Key takeaways
- The main types of companies in Algeria under the Commercial Code are the EURL (single-member LLC), the SARL (2 to 50 partners, capital freely set), the SPA (joint-stock company, at least 7 shareholders and DZD 1 million minimum capital, or DZD 5 million with a public offering), the SNC, the SCS and the SCPA.
- Since the 2020 Finance Law, the 51/49 rule (51% Algerian ownership) applies only to strategic sectors and to import-for-resale activities; other activities can be 100% foreign-owned under investment Law No. 22-18 of 24 July 2022.
- Companies pay corporate income tax (IBS) at 19% for production of goods, 23% for construction, public works, hydraulics and tourism, and 26% for other activities, while small businesses with turnover up to DZD 8 million can opt for the single flat tax (IFU) at 5% or 12% of turnover.
Last reviewed: October 2026
Algeria business structures: key figures
| Item | Figure |
|---|---|
| SARL partners | 2 to 50 (convert to SPA within one year above 50) |
| SARL / EURL minimum capital | Freely set by the partners |
| SPA minimum capital | DZD 1 million (DZD 5 million with public offering) |
| SPA minimum shareholders | 7 (except public shareholding companies) |
| Corporate income tax (IBS) | 19% / 23% / 26% depending on activity |
| IFU flat tax threshold | Turnover up to DZD 8 million (5% or 12%) |
| Dividend withholding on transfers abroad | 15% |
What are the types of companies in Algeria?
The Algerian Commercial Code provides for the following legal forms. The details below follow the company-creation guide of the Algerian Investment Promotion Agency (AAPI).
| Form | Members | Minimum capital | Liability |
|---|---|---|---|
| Individual trader (natural person) | 1 | None (no statutes) | Unlimited, personal assets exposed |
| EURL – single-member limited liability company | 1 person | Freely set | Limited to contribution |
| SARL – limited liability company | 2 to 50 | Freely set, divided into equal shares | Limited to contribution |
| SPA – joint-stock company | At least 7 | DZD 1 million; DZD 5 million with public offering | Limited to contribution |
| SNC – general partnership | At least 2 | None | Unlimited, joint and several; all partners are traders |
| SCS – limited partnership | General + limited partners | Not fixed | General partners unlimited; limited partners up to contribution |
| SCPA – partnership limited by shares | General partners + at least 3 limited partners | DZD 1 million; DZD 5 million with public offering | General partners unlimited; limited partners up to contribution |
| Groupement (economic interest grouping) | At least 2 legal persons | None | Joint and several, unless agreed otherwise (Art. 796 Commercial Code) |
Foreign companies can also operate through a joint venture or consortium, or through a branch or permanent establishment registered for tax in Algeria.
Which form fits which project?
- EURL: the default choice for a solo founder, consultant or freelancer who wants limited liability. The sole partner is often also the manager.
- SARL: the standard vehicle for SMEs and for partnerships between an Algerian and a foreign investor. Flexible, no minimum capital, managed by one or more managers.
- SPA: required for larger projects, regulated sectors such as banking or insurance, and any company seeking to raise capital publicly. Governed by a board of directors or a management board with a supervisory board.
- SNC / SCS: mostly family businesses, where partners accept unlimited liability.
- Individual trader or auto-entrepreneur: the lightest set-up for very small activities (see below).
How do you register a company in Algeria? Step by step
Since Executive Decree No. 23-169 of 24 April 2023, the National Trade Register Centre (CNRC) runs an online portal connected to the tax administration, the social security funds (CNAS, CASNOS) and the statistics office (ONS). Applications are validated within three days, and the confirmation includes the trade register extract, tax identification number (NIF), statistical number (NIS) and social security affiliation. The full sequence is:
- Reserve the company name at the CNRC (online or at an AAPI one-stop shop). The name certificate is valid for six months.
- Secure registered offices: a notarised lease or property deed in the company's name. Registration of the lease takes about two to three weeks.
- Draft the articles of association before a notary, with partners' identity documents, the lease, the statutory auditor's acceptance (for companies that require one) and proof of capital deposit. Non-resident investors deposit cash contributions in a foreign-currency account opened at an Algerian bank in the company's name.
- Publish the articles in French and Arabic in the Official Bulletin of Legal Announcements (BOAL): DZD 7,000.
- Register with the CNRC online or at the one-stop shop (stamp duty DZD 4,000 plus registration fee).
- Obtain the tax card, NIF and NIS, and register for VAT.
- Open a bank account with the trade register extract, tax card, statutes and BOAL notice.
- Affiliate with CASNOS (self-employed social security fund) within 10 days of creation, then register employees with CNAS.
A statutory auditor's fee of about DZD 46,800 per year is listed by AAPI for small companies, with notary fees on top.
Can foreigners own 100% of an Algerian company?
Yes, in most sectors. The 49/51 rule, introduced in 2009, was narrowed by the 2020 Finance Law. It now applies only to:
- strategic activities: mining (excluding non-mineral quarries), upstream energy and hydrocarbons, electricity and gas transport and distribution networks, military industries, railways, ports and airports, and pharmaceuticals (except innovative high-value products); Executive Decree No. 21-145 of 17 April 2021 requires a 51% resident national shareholding there;
- import of raw materials and goods for resale in their original state.
