Company Registration in Algeria

Eligibility Criteria for Business Setup in Algeria

The entrepreneurs seeking business setup in Algeria must comply with the following eligibility criteria, as discussed below:

• Foreign investors must have a valid passport with a minimum of 6 months of residual validity.
• Must not possess any active criminal convictions, bankruptcy proceedings, or black-listing.
• Foreign applicants must be at least 19 years of age, which is the legal age of majority.
• Must have at least 1 shareholder for an SARL and at least 7 shareholders for an SPA.
• Must appoint a local manager or general manager, who can be a foreign national.
• Must have a valid physical registered office address recognized for commercial registration purposes.
• Must maintain a minimum share capital of 100,000 Algerian Dinars.
• Foreign investors must obtain prior approval from sector regulators in the regulated industry.

Who Can Register a Company in Algeria?

The list of applicants eligible to register a company in Algeria is as follows:

• Foreign investors holding 100% foreign ownership.
• Local partners having 51% Algerian ownership and 49% foreign ownership.
• Sole traders and retail merchants.

Step-by-Step Process for Company Registration in Algeria

The entrepreneurs seeking company registration in Algeria must comply with the step-by-step process, as prescribed below:

1. Step: Apply for Name Reservation
   The first step requires entities to apply for a name reservation with the Centre National du Registre de Commerce, ensuring compliance with Algerian naming conventions.


2. Step: Draft Company Incorporation Documents
   The next step requires the entities to have the company incorporation documents drafted and notarised in Arabic or French by an Algerian notary in compliance with the Commercial Code.


3. Step: Open a Corporate Bank Account
   Next, the entities to open a corporate bank account and deposit capital with Algerian Commercial banks such as Banque Nationale d'Algérie, CPA, or Société Générale d'Algérie.


4. Step: Publish in BOAL & National Newspaper
   In the next step, the entity is required to publish an announcement in the Bulletin Officiel des Annonces Légales (BOAL) in at least one nationally circulated Algerian newspaper.


5. Step: Register with CNRC
   In the next step, the entities are required to file an application and register with the Centre National du Registre du Commerce (CNRC).


6. Step: Obtain Commercial Registration
   Upon successful submission of the application, the entities obtain the Registre de Commerce (Commercial register/RC Number), which serves as the company's legal birth certificate.

Types of Business Setup in Algeria

The most common types of business setup in Algeria are as discussed below:

• Sole Proprietorship (EI): A sole proprietorship, commonly known as Enterprise Individuelle (EI), is a business structure mostly chosen by merchant retailers having sole liability for the company's debts and liabilities.
• Single-Member LLC (EURL): A single-member LLC, also known as an Entreprise Unipersonnelle à Responsabilité Limitée (EURL), is a form of business structure or sole proprietor company that grants legal personality to operate in Algeria.
• Limited Liability Company (SARL): A limited liability company, commonly known as Société à Responsabilité Limitee (SARL), is formed by 2 or more partners, each with a separate legal personality and liability limited to the amount of their contribution to the company.
• General Partnership (SNC): A general partnership, commonly known as Société en Nom Collectif (SNC), is a form of business structure that imposes unlimited joint and several liability on the partners, unless otherwise provided in the statutes.
• Simple Limited Partnership (SCS): A simple limited partnership, commonly known as Société en Commandite Simple (SCS), is a hybrid partnership having both general and limited partners with unlimited joint and several liability up to the amount of their contributions.
• Partnership Limited by Shares (SCPA): A partnership limited by shares is a hybrid partnership model that includes elements of a limited partnership liable for the company's debts, in compliance with the Algerian Commercial Law.
• Joint Stock Company (SPA): A joint stock company, commonly known as Société Par Actions (SPA), is the ultimate form of a large company that requires a minimum of 7 members and a share capital of 5 million dinars.
• Grouping (GIE): Grouping, commonly known as Groupement d'Intérêt Economique (GIE), is a form of business structure constituted without capital & profit-sharing to develop an economic interest for a fixed period of time.
• Representative Office: A representative office, commonly known as a liaison office, is a form of business setup now allowed to conduct any business operations except for the management of interests and subsidiaries.