If you’re someone who believes in a business idea, you might be wondering how to get started. Luckily, with the right mindset and approach, starting a business can be a rewarding and fulfilling experience. To start a business, you must follow all the needed procedures. Failure to do so may result in problems down the line. To answer this question, it may be helpful to break it down into sub-questions.
In Algeria, there are two types of businesses: regular and online. Do you want to become a regular entrepreneur or an auto-entrepreneur? In this article, we’ll answer both questions.
Regular business
Before starting a business in Algeria, note that the law restricts foreign investment. According to the law, individuals can only make foreign investments through a partnership. In the partnership, resident nationals must hold at least 51% of the shares. Thus, foreign investors must collaborate with one or more local partners. They do this to establish their business.
To set up a business in Algeria, you need to go through the following steps:
1. NAME:
PLACE: CNRC (Centre National du Registre du Commerce and every city has its own Chambre of commerce)
COST: 800 DZD
APPLICATION: Form for legal entity/individual + copy of identity document
PROCESSING TIME: 1 day
One of the initial steps in establishing your business is to select an appropriate name. To do this, submit a form to the Centre National du Registre de Commerce (CNRC). Include four proposed names ranked by preference. Upon approval, you will receive a name certificate.
Another option is to apply online through a notary at https://sidjilcom.cnrc.dz/.
Please note that the name remains valid for six months. You can renew it once, giving you a year to complete the remaining business setup stages.
2. PROPERTY DEED / LEASE / DOMICILIATION
PLACE: NOTARY
Notary fees: 8000 / 10000 DZD
FILE: Birth certificates and copies of lessor’s and lessee’s identity documents – Natural disaster insurance
PROCESSING TIME: 1 day
Once the company is appointed, the next step is to secure a registered address. You can achieve this by obtaining a lease or deed of ownership in the company’s name through a notary (In Algeria you can hire a private notary to work on your case). The notary will also formalize the proof of deposit of the company’s share capital.
It is worth noting that certain activities do not necessitate a rental contract for business setup. For further information, we recommend consulting the CNRC.
3. CREATION OF COMPANY STATUS
PLACE: NOTARY
COST: 17000 DZD
DOSSIER: Certificate of name – Undertaking from an auditor – Proof of deposit of the company’s share capital
PROCESSING TIME: not defined.
At this stage, we can establish the legal status of the company. It is important to note that the status of the Natural Person remains unaffected.
But, for other types of companies, like SARL(limited liability company), EURL(One-man limited liability company) etc., they are Legal Persons. You must establish their legal status at the notary’s office.
Additionally, you must pay an auditor’s fee of DZD 46,800 per year upon signing the lease.
Half of this amount (DZD 23,400) is due upon establishment of the company, with the rest due at the end of the year.
4. PUBLICATION IN THE BOAL (BULLETIN OFFICIEL DES ANNONCES LEGALES)
PLACE: CNRC
COST: 6,110 DZD
FILE: Company creation status (in French and Arabic)
PROCESSING TIME: 1 day
The company must publish any changes to its articles of association. They must publish them in the official bulletin. It is for legal notices. The CNRC’s BOAL department will tell the depositor about the announcement’s publication. They will also provide a copy. You can get it in person or download it from: https://sidjilcom.cnrc.dz.
It is important to note that this stage may coincide with the creation of the status at the notary’s office.
5. PAYMENT OF THE TAX STAMP
PLACE: TAXES
COST: DZD 4,000
FILE: Payment receipt
6. PAYMENT OF TRADE REGISTER FEES
PLACE: Bank BNA
COST: varies according to the company’s capital and the number of activities carried out.
FILE: Payment form.
7. REGISTRATION WITH CNRC
PLACE: CNRC
COST: –
FILE: Form provided by the CNRC – Lease/ownership deed – Tax stamp – Receipt for payment of Trade Register fees – Two copies of the company’s articles of association – Two copies of notices in the BOAL – Manager’s birth certificate – Criminal record.
To establish your business, it is important to register with the CNRC.
After you finish stages 3 and 4, which involve paying the tax stamp and trade register fees, you can get your trade register (RC). It is worth noting that the cost of this stage may vary depending on the company’s capital and the number of activities carried out.
