
To make life easier
Similarly, in terms of IR, exemptions are greater for companies. In any case, and regardless of the form the freelancer has chosen to carry out their activity, it should be known that they have the right to subscribe to health insurance either with the CNSS (National Social Security Fund), or with an insurance company. Moreover, those who do not want too much hassle or need expert advice can contact intermediary companies. The best known of these companies and the oldest on the market is Freelance.com. Established in the Moroccan market since 2010, this subsidiary of the French company of the same name offers its clientele, which currently includes 2,500 freelancers, a range of diversified services. According to its CEO, Mohamed Benboubker, "Freelance.com has established agreements with accounting firms, insurance companies and banks. The goal is to make life easier for freelancers who can complete all their procedures in 48 hours. In addition, our sales advisors are available to assist them in these procedures." Freelance.com currently offers 200 missions, 80% of which concern IT and the rest is divided between communication, advertising and consulting, and levies a 20% commission ultimately invoiced to the company through the freelancer. Convinced? In any case, you should know that those who have converted to employment after a freelancing experience are tempted to relive the experience, but by embarking on real projects and creating their own companies.
Sara Bar-Rhout.
Lesoir-echos.com
Published January 16, 2012.
Posted online January 16, 2012.
