Business entities in Algeria in 2023

Healy Consultants will assist our Clients with incorporating the optimum corporate structure in Algeria. As outlined in the table below, 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 only 1 shareholder and 1 director, and requires a minimum share capital of US$1,000 (DZD100,000). However, 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, Healy Consultants will be pleased to provide our Clients with nominee shareholder services;
• All LLCs with an annual turnover of less than US$120,000 will not be required to get their annual statements audited. All other LLCs are required to appoint at least one auditor, or are subject to a fine of up to US$12, 250.

The Algerian public limited company (SPA)

• The Algerian PLC is required by 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 (DZD1 million) 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)

• While the Algerian government has forbidden foreign companies to incorporate branches, they can still run 100% foreign-owned representative offices, which can only engage in i) market research and ii) promoting the business of the parent company;
• A representative office will require i) accreditation from the authorities every two years ii) US$20,000 deposit on a frozen resident bank account and iii) a convertible Algerian Dinars corporate account with a minimum deposit corresponding to 3 months of operating costs.

Table of comparison between different Algeria business entities types