8. Extraction of the NIS (Statistical Identification Number)
PLACE: ONS
COST: –
FILE: Copy of tax card – Copy of RC- Copy of manager’s identity card- Copy of statute of creation, company stamp
PROCESSING TIME: 4 days
At this stage, we need the statistical ID number (NIS). It identifies the company to Algerian bodies and administrations. Social security funds and tax authorities use it. To get it, you need to visit the Office Nationale des Statistiques (or its regional branches). You must present the required documents.
9. DECLARATION OF ACTIVITY TO CASNOS
PLACE: CASNOS
COST: – –
FILE: Copy of RC – Copy of creation status – Form provided by CASNOS
PROCESSING TIME: 4 days
10. BANK ACCOUNT
PLACE: Bank of your choice
COST: Account opening fee
FILE: Trade register – Tax card – Company status – BOAL notice, company stamp, identity card
PROCESSING TIME: 4 days
The final stage in setting up your company is to create a dedicated bank account.
This requires several documents. They include your company registration, company stamp, identity card, tax card, company statutes, and a notice of publication in the Bulletin Officiel des Annonces Légales (BOAL).
Here are some useful websites you can visit to get more information.
- Agence Nale de Développement de l’investissement : http:// www.adni.dz
- Ministère des participations et de la promotion des investissements : www.mppi.dz
- Chambre algérienne du commerce et de l’Industrie (CACIwww.caci.com.dz
- Centre national du Registre du Commerce : www.cnrc.org.dz
- Droits des Affaires en Algérie : http : // lexinter.net/DZ/index.html
Online business
At the beginning of 2024, Yacine El-Mahdi Oualid, Minister of the Knowledge Economy, Start-ups and Micro-enterprises, launched the national auto-entrepreneur agency platform. It aims to promote entrepreneurship among young creators. In this context, it is planned to issue an auto-entrepreneur card to integrate as many entrepreneurs as possible into the regulatory economic fabric. Additionally, young entrepreneurs will benefit from a 4.5% reduction in tax duty.
The Minister for the Knowledge Economy, Start-ups and Micro-enterprises, Yacine El-Mahdi Oualid, has stated that the objective is to promote the national product and encourage self-employment among young people.
Becoming an auto-entrepreneur:
Registration was launched on 20 January 2024. To register, please follow these simple steps:
1) Visit the official website: https://www.anae.dz/fr/;
2) Create an account on the site.
3) Click on ‘get my card’.
Your card should look like this:
4) Fill in your details carefully.
Once you’ve registered on the site, you’ll receive a preliminary acceptance and you’ll be able to:
5)Declare to the social security body for non-salaried workers (CASNOS)
6)Declare your company’s existence to the local tax authorities to obtain a tax identification number within 30 days of obtaining your auto-entrepreneur card.
7)Declare your turnover every six months and submit your commercial and/or postal bank statements.
8)Declare the turnover and pay the relevant duties to the tax authorities.
For more information, please visit: http://www.majliselouma.dz/images/pdf/nossousse/Textes_oct22/loi_statu_auto_entrepreneur_fr.pdf
The list of areas of activity:
The list of activities eligible for auto-entrepreneur status includes all profit-making activities carried out by any individual, on an individual basis, according to the decree, which specifies that the liberal professions, regulated professions, and craft activities are excluded from the list of activities.
The list of activities is arranged into seven (7) areas of activity:
1- consultancy, expertise, and training: business network coordinator, organizational assistant, management consultant, etc.
2- digital services and related activities: web developer, full-stack developer, Python developer, etc.
3- home services: childcare, care assistant, etc.
4- personal services: machine maintenance agent, IT help desk supervisor, etc.
5- leisure and recreation services: Events sales assistant, Wedding planner, etc.
6- business services: industrial business manager, technical assistance engineer, etc.
7- cultural, communication, and audiovisual services: Adaptor-translator, Radio literary author, etc.
To be considered for inclusion in the national register, certain conditions must be met.
- The individual must be of legal working age and
- Algerian nationality, either residing in Algeria or a foreign resident by current legislation and regulations.
- Additionally, the individual must be engaged in an activity that is included in the list of activities eligible for auto-entrepreneur status. Please specify the activity.
Finally, thinking of opening a business is a brave move, and with the Algerian government facilitating the procedure, there’s no reason not to make your imagination a reality!
Written by Hadjer Terchi – freelance blogger | supply chain specialist