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Company creation

In Algeria, various legal forms are available for establishing a company, whether as a sole proprietor or with partners. This choice is critical as it determines the taxation mode, responsibilities, and obligations as per tax legislation.

Natural Person

This form is typically suited for small businesses. It involves a single individual and does not require formal statutes for creation. Registration in the Trade Register confers trader status, and the individual may be personally liable for company debts

Single Limited Liability Company (EURL)

An EURL consists of a single person, typically a natural person. The capital is determined freely by the sole partner and is distinct from personal assets. Registration grants legal personality to the company, and the manager is considered a trader.

Limited Liability Company (SARL)

An SARL is formed by a minimum of two partners and a maximum of fifty. If the partners exceed fifty, the company must convert to a joint-stock company within a year. Registration provides legal personality to the company, and managers are considered traders. The capital is freely determined by partners, divided into equal shares, with a minimum value per share. Partners are liable for company debts up to their contributions.

General Partnership (SNC)

A General Partnership, often a family business, requires a minimum of two partners with no set minimum share capital. Registration grants legal personality to the company and all partners the status of traders. Partners have unlimited joint and several liability for company debts, and management is typically by all partners unless stated otherwise in the statutes.

Joint Stock Company (SPA)

A Joint Stock Company is a capital entity, considered the ultimate form for large companies. It requires a minimum of seven partners (except for public shareholding companies) and a minimum share capital of five million dinars for public offerings and one million dinars otherwise. It can be administered by a board of directors or a supervisory board. Partners’ liability is limited to their contributions. Registration provides legal personality and trader status to the board members.

Simple Limited Partnership (SCS)

A hybrid partnership with general partners and limited partners, the SCS has a divided share capital and is managed by one or more managers. Registration grants legal personality to the company and trader status to general partners. General partners have unlimited joint and several liability, while limited partners are liable up to their contributions.

Partnership Limited by Shares (SCPA)

This hybrid partnership involves general and limited partners, with a minimum of three limited partners. The minimum share capital is five million dinars for public offerings and one million dinars otherwise. It can be managed by one or more managers. Registration confers legal personality and trader status to general partners, who are liable for company debts, while limited partners are shareholders and liable only to the extent of their contributions.

Grouping

A grouping is formed between two or more legal persons for a defined period, aiming to facilitate or develop economic activity, without profit-sharing. It can be constituted without capital and is administered by one or more individuals. Registration grants legal personality to the group, and members are jointly and severally liable for its debts unless otherwise agreed by third parties (Article 796 of the Code of Commerce).

Electronic portal dedicated to business creation

Following the promulgation of Executive Decree No. 23-169 of April 24, 2023, the electronic portal for company creation is managed by the National Center of the Trade Register (CNRC), in coordination with tax authorities, the National Social Security Fund for Non-Employees, the national social security fund for employees (CNAS), and the National Statistical Office (ONS).

Registration through this portal, after validation by the CNRC and confirmation, constitutes the sole registration with relevant administrations. The applicant is not required to provide paper documents after registering the application.

The CNRC identifies the applicant through the automated national register of civil status, using the national identification number, birth certificate number, or passport number for non-resident foreigners. The application for registration is signed electronically, and upon validation by the applicant, the confirmation procedures are initiated. All required documents are transmitted electronically by the applicant.

NOTE The services provided by the National Center of the Trade Register and relevant administrations must validate and confirm the registration application within three days.

After confirmation of registration, the applicant will receive an electronic notification of acceptance via the portal. This notification will include:

  • An extract from the trade register.
  • Identification numbers:
  1. Tax identification number.
  2. Statistical identification number.
  3. Affiliation to the National Social Security Fund (CASNOS) for Non-Employees or the National Social Security Fund for Employees (CNAS).
  • The common identifier.

Create Your Company

Availability of the company name

To register a name, the applicant can visit the One Stop Shop of the AAPI or reserve via the information portal of the National Center of the Trade Register (CNRC) under the section “Our subscribers.” The applicant must provide all necessary information for processing.

          If the applicant visits the AAPI’s One Stop Shop and the CNRC representative:

  • The certificate is issued on the same day upon completion of the following formalities:
  • The applicant fills out a form suggesting four names in order of preference.
  • The applicant pays the search fee to the National Bank of Algeria (BNA).
  • The CNRC representative verifies and issues a registration certificate for the chosen name, valid for six months.
  • If the name is not registered or extended within this period, it becomes available to other companies.

If the applicant chooses to register online via the CNRC portal, this service is available to all users who are registered on the portal, without any distinction.

Reservation of the name or commercial name
  • The applicant can proceed to reserve the name or commercial name via the information portal under the section “Our subscribers.”
  • The process is simple and interactive. The user fills out a form with the following information:
  • Type of tradesman (natural person, legal person)
  • Four (04) names or trade names ranked in order of preference
  • Tradesman’s address or registered headquarters
  • Wilaya of the headquarters
  • Manager’s name, surname, and personal address
  • Withdrawal antenna
  • The CNRC services conduct the research and communicate the response to the subscriber via the Internet.
  • If all proposals are unavailable, the subscriber must make another request.
  • Otherwise, the application is registered, and the system informs the subscriber of a due date for payment of the fee and withdrawal of the registration certificate of the name or commercial name.

