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Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Algeria

There are two types of companies that can be registered in Algeria, either a local or foreign company. One can locally incorporate either a limited liability company (LLC) or a public limited company (PLC). One shareholder and the director is required to start a limited liability company (LLC) in Algeria. As Algerian Company Law disallows foreigners from holding a majority share (>49%) in Algerian Companies, prospective businessmen will need a national to serve as their local joint venture partner for Algeria business setup. Quick note, LLCs with an annual turnover of more than US$120,000 is required to appoint at least one auditor. Failure to comply will result in a fine.

Three directors and seven shareholders will be required to incorporate an Algerian PLC. Another requirement is at least one of the shareholders must be of Algerian nationality and locals must hold 51% of the company’s share capital. Take note, it isn’t mandatory for a PLC to list on the stock exchange.

 

Know More About Investing in Algeria

The company must appoint an auditor from a list of approved experts to act as a statutory auditor for three years. The Algerian Government has forbidden the incorporation of branches of a foreign company. However, they could still run a 100% foreign-owned representative offices(RO), which may only engage in market research and promoting the business of the parent company. The incorporation of a representative office will require accreditation from the authorities every two years, a US$20,000 deposit and a convertible Algerian Dinars corporate account with a minimum deposit corresponding to 3 months of operating costs.

The time frame needed for incorporation is 12 to 16 weeks. The time taken to open a corporate bank account would be 4 to 5 weeks. It’ll cost approximately US$12,450 to set up. A minimum capital of US$1,000 is required. A few key points to take note of is the corporate tax rate is 26%. Under Algerian law, foreigners cannot own 100% of the company.

 

Why Register Company in Algeria?

Algeria is a resourceful country thanks to several active and developing sectors. There are several reasons to start a business in Algeria. One would definitely be the low overhead cost. Business owners can expect low-cost gas, fuel and electricity. Besides that, labour costs are also really low, the minimum wage is 18,000 Algerian Dinars. There are a few markets that are worth investing in.

 

Oil and Gas, Hydrocarbons

Algeria is one of the world’s top ten producers of both oil and natural gas. New investment is expected because of the inadequacy of the existing infrastructure. A contributing factor is the construction of the new undersea gas pipelines to Europe, thus resulting in investment in offshore exploration. The world’s third-largest reserves of recoverable shale gas is found in Algeria. To encourage foreign investments in unconventional gas exploration and exploitation, a new hydrocarbon law was enacted in 2013. To meet the increasing growth in domestic consumption, Algeria plans to invest US$120 billion by 2030 in renewable energies.

 

Information and Communications Technology

Algerians are tech-savvy and interested in technology. Government ministries are interested in process modernization and digitization of record-keeping. Business Internet usage is estimated at over 40% whereas home internet penetration rates remain below 10%.

 

Healthcare

Despite the ban on the importation of pharmaceuticals that can be produced domestically, the healthcare sector continues to be a relatively attractive market. Demand for medical equipment and disposals is considerable and depends largely on imported goods. The population’s standard of living is improving, albeit slowly. There has been an increased incidence in reporting of hypertension, diabetes, respiratory and cardiovascular diseases, and allergies.

The process to register a company in Algeria is quite simple when broken down but it can also be quite tedious and complicated. Should you require any assistance or services, we provide these services to ensure a smooth integration into the economy in Algeria. Contact us now!