Operating a Business

flag Algeria Algeria: Operating a Business

In this page: Legal Forms of Companies | The Active Population in Figures | Working Conditions | The Cost of Labour | Management of Human Resources

 

Legal Forms of Companies

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.
General Professional Associations
Company Directors Forum
 

Business Setup Procedures

Setting Up a Company Algeria Middle East & North Africa
Procedures (number) 12.00 6.28
Time (days) 18.00 19.51

Source: Doing Business - Latest available data.

 
For Further Information
Consult Doing Business Website, to know about procedures to start a Business in Algeria.
The Competent Organisation
National Center of the Register of Commerce
 

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

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The Active Population in Figures

201820192020
Labour Force 12,589,36412,716,54812,231,916

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 46.39%46.41%46.37%
Men activity rate 73.12%73.40%73.59%
Women activity rate 19.19%18.95%18.70%

Source: International Labour Organization, ILOSTAT database

 
Employed Persons, by Occupation (% of Total Labour Force) 2014
Transportation and storage 35.3%
Electricity, gas, steam and air conditioning supply 17.8%
Water supply; sewerage, waste management and remediation activities 14.8%
Manufacturing 11.3%
Agriculture, forestry and fishing 8.8%
Construction 6.3%
Wholesale and retail trade; repair of motor vehicles and motorcycles 4.4%
Mining and quarrying 1.3%
 
For Further Statistics
International Labor Organization
For Further Information About the Labour Market
International Labor Orgaisation, Information on the Algerian labor market

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Working Conditions

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 .

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The Cost of Labour

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 DZD 41,900 in 2020 (around USD 320) according to the National Office of Statistics.
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

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Management of Human Resources

 

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
Algérie Emploi
 

The Contract

Type of Contract
Work contracts are governed by law. Collective agreements and individual negotiation supplement it.

Breach of Contracts

  • Retirement
There are several ways of retiring: early retirement, automatic retirement and official retirement.
  • Dismissals
The employer initiates dismissals:
- redundancy (people speak of cutbacks, "compression", in Algeria) is either individual or mass redundancy
- dismissal for professional misconduct
For further information, click here.
  • Other Possible Methods
Resignation; this is initiated by the employee.
Labour Laws
All the elements of Algerian social law on the ILO website
All the elements of Algerian social law on the LexAlgeria website.
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.
 

Dispute Settlement

 

Conciliation Process

  • Procedure
The Labor Code
 

Judicial Structures

  • Legal Framework
The Labor Code
  • Competent Legal Body
Social Affairs Tribunals and Labor Inspectorates
 

Social Partners

Social Dialogue and Involvement of Social Partners
In Algeria there is one predominant union: the UGTA, General Union of Algerian Workers
Unions
General Union of Algerian Workers
Regulation Bodies
Ministry of Labor and National Solidarity
 
 

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Latest Update: May 2022