Other activities are open to full foreign ownership under Investment Law No. 22-18 of 24 July 2022, which guarantees equal treatment of national and foreign investors and the right to transfer invested capital and income abroad. To benefit from the transfer guarantee, foreign-origin financing must represent at least 25% of the total investment cost. Only companies producing goods or services can transfer dividends abroad, in proportion to the foreign shareholding, and dividends paid abroad bear a final 15% withholding tax. Trading (import-for-resale) companies face strong exchange-control restrictions on transferring dividends abroad; confirm the position with the domiciliation bank before investing.
How are Algerian companies and entrepreneurs taxed?
Companies (IBS) – under Article 150 of the Direct Taxes Code (2026 rates):
- 19% for production of goods;
- 23% for construction, public works, hydraulics, tourism and thermal activities (excluding travel agencies);
- 26% for all other activities, including services and trading;
- a reduced 10% rate on reinvested profits (Art. 142 bis);
- a minimum tax of DZD 10,000 even when the return shows no profit.
The tax on professional activity (TAP) was abolished by the 2024 Finance Law. The standard VAT rate is 19%, with a reduced 9% rate.
Individual entrepreneurs and professionals pay personal income tax (IRG) on a progressive scale: 0% up to DZD 240,000, then 23%, 27%, 30%, 33% and 35% above DZD 3,840,000 of annual income.
Single flat tax (IFU): businesses with annual turnover up to DZD 8 million can opt for the IFU, which replaces IRG/IBS and VAT: 5% of turnover for production and sale of goods, and 12% for other activities and non-commercial professions.
Auto-entrepreneur status: created by the 2022–2023 reforms for very small independent activities, registered with the National Agency for the Auto-Entrepreneur (ANAE) rather than the trade register, with a reduced flat tax on turnover. AAPI lists a 5% rate under Article 282 sexies of the Direct Taxes Code; the exact rate and the turnover ceiling should be checked before registering.
Example: two founders, one Algerian and one French, set up an IT services SARL in Algiers with DZD 500,000 capital. As a service company it pays IBS at 26%. If annual turnover stays under DZD 8 million, it may instead opt for the IFU at 12% of turnover. Dividends sent to the French partner bear the 15% withholding tax, subject to the Algeria–France tax treaty.
What should location-independent professionals know?
- Freelancing for foreign clients from Algeria still requires a registered status (EURL, individual trader or auto-entrepreneur) and tax registration with a NIF; there is no digital nomad regime.
- Currency controls are strict: foreign-currency income and transfers abroad follow Bank of Algeria rules, which affects anyone invoicing abroad.
- Residence matters first. Whether you are taxed on worldwide income depends on Algerian tax residence; see our practical guide to obtaining tax residency in Algeria.
- Permanent-establishment risk. A foreign company with staff or a dependent agent working in Algeria may have a taxable presence even without a subsidiary, and must obtain a NIF when it performs contracts there.
Frequently asked questions
What are the types of companies in Algeria?
Algerian law provides for the EURL (single-member LLC), SARL (2 to 50 partners), SPA (joint-stock company with at least 7 shareholders), SNC (general partnership), SCS (limited partnership), SCPA (partnership limited by shares) and economic interest groupings. Individuals can also trade as sole traders or auto-entrepreneurs. The SARL and EURL are the most common for SMEs and foreign-owned subsidiaries.
What is the minimum capital for a company in Algeria?
For an SARL or EURL, capital is freely set by the partners, so there is no legal minimum. An SPA or SCPA requires at least DZD 1 million, or DZD 5 million if it raises capital through a public offering. General partnerships (SNC) have no minimum capital because partners are personally liable.
How do I register a company in Algeria?
Reserve the name at the CNRC, sign a notarised lease for your offices, have a notary draft the articles and handle the capital deposit, publish them in the BOAL, register with the CNRC (online portal or AAPI one-stop shop), then obtain the tax card, NIF, NIS and CASNOS affiliation. The online portal validates applications within three days.
Can a foreigner open a company in Algeria?
Yes. Since 2020, foreign investors can own 100% of an Algerian company outside strategic sectors and import-for-resale activities, where 51% resident national ownership is still required. Non-residents deposit cash capital in a foreign-currency account at an Algerian bank, and investments are governed by Law No. 22-18 of 2022.
What are the taxes for a company in Algeria?
Corporate income tax (IBS) is 19% for production of goods, 23% for construction, public works, hydraulics and tourism, and 26% for other activities. Reinvested profits can be taxed at 10%. VAT is 19% (9% reduced). Small businesses with turnover up to DZD 8 million can choose the IFU at 5% or 12% of turnover.
Related guides
Sources
- AAPI – Company creation in Algeria (legal forms and steps)
- AAPI – Foreign investment in Algeria (Law 22-18, 49/51 rule)
- AAPI – Algerian tax system
- PwC Worldwide Tax Summaries – Algeria, corporate income tax
- PwC Worldwide Tax Summaries – Algeria, corporate other issues
This article is general information, not personalised legal or tax advice. Confirm sector rules and fees with a notary or adviser before incorporating.
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