Algeria: Operating a Business

Limited liability company (SARL)

Number of partners: From 2 to 20 partners (1 shareholder and 1 director). The maximum holding by foreigners is now 100% except for trading companies (import for resale as is) and companies in the military, pharmaceutical, energy and mining, and transport industries, which remain subject to the 51/49% rule (51 Algerians and 49 foreigners).
Capital (max/min): DZD 100,000 divided in shares (1,000 DZD per share) minimum fully subscribed and paid up.
Shareholders and liability: Liability is limited to the amount of capital contributed.

Public limited company (SPA)

Number of partners: Minimum of 7 shareholders. The maximum holding by foreigners is now 100% except for trading companies (import for resale as is) and companies in the military, pharmaceutical, energy and mining, and transport industries, which remain subject to the 51/49% rule (51 Algerians and 49 foreigners).
Capital (max/min): DZD 1 million fully paid / DZD 5 million in the event of a public offering.
Shareholders and liability: Their liability is limited to the amount of capital contributed.

General partnership (SNC)

Number of partners: Minimum 2 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Their liability is joint and indefinite.

Limited Partnership

Number of partners: There are two sorts of partners, the active partners and the silent partners. There must be a minimum of one of each partner.
Capital (max/min): No minimum capital.
Shareholders and liability: The liability of the active partners is joint and indefinite. The liability of the limited partners is limited to the amount of capital contributed.

Limited partnership with shares

Number of partners: There are two types of partners. Those with the same obligations and rights as in a joint partnership and limited partners (at least 3) with the same status as shareholders of a Joint Stock Company.
Capital (max/min): DZD 1 million fully paid.
Shareholders and liability: The general partners have joint and indefinite liability. The liability of the limited partners is limited to the amount of capital contributed.

Business Setup Procedures

The Competent Organisation

National Center of the Register of Commerce

For Further Information

Consult Doing Business Website, to know about procedures to start a Business in Algeria.

Financial Information Directories

Dun & Bradstreet - Worldwide directory with financial information on businesses

Kompass - Algeria Business Directory

Recovery Procedures

Principle

In the framework of the safeguard scheme, two legal decisions are generally made:
- being put into receivership, a state where payment stops, it is impossible to face the liabilities due with the current assets.
- bankruptcy, a persistent state where payment stops and receivership is manifestly impossible.
Bankruptcies and receiverships are governed by the Code of Commerce.

Minimum Debt-to-Capital Ratio Triggering Liquidation

No minimum

Bankruptcy Laws

Book III - bankruptcies and receivership in the Code of Commerce

Opening Hours

 

• Legal Weekly Duration

40 hours

• Maximum Duration

12 hours a day over 5 days minimum

• Night Hours

Between 9pm and 5am

Working Rest Day

Friday

Paid Annual Vacation

2.5 days per month worked (to an annual maximum of 30 calendar days), +10 days per year for those who work in the south.

Retirement Age

60; may be reduced for 'strenuous professions'

Child Labour and Minimum Age For Employment

16

Informal Labour Market

The unofficial economy represents 35% of the PIB. See the OECD report on this issue .

Pay

Minimum Wage

The minimum wage ("salaire national minimum garanti" - SNMG) is DZD 20,000 per month (effective from June 1, 2020; official government source)

Average Wage

Average monthly gross earnings is around DZD 41,800 in 2019 according to the National Office of Statistics (latest data available). It is estimated at around DZD 41,000 (EUR 205) in 2020 (Dzair Daily).
The International Labour Organisation does not provide any data.

Other Forms of Pay

• Pay For Overtime

+50%

• Pay For Rest Days Worked

+100%

• Pay For Night Hours

+25% from 6pm to midnight.
+50% between midnight and 8am.

• Pay For Overtime at Night

+100%

Social Security Costs

The Areas Covered

Health insurance (medical care, maternity, disability, death), retirement pensions, family allowances, unemployment benefit. Algeria has entered into totalisation agreements with Belgium, France, Romania and Tunisia.

Contributions

Contributions Paid By the Employer: 26% of the gross salary is payed by the employer in monthly contribution (while the employee contributes 9%).
Contributions Paid By the Employee: 9% monthly withholding tax.

Competent Organization

National Social Insurance Fund

Recruitment

Method of Recruitment

In general, applications are made by post.  The method of recruitment in Algeria is by face to face interview.

Recruitment Agencies

The ANEM (National Employment Agency) is the official employment agency.

Recruitment Websites

Emploitic, recruitment website in Algeria

The Contract

Dispute Settlement

Social Partners

Employer Associations

CEIMI - Entrepreneurs & Industrialists of the Mitidja Club
CACI - Algerian Chamber of Commerce and Industry

Social Dialogue and Involvement of Social Partners

In Algeria there is one predominant union: the UGTA, General Union of Algerian Workers

Regulation Bodies

Ministry of Labor and National Solidarity