Understand the Jurisdictions Setup Requirement Before Proceed Your Algeria Company Formation
Algeria, which is also known as the People’s Democratic Republic of Algeria, is found in North Africa. Ranks at number 10 in the world in terms of size and it is the largest in the entire African continent. The current population is over 40.4 million based on a 2016 record. If you are interested in doing business at Algeria, they are 156 out of 190 countries according to how easy the process is. Algeria is attracting more attention from around the world, and the USA still considers Algeria as a growing market with a lot of potentials. They are key players in Africa because of its significant area and GDP. You can find out more about Algeria company formation by scrolling down.
Algeria Company Formation
The Algerian Limited Liability Company (LLC)
- The LLC in Algeria can be formed by just having 1 shareholder, 1 director, and it requires a share capital of at least $1,000. However, foreigners are only allowed to own up to 49% of Algerian companies, based on the Algerian Company Law. Therefore, clients require a national service, which will serve as the local join venture for setting up a business in Algeria.
- If an LLC has a turnover of $120,000 annually, the company does not need to have its annual statements be audited. Other LLCs must have at least one auditor, otherwise, they will be fined $12,250.
- Foreign companies can open a permanent business establishment by opening branches. Upon registering with the Trade Registry, the branch can be counted as an Algerian entity, but it does not endow a legal personality.
How to Register
Generally, the procedures to set up a company in Algeria can take 1 month. First, you must acquire a registration certificate issued by the National Trade Registration centre. They will give your company name their approval based on uniqueness and authenticity. The form is available at the trade registration centre and it should be filled out and signed, with four company names. There is a fee of 490 dinars and a tax stamp.
After that, you must deposit the capital they require at a bank in Algeria witnessed by a public notary. Then, they will issue the deposit certificate to you after the treasury operation. Once this is done, you can start with the next procedures like the company establishment, frameworks, status, agreements submission, etc.
These are the costs you need to pay for Algeria company formation:
- 5% if your capital is between $1 and 200,000 dinars
- 1% if your capital is between 200,001 and 300,000 dinars
- 0.7% for capitals ranging between 300,001 and 400,000 dinars
- 0.6% for capitals that range between 400,001 and 500,000 dinars
- 0.5% for capitals more than 500,001 dinars
Your company constitution will then have to be published in a legal journal, and they charge 48 dinars which only takes a day. Within 2 months of forming your company, you must register it with the CNRC, and these are the fees:
- 9,120 dinars if the capital is 30,001 to 100,000 dinars
- 9,520 dinars if the capital is between 100,001 to 300,001 dinars
- 9,760 dinars if the capital is more than 300,001
Then, you need to pay for tax stamps, register at the local tax office for VAT and personal income tax. You will receive and existence certificate between 2 to 5 days and a magnetic card, which is to be used for your tax return within a minimum of 30 days.
The company must also be registered with the CNAS. Take note that new employees must be registered in not more than 10 days after they are hired. There is also insurance for non-employees.
Make sure to open a bank account specifically in a commercial bank based on the kind of business.
This is the information you need to know before forming a company in Algeria. 3E Accounting will help you get started and give all the information you need for your company registration. Algeria company formation becomes easier with our assistance.