North African country comparisons

North African country comparisons

Tax Resident CompaniesAlgeriaEgyptTunisiaMoroccoLibya
Summary at a Glance
Total company engagement set up costsUS$12,450US$20,600US$12,200US$10,675US$20,370
Subsequent annual costs (incl audit and tax)US$3,260US$9,100US$3,400US$3,450US$8,150
How long to set the company up?3 months1 month1 month6 weeks3 months
How long to open company bank account?4 weeks4 weeks3 weeks4 weeks3 weeks
Issued share capital required to hire expatriatesUS$60,000US$50,000US$50,000US$55,000US$80,000
Corporate bank account locationArab BankStandard Chartered BankCitibankCitibankNational commercial bank
Tenancy agreement required before incorporation?YesNoYesYesYes
Do you travel for company incorporation?NoYesNoNoNo
Legal considerations
Resident shareholder required?YesNoYesNoYes
Resident director required?NoNoNoNoNo
Minimum number of directors21122
Minimum number of shareholders22222
Resident company secretary required?YesYesYesYesYes
Individual shareholders allowedYesYesYesYesYes
Corporate shareholders allowedYesYesYesYesYes
Corporate director(s) allowedNoYesNoNoYes
Public register of shareholders and directorsYesYesYesYesYes
Tax and accounting considerations
Corporate tax payable %19-25%22.5%30%30%30%
Statutory audit requiredYesYesYesYesYes
Annual tax return to be submittedYesYesYesYesYes
Access to how many double tax treaties2051673710
Tax exempt free zones availableYesYesYesYesYes
Resident company for local tax purposesYesYesYesYesYes
Withholding tax payable on international payments15%20%1.5%15%0%
VAT rates17%10%-25%18%20%10%
Import and export duties5%16.7%6-18%12.5%10%
Monthly reportingNoNoNoNoNo
How long to get work permit approved2 months3 months2 months2 months2 months
Can the entity hire expatriate staff in the country?YesYesYesYesYes
Logistics considerations
Allowed to sign sales contracts with local clientsYesYesYesYesYes
Allowed to invoice local clientsYesYesYesYesYes
Average monthly salary of skilled labourUS$290US$250US$200US$230US$220
Average monthly salary of unskilled labourUS$170US$170US$165US$160US$190
English spoken by what % of the population7%35%10%14%15%
Literacy rate %72.6%72%74.3%56%89.2%
Computer literacy rate %40%56%49%51%53%
Office rental per square meter per monthUS$8US$7US$8US$7US$5
Warehouse rental per square meter per monthUS$5US$6US$5US$7US$4
Country rating (out of 100)3520405540
Internet connectivity ratingFairFairFairPoorFair
GDP per capita (US$)5,4003,2004,3003,0009,500
Government liberal or controlling of daily businessModerateStrictModerateStrictModerate
Population % tertiary enrollment32.1%28%25%34%29%
Global business efficiency index score (out of 100)5267615754
Ease of doing business global ranking (lower the better)1521095092101
Population38.48 million80.72 million10.78 million32.52 million6.155 million
Unemployment rate10%14%16.5%9.1%17%
Inflation rate (2013)3.5%10.15%5.8%1.9%3.4%
GDP 2012 US$ billion$208.0 billion$257.3 billion$45.66 billion$95.98 billion$62.36 billion
Average annual growth (2012)3.7%5.3%4.8%4.8%6.4%
Estimate of engagement costsUS$US$US$US$US$
Company formation fees7,2509,7506,7005,30010,370
Company secretary and legal registered office feesN/A2,4001,1001,1000
Government fees1,3006005003256,100
Corporate bank account opening2,9502,9502,9502,9502,950
Healy Consultants project management fees03,950000
Estimate of total outgoings in Year 112,45020,60012,20010,67520,370
Draft sales invoice attached

Contact us

For additional information on our African company incorporation services, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon