Business structure in Algeria
Incorporating a foreign company
Representative office / Liaison Office: Its business only involves managing the interests of the company or its subsidiaries.
It is not allowed to perform business or transactions which entail earnings.
Incorporating an Algerian company
Foreign businesses or subsidiaries cannot be established in Algeria unless they have an Algerian partner, required to own 51% of the capital against 49% owned by the foreign party.
Limited Liability Companies – SARL
- Foreign and Algerian partners (natural persons or legal entities).
- Minimum declared capital: 1000 euros (490 euros from the foreign partner).
- It is important to understand the law and its application properly, having a good legal advisor.
Sociétés en Nom Collectif (SNC)
- No minimum capital is required.
Sociétés en Commandite Simple (SCS)
The company is run by one or several managers.
The foreign company rendering a service in Algeria will be subject to a 24% tax withholding of the income from each invoice.