Header Ads

Starting a Business in Algeria: Guide

Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Algeria. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected from World Bank: Doing Business 
No.ProcedureTime to CompleteAssociated Costs
1Obtain an attestation on the uniqueness of selected company name from the Centre National du Registre du Commerce (CNRC); pick up registration forms1 dayDA 490
2Deposit the start-up capital with the notary public1 dayno charge
3Draw up and notarize the company constitution documents, submit specimen of managers’ signatures, and prepare and submit the lease for the registered office of the company7 dayssee comment
4Obtain the criminal record and birth certificate of manager2 daysDA 30
5Publish the company constitution on the legal journal (B.O.A.L.) and a nationally circulated newspaper3 daysDA 1960
6File for company registration with the commercial registry within two months of the formation of the company2 daysDA 9760
* 7Pay for the stamp duty and obtain a receipt1 day simultaneously with previous procedureDA 4000
8Register for income tax (Impôt sur le revenu global des personnes physiques, IRG), corporate tax (Impôt sur les bénéfices des personnes morales ou des sociétés, IBS), and VAT with the local tax inspectorate2 daysno charge
9Register for the Caisse Nationale des Assurances Sociales des Travailleurs Salariés (CNAS)1 dayno charge
10Open the company’s bank account with a commercial bank1 dayno charge
11Register for the Caisse Nationale de Sécurité Sociale des Non Salariés (CASNOS)1 dayno charge
12Register with the Unemployment Insurance Fund (CNAC)1 dayno charge
13Make a company seal2 daysDA 1800
14Have company’s accounting books stamped at the court1 dayDA 8000
* Takes place simultaneously with another procedure.
Powered by Blogger.