Algeria Country Profile business trade issues

Algeria

DOING BUSINESS

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 (*) 2005
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