Entrepreneurs face hurdles if they wish to complete the process of foreign company registration in Algeria being foreign owners of Limited Liability Company or joint venture or branch office as follows:
Company Name: The entrepreneurs or investors must fill a form to obtain a selected company name sustaining uniqueness. The company must submit four “proposed” company names to Centre National du Registre du Commerce (CNRC) with a fiscal stamp. CNRC conducts all the activities of searching name and approving a name within the same day. The cost should be required as DA 576. Then entrepreneurs should deposit the startup capital and no charge will be required.
Notarization process of the company: In the notarization process of the company, the birth certificate of manager will be a necessary document. To obtain the birth certificate of manager from municipality, no extra will be needed and the total process will be required to complete within one day. A specimen of manager’s signature should be submitted and the contribution document of the company should be notarized. There are some different criteria to pay the fees for notarization such as if the capital amount of the company remains DZD 1 to DZD 200,000, the notarization charge will be required 5% where 1% of the capital will be charged when the capital amount will remain DZD 200,001 to DZD 300,000 DA. Moreover, if the company has DZD 300,000 to DZD 400,000 as capital amount, it has to pay 0.7% as charge. 0.6% will be charged if the capital amount if the company remains DZD 400,001 to DZD 500,000. Again, when the range of capital amount is 500,001 to 1000,000 DZD, the company should pay 0.5% of capital. If the capital amount of the company is DZD 1000,000 or above, also 0.5% will be charged from capital amount. To complete the total notarization process, 7 days will be required.
Registration time line
In the legal journal, the company has to publish their constitution and DZD 48 will be charged for per line by the Official Bulletin of Legal Announcements (BOAL). Company should be registered within 2 months after formation. The registration process is totally maintained and observed by Centre National du Registre de Commerce. 1 day or in some cases, maximum 2 days will be required to complete the whole registration process and the company will get a final registration certificate after completing the whole process properly.
Company registration fees
There are some different criteria to pay the registration fees in different segments such as if the company has DZD 30,000 to DZD 100,000 as capital, it should pay DZD 9120 as registration fee. Besides, DZD 9520 will be recommended to pay when the company’s capital amount is DZD 100,001 to DZD 300,000. Again, when the range of capital amount crosses over DZD 300,000, the registration fee will be charged as DZD 9760. The company must obtain a receipt from Tax Authority and Centre National du Registre de Commerce through paying for the stamp duty. DA 4000 will be needed to pay for the stamps which are sealed by Fiscal Administration.
Normally fiscal administration seals the fiscal stamp where others are done by CNRC. The company can obtain the receipt within 1 day through following all the required procedures. The company should also be registered for tax payments. Income tax, corporate tax, value added tax will be charged by Tax authority in Algeria. After registration, the company will get a certificate between 2 to 5 days and within 30 days, company will get a tax card. Corporate tax will be charged as 25%. Exempted tax will be inside of free zone.
Foreign share holders: Investors should appoint a shareholder and a director to run the business properly. If the foreigners don’t want to be an Algerian citizen, they will never be hold the major percentage of share. The percentage rate would be maximum 49% individually. So, it will be better to search an Algerian citizen as partner in the joint venture who will help to set the business in Algeria. Government follows article 564 to govern the limited liability company. Investors should appoint a statutory auditor and the number of business partner would never be more than 20 persons. Cash contribution process is available to share capital and it should be paid. To share capital by contributions of services will be illegal.
Proprietorship Limited Liability Company: There is another company formation process naming Sole Proprietorship Limited Liability Company (SPLLC) is available in Algeria. An individual can be the sole partner who has power according to Partner’s assembly and will never be permitted to delegate the power. The sole partner can make decision and approve the accounting decision after receiving the statutory auditor’s report.
Branch office registration/ open
To set up a branch office, different kinds of legal papers from the parent company will be needed and should be attested from Embassy. Completing time of registration process could be 1 and month and the investors will not get permission to run the company before getting approval from the authority.
Q: How long take time to register a LLC in Algeria?
Ans: It’s around two months or lesser than that.
Q: How much fees are charged to register company in Algeria?
Ans: If the capital of company between DZD 30,000 to DZD 100,000, fees will stand of DZD 9120.
Q: What is the percentage of joint venture company share holders?
Ans: Majority will be holding by local share holders and 49 percent can be hold by foreign partners.