How can a foreigner open a company in Algeria

If you are thinking about entering the international market of the African continent, then Algeria is one of the countries where there are many advantages for starting a business.

Benefits of registering a company in Algeria

• Simplification of the procedure for registering a business in the country in connection with the plans of the government to remove the minimum capital requirements for starting a local business.
• Algeria's public sectors such as tourism, agriculture, renewable energy are benefiting from development policies and programs that are under development.
• Algeria is also strategically close to European, African and Arab markets.
• Algeria has a large skilled, young and competitive workforce.
• Studying in Algeria is compulsory and offers professional training.
• Enterprises investing in the national economy will be exempt from paying tax for a certain period, described in the relevant projects.
• The Algerian government encourages investment in the agricultural sector.
• Algerian banks offer attractive lending programs for non-residents who wish to invest here and build financial relationships.

Registration process

• Before you can register a company in Algeria, you must sign an office lease.
• Documents must be translated into Arabic, French or Berber, although most people speak French.
• It is possible to register a company in Algeria without a personal visit and opening an account for a remote company.
• To set up a remote company in Algeria, you need 14 days to sign contracts.
• To open a company in Algeria, you need at least $1,000 in registered capital.
• Foreigners are not entitled to full ownership of Algerian companies and must find a resident partner for 51% of the joint venture.
• Check the availability and uniqueness of the company name with the Center National du Commerce (CNRC) or the Commercial Registry. The company is also obliged to select the necessary registration forms. The applicant company must then complete the form, list the 4 proposed company names, and pay the search fees. The Commercial Register will then verify the name and issue the certificate on the same day.
• Starting capital must be paid into the bank. The applicant company will then receive a certificate of deposit. This is expected to take approximately 1 day and at no additional cost.
• The applicant company will then have to publish the company's articles of association in a law journal, i.e. in the Bulletin of Legal Announcements. It usually takes 1 day.
• The applicant company will apply to register a company with the CNRC within 2 months of the company's incorporation.
• The company must then pay stamp duty and receive a receipt. This must be paid to the tax authority and the CNRC. It takes 1 day.
• Register for income tax and value added tax (VAT). This must be done at the tax office. After registration, the tax authority will issue a certificate of availability and a tax card within 2-5 days.
• The company must register with the Caisse Nationale des Assurances Sociales des Travailleurs Salaries (CNAS). This is National Social Security and is mainly for company employees.
• You need to make a company seal.
• Account books must be stamped in court. There should be 4 in total.
• It is possible to register a company in Algeria without a personal visit and opening an account for a remote company. To set up a remote company in Algeria, you need 14 days to sign contracts. The company will be fully operational and profitable in 4 months.

Types of companies in Algeria

• Societe a Responsibilite Limitee — it is the most common registered form of business. The requirements for this company are that it must have a minimum paid up capital of 100,000 Algerian dinars, which is divisible by 1,000 dinars per share. The company must also have at least 1 shareholder and 1 director. If a foreign company is one of its shareholders, it can own a maximum of 49% of the shares. The remaining 51% must be owned by the Algerian. If the share capital exceeds $120,000, there is no need for audited account statements.
• Company with a collective name (Societe en Nom Collectif) — also known as partnership. He must have at least 2 partners. There is no minimum capital requirement.
• Societe en Commandite Simple — it is also a partner company with 2 types of partners. One is known as an active partner who is responsible for running the company. This partner is also jointly and severally liable for all debts of the company. The other partner is a limited partner. As the name suggests, this partner's liability is limited to his/her share in the company. This person is not in business and is sometimes known as a "sleeper partner".
• Uni-personal Company Limited (Entreprise Uni-personelle a Responsibilite Limitee) — also known as company-individual.
• Joint stock company. This type of company must have at least 7 shareholders and they are limited to equity only. The authorized capital must be at least 5 million dinars if the company attracts deposits from the public. Otherwise, the authorized capital is at least 1 million dinars. The company will be managed by a board of directors.

Registration of a branch in Algeria

The following documents are required to register a branch in Algeria:

• Various legal documents of the parent corporation certified by the embassy.
• Meeting decision from sponsors.
• A power of attorney (the authority of someone) that must work for the benefit of the parent organization.
• The registration process usually takes about a month.