Specificity of company formation in Algeria
Firstly, the birth certificate of the manager is a necessary document in this process of the Company set up. While there is no extra an individual will need to get a birth certificate of the manager from the municipality, it takes not less than a day to complete the entire process. The specimen of the manager’s signature will be the next thing to submit to allow notarization of Company’s contribution.
There are different ways where one can pay the fees for notarization. For example, the notarization charge of 5% will be required when the capital amount remains at DZD 1 to DZD 200,000, and 1% of the charge when the capital value remains between DZD 200,001 and DZD 300,000 DA.
Furthermore, the capital of DZD 300,001 to ZDZ 400,000 is subject to a charge of 0.7% that a company will have to pay. The Company should pay 0.6% of the amount when its capital stands at DZD 400,001 to DZD 500,000. In the same order, it must pay 0.5% of the capital when the range of the capital amount lies between DZD 500,001 and DZD 1000,000. Lastly, for any amount of the capital that is DZD 1000,000 and above, the Company will pay 0.5% of this capital. The entire process of notarization takes up to 7 days to complete.
The Company is first expected to publish its constitution in the legal journal. According to the Official Bulleting of Legal Announcements, the Company will pay 48 DZD per line as the charge for publication. The registration of the Organization should take place within a period, not exceeding two months after formation. Centre National du Registre de Commerce is responsible for total maintenance and observation during this process. The registration process will only require one day or utmost, two days though rarely to complete the entire process. Once this process has been completed properly, then the Company should pick the final registration certificate.
When the business ready to operate, investors should now appoint both the shareholder and managing director to take charge of the business properly. Foreigners can choose to be Algerian citizen; otherwise, they will not hold a higher percentage of the total share. An individual foreigner can only get a maximum rate of 49% of the share. Therefore, it would be wise to have Algerian citizen as a business partner to help set up the business in this country.
The Limited Liability Company will be governed by article 564 of the constitution. The Company should have business partners not exceeding 20 persons and investors should consider appointing a statutory auditor. Though there is a cash contribution process payable as share capital, it is illegal to share this capital by the contribution of services.
Company Formation in Algeria – Registration Fees
Registration fees are paid in different segments according to various criteria. In this regard, the Company is required to pay DZD 9120 as a registration fee if it has a total capital amounting between 30,000 and 100,000 DZD. Moreover, the capital of DZD 100,001 to DZD 300,000 translates to DZD 9520 as the registration fee to be paid by the Company. Lastly, if the firm has a capital amount exceeding DZD 300, 000, it is liable to DZD 9760 charged as the registration fee. After paying the stipulated fees in full and stamp duty, the Company will then need to obtain an official receipt from the Tax Authority. Again, the Company must pay DA 4000 for stamps that are sealed by the Fiscal Administration.
The sealing of the fiscal stamps are usually done by Fiscal Administration and can as well be done by CNRC in some cases. Once the Company has followed all the recommended procedures, they should expect to get the required receipt within a period of one day. Registration for tax payment is another crucial step that the Company must do. The Tax Authority of Algeria is responsible for the collection of corporate tax, income tax and value added tax.
Once the registration is completed according to the guidelines, the certificate of the Company will be ready in 2 to 5 days after the registration period. The Company should also pick their tax card within 30 days. While the exempted tax is included in the free zone, the corporate tax is typically charged as 25 per cent.
If company formation in Algeria does not meet your business goals then you consider opening a company in Mauritius.