F.A.Qs
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 Establishment of a company in Algeria

 

Who can invest in Algeria ?

Any corporate body or natural person, resident or non resident.

What are the company’s forms in Algeria?

Companies belonging to persons:

  • Individual company;
  • General partnership;
  • Limited partnership;
  • Joint venture.

Capital companies – minimum issued capital:

  • Joint stock company: 1 000 000 Dinars;
  • Limited liability company: 100 000 Dinars;
  • Sole ownership with limited liability: 100 000 Dinars;
  • Partnership limited by shares: 1 000 000 Dinars.

What are administrative and advertising procedures to establish a company?

a.  Setting up of a company

  • Drawing up of authenticated memorandum of association at a notary;
  • Publication of memorandum of association in the official bulletin of legal advertisements;
  • Registration in trade register within two months following the setting up of the company

The necessary documents for registration in the trade register :

  • Establishment at the trade register services or their representative at the concerned ANDI’s one stop shop , of the certificate of non registration of the company name in the trade register, of the company to be established,
  • Adding to the file the notarial commercial lease with the head office address,
  • The National Trade Register Centre’s registration form (which can be provided by the representative of the NTRC at ANDI’s one stop shop)
  • Two (02) copies of the statutes establishing the company,
  • A copy of the insertion of the statues in the Bulletin of Legal Announcements (BOAL) and in a national newspaper
  • A copy of a birth certificate and a criminal record for managers, administrators, members of the directory board or of the Supervisory Board,
  • The deed of ownership or the notarised lease of the local, in the name of the company,
  • The certificate of non-registration of company name in the trade register of the company to be established, previously obtained from NTRC (can be also provided by representative of NTCR at ANDI’s One Stop Shop)
  • Receipt confirming payment of stamp duty as provided by the law,
  • Received payment of registration fees in the trade register,
  • The approval or authorization issued by the competent authorities for carrying out regulated activities.

NB: the same documents are required for the establishment of branches and other secondary establishments, or in the case of a change of activity, whether are concerned individual companies or firms

For foreign people, all documents issued by authorities outside the country including civil status documents, must be translated into Arabic or French.

The registration of any secondary establishment created through the national territory is made by reference to the primary listing.

The period of validity of the trade register is unlimited, with the exception of the following activities the duration of which is two years, renewable:

  • Imports of raw materials, products and goods intended for resale, with the exception of import operations performed for own account in the activities of production, processing and / or realization.
  • Retail trade exercised by foreign traders, natural or legal person

b.  Declaration of Existence

It must be made at the Inspectorate of Taxes territorially competent, within thirty (30) days from the beginning of the activity.

c.  Foreign trader card (if need be)

It is issued by services in charge of regulations of the province territorially competent. The application to be formalised must be submitted with the following documents:

  • Copy of trade register of the corporate body  established abroad;
  • Copy of articles of association of the represented company, drawn up in authentic deed;
  • Certified copy of passport;
  • Five (5) regulatory identity photos.

How long trade register can be obtained?

24 houres

What are the basic principles of labour law?

  • Legal duration of work: 40 hours per week full- time, arranged according the employer’s needs;
  • Legal daily amplitude: 8 hours with one break hour including half hour which is considering as working time;
  • Legal volume of overtime: 20% of the legal duration of work;
  • Guaranteed minimum wage: 18 000 DZD per month;
  • Remuneration for overtime: 50% increase in the hourly wage with recovery of the worked day on a legal holiday;
  • Contract of employment: contract for indeterminate period – contract for determined period in certain defined cases, and various professional contracts of insertions
  • Contract of insertion of graduates "CID": for graduates of higher education and senior technicians from the vocational training national establishments.
  • Contract of professional integration "CIP": for young school leavers of Secondary Education, vocational training centers, or who have completed an apprenticeship.
  • Training - Insertion Contract "CFI": for Young people without training or qualification.
  • Minimum age required 18 years.

Is employment of foreigners authorised?

Yes, subject to permit or authorisation of work.

What are the procedures related to the employment of foreigners?

a. Procedure of obtaining work permit:

An application enclosed to the concerned person’s file is submitted by the employer to the National Agency of Employment – Department of labour.

The permit is generally given within two or three weeks.

b. Procedure for obtaining resident’s permit:

An application is submitted to the police station, territorially competent, with an administrative file.

What are the main taxes applied to companies in the framework of the common law?

  • Corporate income tax: mainly 19% for activities of goods production, activities of building and civil engineering works as well as tourism activities and 25% for activities of trade and services.
  • Tax on global income (IRG): 15% deduction at source for shareholders natural persons. For employees: the rate varies according to salary, from 0% to 40%.
  • Professional activity tax: general rate of 2% of the turnover;
  • Value added tax: 17%, a reduced rate of 7% is applied to goods, products and specific operations;
  • Land tax: applied on constructed and non constructed properties, for living, commercial or industrial use, according to calculation scale.

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