Company Formation in Algeria | Business Registration | IMC
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Algeria

SET UP A BUSINESS IN ALGERIA

Algeria is the second biggest nation in Africa and the 10th nation on the globe. Algeria, with its people of more than 37000, hydrocarbon prosperity, growing infrastructure needs, and increasing customer product requirement, is gaining interest from companies all over the globe. U.S. companies continue to consider Algeria a growing and increasing market. Long-term economic difficulties include growing the economic system away from its dependency on hydrocarbon exports, improving the private industry, gaining international investment, and offering sufficient tasks for young Algerians. Algeria is a big player in the Africa region, not only because of its significant area but also because of its significant GDP.

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Company Formation in Algeria

  • The limited liability company is controlled by Article 564 and following Articles of the Commercial Code. It is established by two or more partners who shall be only liable for losses in proportion to their contributions. A limited liability company, located in the largest business city and is 100% domestically owned.
  • Like local firms, foreign companies have the possibility of opening permanent business establishments in the form of branches. Registration with the Trade Registry allows the branch to be considered like a resident Algerian entity, but does not endow it with a legal personality

Company Registration in Algeria – Licensing

  • Algeria applies a value-added tax (VAT) to all sales in the country. The VAT rates are 7% and 17%, based on the product
  • When the Corporate  object under consideration  does not correspond to  any activity code listed in the Economic Activity List, a request may be presented to the authorizes on the National Trade Registry so that an activity code  may be created

Accounting and Tax for Company Registered in Algeria

  • Profits earned by firms with legal status shall be subject to an annual tax on corporate profits (IBS)
  • Algeria applies a value-added tax (VAT) to all sales in the country. The VAT rates are 7 %  and 17 %, depending on the product
  • Corporation tax rate is 30%
  • Income tax rate is 0% upto 120,000 DZD, since 2011, a flat 25% rate has applied to professionals and small business whose turnover is between 5 and 10 million DZD.

Type Limited Liability Company/Branch office
Under Algeria law, foreigners can own 100%
Share Capital 100,000DZD
Managing director One
Shareholders Minimum Two
Memorandum and Articles of Association Yes
Can the entity hire expatriate staff in Algeria Yes
Statutory audit required Yes
How long to open Corporate Bank Account 1 week
Timeframe to Incorporation 4-6 weeks
Annual Return Must be filled
Annual Tax Must be filled
Access to Algeria double tax treaties Yes

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