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Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

There are several types of advantages for the setting up of a foreign company in Algeria. For further information, please check the Invest in Algeria Guide, which is provided by the Ministry of Algeria for the promotion of investments.


Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Private Limited Company 1 or several partners DZD 100,000 divided into shares (DZD 1,000 by shares) minimum totaly subscribed and released. Liability is limited to the amount contributed. DZD 10,000 for registration fees. Yes
Joint-stock Company Minimum 7 shareholders DA 1 million Liability is limited to the amount contributed. DZD 10,000 for registration fees. Yes
General partnership Minimum 2 partners. No minimum capital. Liability is joint and several, and indefinite. DZD 10,000 for registration fees. No
The partnership limited by shares Two types of partners: active partners and sleeping partners. No minimum capital. Active partners' liability is joint and several. Liability of sleeping is limited to the amount contributed. No

Registration and licensing procedures
First, registration with the Trade Register is compulsory prior to any commercial activity in Algeria. The operator has to contact the National Centre of the Trade Register (CNRC). The registration fees amount to DZD 4,000 (stamps) and DZD 3.950 (common law).

Foreign exchange control
Currency exchange control is rather flexible in Algeria.

Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in Algeria.  

Foreign Direct Investment inflows in Algeria

FDI inflows 2003 2004 2005 World rank (*)
FDI inflows (USD million) 634 882 1081 109/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.


Last modified in 2006 - ongoing update
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