A2T

How To Start A Business in Algeria

      HOW TO START A BUSINESS IN ALGERIA

 


Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Algeria. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Businessproject, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2015.

 

No.

                             Procedure

Time to Complete

Associated Costs
 

1

Obtain an attestation of the uniqueness of the selected company name from the Centre National du Registre du Commerce (CNRC) and pick up registration forms
Agency: Centre National du Registre de Commerce

The applicant must fill out a form, listing the four proposed company names, and pay a fee for the name search and the fiscal stamp. The Commercial Registry (Centre National du Registre du Commerce, CNRC) conducts a name search and issues a name certificate on the same day.

Since February 2015, the uniqueness of the company name can be checked online thought the portal www.cnrc.org.dz. Although the search and the reservation can be done online, business founders typically conduct these tasks in-person at the CNRC.

1 day

DA 490

 

2

Deposit the start-up capital with the notary public
Agency: Bank

The entrepreneur deposits the capital in the public treasury and obtains a deposit certificate before drawing up the statues.

1 day

no charge

 

3

Obtain the birth certificate of the manager
Agency: Municipality

A copy of the business manager's birth certificate is required for several procedures (drafting the company constitution documents, obtaining the criminal records, filing for the company’s registration). It can be obtained at the Municipality.

1 day

no charge

 

4

Draw up and notarize the company's constitution documents, submit a specimen of managers’ signatures, and prepare and submit the lease for the registered office of the company
Agency: Notary Office

According to Executive Decree n° 08-243, notary fees are:
-5% if the company capital is between DZD 1 and DZD 200,000 ,
-1% if the company capital is between DZD 200,001 and DZD 300,000 DA,
-0.7% if the company capital is between DZD 300,001 and DZD 400,000
-0.6% if the company capital is between DZD 400,001 and DZD 500,000
-0.5% if the company capital is between DZD 500,001 and DZD 1,000,000
-0.5% if the company capital is DZD 1,000,000 and above

7 days

see comments

 

5

Publish the company constitution in the legal journal (BOAL)
Agency: Centre National du Registre de Commerce

The Official Bulletin of Legal Announcements (BOAL) charges DZD 48 per line.

1 day

DA 48 per line (assuming 20 lines)
 

6

File for company registration with the commercial registry within two months of the formation of the company
Agency: Centre National du Registre de Commerce

According to Law No. 04-08 (April 14, 2004), registration is completed within 1 day. However, in practice, it still takes 2 days to obtain the final registration certificate.

Registration fees (Arrêté du 10 juillet 2004 portant révision des tarifs applicables par le centre national du registre de commerce au titre de la tenue des registres de commerce et des publicités légales) are as follows:
- DZD 9,120 if the company capital is between DZD 30,001 and DZD 100,000
- DZD 9,520 if the company capital is between DZD 100,001 and DZD 300,000
- DZD 9,760 if the company capital is more than DZD 300,000

2 days

see comments

*

7

Pay for the stamp duty and obtain a receipt
Agency: Tax Authority and Centre National du Registre de Commerce

Fiscal stamps are sealed at the fiscal administration. Other stamps are paid at the CNRC.

1 day simultaneously with previous procedure

DA 4,000

 

8

Register for income tax (Impôt sur le revenu global des personnes physiques, IRG), corporate tax (Impôt sur les bénéfices des personnes morales ou des sociétés, IBS), and VAT with the local tax inspectorate
Agency: Tax Authority

Upon registration, the Tax Authority shall issue a certificate of existence between 2 and 5 days and a tax card (magnetic card) within a minimum period of 30 days (loi n° 05-16 du 31 décembre 2005 portant loi de finances pour 2006 (JO n° 85 du 31 décembre 2005)).

2 days

no charge

 

9

Register for the Caisse Nationale des Assurances Sociales des Travailleurs Salariés (CNAS)
Agency: Caisse Nationale des Assurances Sociales des Travailleurs Salariés

The following three departments handle social security matters:
1. The Caisse Nationale des Assurances Sociales des Travailleurs Salariés (CNAS) receives employee declarations.
2. The Caisse Nationale de Sécurité Sociale des Non Salariés (CASNOS) receives employer declarations.
3. The Caisse Nationale d’Assurance Chômage (CNAC) is the competent authority for unemployment matters.

The employer must report any new employee within 10 days of hiring.

1 day

no charge

 

10

Register for the Caisse Nationale de Sécurité Sociale des Non Salariés (CASNOS)
Agency: Caisse Nationale de Sécurité Sociale des Non Salariés (CASNOS)

Business founders can register for social security at the Caisse Nationale de Sécurité Sociale des Non Salariés (CASNOS).

1 day

no charge

 

11

Make a company seal
Agency: Private sector

The cost of obtaining a company seal depends on the type of seal, its quality and the price established by the private seal maker. The prices vary from DAR 1500 to DAR 3500.

2 days

DA 1,800

 

12

Have the company’s accounting books stamped at the court
Agency: Court

The accounting and inventory books must be stamped when the company starts its business activity. The fees amount to about DZD 2,000 per book (4 books in total).

1 day

DA 8,000