Algeria is an independent state, located in Northern Africa. It is the largest country in Africa and the 10 largest state in the world. Algeria borders on Tunisia, Morocco, Mali, Niger and Mauritania.

Algiers is the capital city of Algeria.

Business entities in Algeria in 2024

The most common business entity for foreign investors is the Algerian LLC (locally known as a SARL). However, foreign entrepreneurs may also choose to setup a PLC or a representative office in Algeria.

1-The Algerian limited liability company (SARL)

The Algerian LLC can be incorporated with only 1 shareholder and 1 director, and requires a minimum share capital of US$1,000 (DZD100,000).

However, Algerian Company Law disallows foreigners to hold a majority share (=49%) in Algerian companies, so you will need a national to serve as their local joint venture partner for Algeria business setup. 

All LLCs with an annual turnover of less than US$120,000 will not be required to get their annual statements audited. All other LLCs are required to appoint at least one auditor, or are subject to a fine of up to US$12, 250.

2-The Algerian public limited company (SPA)

The Algerian PLC is required by Algerian Company Law to appoint at least 3 directors and 7 shareholders. At least one of the shareholders must be an Algerian national and locals must hold 51% of the company's share capital. A deposit of USS10,000 (DZD1 million) is furthermore required as the minimum paid-up share capital for Algeria company setup;

In Algeria, it is not mandatory for a PLC to list on the stock exchange. The company must appoint an auditor out of a list of approved experts to act as a statutory auditor for three years.

3-The Algerian representative office (bureau de liaison)

While the Algerian government has forbidden foreign companies to incorporate branches, they can still run 100% foreign-owned representative offices, which can only engage in market research and promoting the business of the parent company;

A representative office will require accreditation from the authorities every two years US$20,000 deposit on a frozen resident bank account and a convertible Algerian Dinars corporate account with a minimum deposit corresponding to 3 months of operating costs.

Business Advantages

Investors, who want to set up a company in Algeria can take advantage from the following:

1-Algeria is the largest gas exporter in Africa. Therefore, opening a gas company in Algeria can be a good idea. Also, the country has rich deposits of ferrous and non-ferrous metals, manganese and phosphorite.

2-The largest shale gas deposits are expected to require investment in field development. Therefore, there is a need for innovative technologies for mining and skilled engineers.

3-The Algerian government is stimulating investment the agriculture sector.

Table of comparison between different Algeria Business Entities types

updated on: 29/01/2024