Business setup in Algeria
Business entities
ECOVIS Audit Algeria will assist our Clients with incorporating the optimum corporate structure in Algeria.
The most common business entity for foreign investors is the Algerian LLC (locally known as a SARL). However, foreign entrepreneurs may also choose to setup a PLC or a representative office in Algeria.
The Algerian limited liability company (SARL)
The Algerian LLC can be incorporated with minimum 1 shareholder and 1 director, and requires a minimum share capital of US$1,000 (DZD100, 000). However, the Algerian Company Law disallows foreigners to hold a majority share (>49%) in Algerian companies, so our Clients will need a national to serve as their local joint venture partner for Algeria business setup. If needed, ECOVIS Audit Algeria will be pleased to find for our Clients a local partner.
The Algerian public limited company (SPA)
Algerian PLC is required by the Algerian Company Law to appoint at least 3 directors and 7 shareholders. At least one of the shareholders must be an Algerian national and locals must hold 51% of the company’s share capital. A deposit of US$10,000 (1 million DZD) is furthermore required as the minimum paid-up share capital for Algeria company setup;
In Algeria, it is not mandatory for a PLC to list on the stock exchange. The company must appoint an auditor out of a list of approved experts to act as a statutory auditor for three years.
The Algerian representative office (bureau de liaison)
The foreign companies can run 100% foreign-owned representative offices, which can only engage in
- market research and.
- promoting the business of the parent company;
A representative office will require
- accreditation from the authorities every two years
- US$20,000 deposit on a frozen resident bank account and
- a convertible Algerian Dinars corporate account with a minimum deposit corresponding to 3 months of operating costs
