North African country comparisons in 2022

Tax Resident Companies Algeria Egypt Tunisia Morocco Libya
Summary at a Glance
Total company engagement set up costs US$14,450 US$23,150 US$12,200 US$12,625 US$20,370
Subsequent annual costs (incl audit and tax) US$3,260 US$9,100 US$3,400 US$3,450 US$8,150
How long to set the company up? 3 months 1 month 1 month 6 weeks 3 months
How long to open company bank account? 4 weeks 4 weeks 3 weeks 4 weeks 3 weeks
Issued share capital required to hire expatriates US$60,000 US$50,000 US$50,000 US$55,000 US$80,000
Corporate bank account location Arab Bank Standard Chartered Bank Citibank Citibank National commercial bank
Tenancy agreement required before incorporation? Yes No Yes Yes Yes
Do you travel for company incorporation? No Yes No No No
Legal considerations
Resident shareholder required? Yes No Yes No Yes
Resident director required? No No No No No
Minimum number of directors 2 1 1 2 2
Minimum number of shareholders 2 2 2 2 2
Resident company secretary required? Yes Yes Yes Yes Yes
Individual shareholders allowed Yes Yes Yes Yes Yes
Corporate shareholders allowed Yes Yes Yes Yes Yes
Corporate director(s) allowed No Yes No No Yes
Public register of shareholders and directors Yes Yes Yes Yes Yes
Tax and accounting considerations
Corporate tax payable % 19-25% 22.5% 30% 30% 30%
Statutory audit required Yes Yes Yes Yes Yes
Annual tax return to be submitted Yes Yes Yes Yes Yes
Access to how many double tax treaties 20 51 67 37 10
Tax exempt free zones available Yes Yes Yes Yes Yes
Resident company for local tax purposes Yes Yes Yes Yes Yes
Withholding tax payable on international payments 15% 20% 1.5% 15% 0%
VAT rates 17% 10%-25% 18% 20% 10%
Import and export duties 5% 16.7% 6-18% 12.5% 10%
Monthly reporting No No No No No
How long to get work permit approved 2 months 3 months 2 months 2 months 2 months
Can the entity hire expatriate staff in the country? Yes Yes Yes Yes Yes
Logistics considerations
Allowed to sign sales contracts with local clients Yes Yes Yes Yes Yes
Allowed to invoice local clients Yes Yes Yes Yes Yes
Average monthly salary of skilled labour US$290 US$250 US$200 US$230 US$220
Average monthly salary of unskilled labour US$170 US$170 US$165 US$160 US$190
English spoken by what % of the population 7% 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 month US$8 US$7 US$8 US$7 US$5
Warehouse rental per square meter per month US$5 US$6 US$5 US$7 US$4
Country rating (out of 100) 35 20 40 55 40
Internet connectivity rating Fair Fair Fair Poor Fair
GDP per capita (US$) 5,400 3,200 4,300 3,000 9,500
Government liberal or controlling of daily business Moderate Strict Moderate Strict Moderate
Population % tertiary enrollment 32.1% 28% 25% 34% 29%
Global business efficiency index score (out of 100) 52 67 61 57 54
Ease of doing business global ranking (lower the better) 152 109 50 92 101
Population 38.48 million 80.72 million 10.78 million 32.52 million 6.155 million
Unemployment rate 10% 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 $62.36 billion
Average annual growth (2012) 3.7% 5.3% 4.8% 4.8% 6.4%
Estimate of engagement costs US$ US$ US$ US$ US$
Company formation fees 7,250 9,750 6,700 5,300 10,370
Company secretary and legal registered office fees N/A 2,400 1,100 1,100 0
Government fees 1,300 600 500 325 6,100
Corporate bank account opening 2,950 4,950 2,950 4,950 2,950
Healy Consultants project management fees 0 3,950 0 0 0
Estimate of total outgoings in Year 1 14,450 23,150 12,200 12,625 20,370
Draft sales invoice attached View invoice PDF View invoice PDF View invoice PDF View invoice PDF View invoice PDF

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client relationship officer - Simon