Start a business in Algeria

Setting up a business in Algeria
Updated 2015-04-13 12:19

Do you intend to set up a business in Algeria? Find out in this article what are the formalities to be filled in by foreigners.

Algeria is known to be a resourceful country thanks to many active and developing sectors. If you are planning to move there, and why not set up a business there, you will probably be surprised by the number of opportunities it provides. Indeed, local authorities have set up a series of incentives so as to attract more foreign investments. Moreover, its proximity with Europe is favorable to industrial relocation. So if you wish to set up a business there, start by inquiring on related conditions and formalities to be filled in beforehand.

Good to know:

By setting up a business in Algeria, you can expect low-cost gas, fuel and electricity. You can also hire qualified staff, according to the particular field, since salaries offered in the country are not so high. In fact, the minimum salary amounts to some 18,000 Algerian dinars.

Key sectors

Potential investors can prospect almost all sectors in Algeria. However, some of these, such as tobacco production and hydrocarbons, may be subject to restrictions. The textile industry has also been declining for a few years.

In 2012, foreign investments in Algeria accounted as follows: 49% in the industry field, 15% in the construction field, 11% in tourism, 9% in transports, 8% in the services field and finally, 4% in telecommunications.

Types of companies

There are four legal types of companies in Algeria: the Limited Liability Company (LLC), the Corporation, the Partnership Company and the Limited Shares Company.

In the case of the Limited Liability Company, a minimum capital of 100,000 dinars divided into 1,000 dinars shares is required. Partners' liabilities are limited to the amount of their contributions.

The Corporation, for its part, requires a minimum capital of 1 million Algerian dinars and a minimum of seven shareholders whose liability will depend on the amount contributed.

The Partnership Company, just like the Limited Shares Company, does not require a minimum capital. Moreover, partners have joint and defined liabilities. Note that the Limited Shared Company can have two types of partners: general partners and limited partners. In this case, liabilities will depend on the amount contributed.


In general, procedures regarding the setting up of a company in Algeria should take about a month. First of all, you are required to obtain a registration certificate from the National Trade Registration Center. This organization will approve your chosen company name's authenticity and uniqueness. The form can be requested at the trade registration center and has to be duly filled and signed, including four company names. Note that fees of 490 dinars apply, along with a tax stamp.

Thereafter, you will have to deposit the required capital in an Algerian bank in the presence of a public notary. A deposit certificate will be issued to you following the treasury operation. You can then tackle further procedures such as the company's establishment en status, frameworks, submission of agreements regarding the company's head office, etc. Costs apply as follows:

  • 5% for capitals between 1 and 200,000 dinars
  • 1% for capitals between 200,001 and 300,000 Algerian dinars
  • 0.7% for capitals between 300,001 and 400,000 Algerian dinars
  • 0.6% for capitals between 400,001 and 500,000 Algerian dinars
  • 0.5% for capitals exceeding 500,001 dinars.

Subsequently, the company's constitution has to be published in the National Trade Register's official bulletin and in a national newspaper. Fees of some 48 Algerian dinars are required per line for a total of twenty lines. You can then proceed with the setting up and registration of the company with the Commercial Register within two months. In general, the registration certificate is issued within two days.

Good to know:

According to the 10 July 2004 decree regarding the revision of fees by the National Trade Register under the conduct of business registers and legal advertisements, fees apply as follows according to the amount of capital:

  • 9,120 dinars for capital ranging between 30,001 and 100,000 dinars
  • 9,520 dinars for capital ranging between 100,001 and 300,000 Algerian dinars
  • 9,760 for capital exceeding 300,000 dinars.

Simultaneously, you will have to pay for tax stamps to the tax administration. The other stamps are to be paid at the National Trade Registration Center. These should cost some 4,000 dinars.

You are also required to register your company with the local tax office for personal income tax, gains or corporate tax as well as Valued Added Tax (VAT). An existence certificate will then be issued within two to five days and a magnetic card for the tax return within 30 days minimum.

The company must also be registered with the Caisse Nationale des Assurances Sociales et des Travailleurs Salariés (CNAS), that is the National Social Insurance Fund. Note that all new employees have to be registered within ten days following their recruitment. Note that this organization also provides for insurance for non-employees.

Finally, you are required to open a bank account for the company in a specific commercial bank according to the type of business. Documents to be produced are the following:

  • the company's establishment and status documents
  • the tax registration certificate
  • statistical information
  • copy of the director's birth certificate.

The entire procedure's duration should vary from one bank to another, taking into account whether a checkbook or other document has been requested.


You will also have to create a corporate seal for the company. The price depends on the quality and type of seal requested, varying generally between 1,500 and 3,500 dinars.

Last but not the least, the company's inventory and accounts' book have to be approved by Court before the company starts operating. Fees of some 2,000 dinars apply per book (that is a total of 8,000 dinars for four books).

Useful links:

National Trade Register Centre (NRC)
Ministry of Industry, Small and Medium Enterprises and Investment Promotion
National Agency of Investment Development
Doing Business ' Algeria

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.