          Required documents:     

  • A copy of the identity document.
  • A Form for natural person/legal person (optional).
  • The payment receipt of the search fee at the BNA (National Bank of Algeria).

          Registration fee amounts:

The CNRC platform provides comprehensive and transparent information on procedures and costs associated with legal name applications. It offers easy access to details about different company categories, required administrative procedures, and corresponding rates

Lease Agreement for the Company’s Headquarters or Deed of Ownership

After selecting the company’s headquarters, you must visit a notary and a judicial officer to draft and sign a lease agreement for the headquarters. This contract should be signed on behalf of the company, not an individual. Additionally, you’ll need to provide the following documents:

  • Partners’ birth certificates
  • Legalized photocopies of partners’ national identity cards
  • Company’s statutes
  • Once the agreement is signed by all parties, it needs to be registered with the administration, which typically takes about two to three weeks.

Drafting the company’s legal statutes is done at the notary’s office. You’ll need to provide the following documents to the notary’s office:

  • Partners’ birth certificates
  • Two legalized photocopies of partners’ national identity cards
  • Lease agreement of the company headquarters
  • Commitment from an auditor (cost: 46,800 Algerian dinars/year, with 50% payable at company creation and the remainder at the end of the year)
  • Proof of deposit of the company’s share capital (the notary handles this formality)
  • Additionally, the notary’s services must be compensated.

Creation or amendment of company statutes must be published in the Official Bulletin of Legal Announcements (BOAL). Here’s what you need to know about this step:

  • The depository will be notified of the announcement and can retrieve it from the Official Bulletin of Legal Announcements service or download it online from https://sidjilcom.cnrc.dz.
  • This procedure incurs a cost of 7000 DZD.
  • The file includes the company creation statutes in French and Arabic.

Registration in the CNRC (National Trade Register Center)

Every new company in Algeria must register with the National Center of Trade Register (CNRC), which serves as the central database for Algerian companies. Registration can be done in two ways:

  • One-stop shop: Visit the One-stop shop in person.
  • Electronic portal: Register online via the electronic portal at https://cnrcinfo.cnrc.dz/. Click on “access to formalities” and then “online registration”.

Registration of the Natural Person in the Trade Register

  • A signed application on forms provided by the National Trade Register Center.
  • Supporting documents to prove that the premise supports commercial activity (title ownership, lease agreement, concession of land, or any act of assignment issued by a public body).
  • Receipt justifying payment of stamp duty under current legislation (4,000 DA).
  • Receipt for payment of registration fee as determined by regulations.
  • Copy of resident card for foreign applicants.
  • Copy of authorization or provisional approval issued by competent authorities for regulated activities or professions.

Registration of the Legal Person in the Trade Register:

  • A signed application on forms provided by the National Trade Register Center.
  • Supporting documents to prove that the premise supports commercial activity (title ownership, lease agreement, concession of land, or any act of assignment issued by a public body).
  • One copy of the company creation status or a copy of the text of creation for industrial and commercial public institutions.
  • Copy of the notice of insertion of the company’s statutes in the BOAL.
  • Receipt justifying payment of stamp duty under current legislation (4,000 DA).
  • Receipt for payment of registration fee as determined by regulations.
  • Copy of authorization or provisional approval issued by competent authorities for regulated activities or professions.
Extracting the Fiscal Card

Upon registration with the CNRC, the company is assigned an identification number for all administrative procedures, including dealings with the Algerian tax authority. The newly created company must register for VAT to fulfill its tax obligations. The manager must submit:

  • A legalized copy of the Trade Register.
  • The company’s statutes.
  • A deed of ownership of the commercial premises or a notarized lease agreement (in the company’s name).
  • A form provided by the Tax Inspectorate, completed, signed, and stamped on behalf of the company.
Tax Identification Number (NIF)

The registration application for obtaining a Tax Identification Number (NIF) is obligatory for all natural and legal persons registered in the trade register. Foreign companies without a permanent professional installation in Algeria and involved in various contracts are also required to obtain an NIF. The application must be submitted to competent tax authorities when subscribing to the declaration of existence. The NIF can be requested online at https://nifenligne.mfdgi.gov.dz.

Statistical Identifier Number Extraction (NIS)

The penultimate step involves obtaining the statistical identifier number, used for recognition with Algerian administrations such as the Directorate of Tax Services and Social Funds. An application must be filed with the statistical services of the National Statistics Office regional annex, presenting:

  • A copy of the Tax Card.
  • A copy of the Trade Register.
  • A copy of the Identity Card.
  • A copy of the company’s statutes.
Opening a Bank Account

Every company must have a dedicated bank account. Required documents include the trade register, Tax Registration Card, the company’s statutes, and the opinion of the BOAL (Official Bulletin for Legal Announcements).

Declaration of Activity CASNOS (National Social Security Fund for Non-Employees)

Within 10 days of creating your business, you must file an affiliation file with CASNOS, the National Social Security Fund for Non-Employees, where your business is located. Once this is done, you can proceed with the formalities for affiliating your employees to the social security system. The procedure is handled at the CASNOS level and involves submitting:

  • A copy of the trade register.
  • A copy of the Creation Status.
  • A form provided by CASNOS, available at their headquarters or on their website www.casnos.com.dz.
  • The processing of the file takes around 4 days.
  • The contribution is calculated based on the total annual contribution base of the affiliated, with a rate set at an average of 15%.