Why Should Your Company Incorporate in Algeria?
You might be wondering why Algeria should attract investors at this point in their history. The truth is, even up to the 20th century, there has been political turmoil in Algeria which wreaked economic havoc. However, the country in recent years found the hydrocarbon industry contributing much by way of revenue in times of peace. Your company could be set up in a business-related somehow to the strong hydrocarbon reserves to capitalize on the current trends. You can also situate your company incorporate in Algeria in agriculture which is slowly expanding too.
Economic Markers to Influence Your Company in Algeria
Foreign currency reserves stood at $173 billion as of 2020, buoyed by the hydrocarbon industry’s performance. There is also a sizable hydrocarbon stabilization fund. You will notice that gas production and export directed by a large margin to European markets. Some estimate that the natural gas reserves are the 10th biggest in the world. The external debt of Algeria stands at only 2% of GDP which is acceptable.
How to Conduct a Set Up a Company in Algeria
As a foreign investor, you need to get familiar with the incorporation process for that country. There are three kinds of legal entities that foreign investors may want to set up in Algeria. These are the limited liability company, the public limited company, and the representative office. The Ministry of Trade has to approve all applications for company incorporate in Algeria first.
The Limited Liability Company in Algeria
The limited liability company (otherwise simply known as SARL) is the first kind of legal entity. You only need to have one shareholder and one director to set up this kind of company. The minimum paid-up share capital per company is $1000 USD only. The government bars foreign investors from owning a majority stake in a SARL. The government also bans Corporate Directors for a SARL business. You will need 12 weeks to set up your own SARL in Algeria. You can legally be the sole shareholder of this kind of company.
The Public Limited Company in Algeria
You will need 7 shareholders and three directors at minimum to open this kind of legal entity. At a minimum, one shareholder should be an Algerian national to make the company compliant with Company Law. You will need 12 weeks as well to set up this structure. You will need $10,000 USD as minimum paid-up share capital for this kind of legal entity.
The Representative Office as Alternative Company Incorporate in Algeria
This kind of legal entity can only function by conducting market research and marketing the expertise of the parent company. If you do open a representative office, take note that the government will assess this legal entity every two years. You must set aside 16 weeks just for doing this kind of company incorporate in Algeria. You should also have a minimum paid-up share capital of $20,000 USD. If you open a representative office, you cannot secure partial or full ownership of other Algerian companies.