The registration of a foreign-owned company in Algeria is a complicated undertaking, because foreigners cannot own Algerian companies in their entirety and are obliged to find a local partner.
Foster Swiss advises and accompanies you throughout the process of incorporation of the company and can help its clients to comply with this requirement of participation of partners of Algerian nationality whenever there is foreign investment.
This participation of local partners ranges from 51% for all activities of production of goods and services or banking, 40% local participation for activities auxiliary to maritime transport and up to 30% local participation for foreign trade activities. This participation of Algerian partners may correspond to one or several investors.
No minimum future share capital
Foreigners wishing to set up a company in Algeria must open a capital account, which will be used to inject the paid-up capital prior to the incorporation of the company in Algeria. Foster Swiss can fulfill this requirement without the client having to relocate, as well as support with the leasing of physical office space.
Please note when considering Algeria as a country to incorporate a company, that foreign companies cannot register a branch office in Algeria. The Government only allows representative offices.
The Algerian government has prohibited foreign companies from incorporating branches. However, they can manage 100% foreign-owned representative offices, which can only conduct market research and promote the parent company's business.
A representative office will require accreditation to the authorities every two years, a deposit of US$20,000 in a frozen resident bank account and a corporate account convertible into Algerian dinars with a minimum deposit corresponding to 3 months of operating costs.
Registering a company in Algeria should become easier in the coming months as the Algerian government plans to eliminate the minimum capital requirement to form a local company.
For more information on this topic or any requirements related to our services, you can contact us directly at info@fosterswiss.com. Consult a financial advisor for more information.