Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in Algeria

Company Registration in AlgeriaAlgeria is one of the countries that have a lot of ways to live. It is because of the several active and growing sectors. Local authorities have also set up a series of incentives to attract more foreign investments. Moreover, its proximity with Europe is favourable to industrial relocation. A good thing to expect is lower overhead costs. Not forgetting that their labour costs are also pretty low.


Company Registration in Algeria

Company registration in Algeria might not be that easy. Be familiarized with the two types of companies that can consider registering in Algeria, either a local or foreign company.

 Limited Liability Company (LLC)

  • One shareholder and director are required to start a limited liability company (LLC) in Algeria.
  • As Algerian Company Law doesn’t allow foreigners from acquiring a majority share (>49%) in Algerian Companies, prospective businessmen will need a national to serve as their local joint venture partner for Algeria business setup.
  • LLCs with an annual turnover of more than US$120,000 are required to appoint at least one auditor. Failure to comply will result in a fine.

Public Limited Company (PLC)

  • Three directors and seven shareholders will be required to incorporate an Algerian PLC.
  • At least one of the shareholders must be of Algerian nationality and locals must hold 51% of the company’s share capital.
  • It isn’t mandatory for a PLC to list on the stock exchange.
  • The company must appoint an auditor from a list of approved experts to act as a statutory auditor for three years.

The Algerian Government has forbidden the incorporation of branches of a foreign company.

Representative Office (RO)

  • 100% foreign-owned
  • May only engage in market research and promoting the business of the parent company.
  • The incorporation of a RO, will require
    • an accreditation from the authorities every two years
    • A US$20,000 deposit
    • An Algerian Dinars corporate account that is convertible with a minimum deposit that suit to 3 months of operating costs.

It takes 12 to 16 weeks to process incorporation. It also takes almost 5 weeks before you can open a corporate bank account. You might spend almost US$12,450 to set up. They require a minimum capital of US$1,000. A few key points to take note of is the corporate tax rate is 26%. Under Algerian law, foreigners cannot own 100% of the company. Memorandum and Articles of Association are needed as well as a tax registration certificate.


Why Invest in Algeria?

There are some benefits on why to set up a business in Algeria. One would definitely be the low overhead cost. Business owners should be aware of low-cost gas, fuel and electricity. In addition, labour costs, minimum 18,000 Algerian Dinars, is very low. There are a few sectors that are worth investing in. The first would be the oil and gas industry. Algeria is ranked within the world’s top ten producers of both oil and natural gas. There’s an expectation of new investment due to inadequacy of the existing infrastructure. The undersea gas pipelines formation to Europe is becoming one of the contributing factors that’s why offshore exploitation got more investors.

Algeria is the home of the third-largest reserves of recoverable shale gas in the world. To encourage foreign investments in unconventional gas exploration and exploitation, a new hydrocarbon law was established in 2013. To meet the continuous growth in domestic consumption, Algeria aims to invest and risk US$120 billion in the year 2030 for renewable energies. The Algerians are tech-savvy and interested in technology. Government ministries are looking forward in process innovation and using digital in record-keeping. The Internet usage of businesses are mostly over 40% while home internet rates stay below 10%. Even there is ban on the pharmaceuticals import that produced domestically, the healthcare sector simultaneously attracts the market.

Medical equipment and disposals are highly getting attention from consumer and dependent upon imported goods. The standard living of the people is improving but slowly. There are a lot of instances where there are high reports of hypertension, diabetes, respiratory and cardiovascular diseases, and allergies.

Company Registration in Algeria

The process of business registration in Algeria is quite easy when it is discussed in details but it can also be quite hard and confusing. We can assist and provide you with these services to ensure a smooth integration into the economy in Algeria.