Algeria is a great place for your company to expand and provide essential new products and services. However, the Algeria subsidiary setup process can take weeks or months of your time, causing delays. Plus, you need to learn all of Algeria’s subsidiary laws and follow them every step of the way.
G-P can help you succeed in other countries such as Algeria using our global entity infrastructure. You can use our existing entity to hire employees, streamline payroll, and provide compensation and benefits. As the EOR, you can expand confidently without worrying about labor laws, tax regulations, or matters of compliance.
How to set up an Algeria subsidiary
Before you start learning how to set up an Algeria subsidiary, you need to take a look at factors that could impact the incorporation process. For example, location in a certain city or region could have different Algeria subsidiary laws. We recommend working with a consultant or global compliance expert who can help you find a great location with laws friendly to international incorporation.
You also need to examine which entity is best for your needs. For example, a limited liability company (LLC) often means more freedom to operate than a branch company. Algeria will allow you to set up your subsidiary as one of several types of entities, including an LLC, public limited company, or representative office. Although most companies incorporate as an LLC, the entity you ultimately choose should meet your business goals.
Setting up your Algeria subsidiary as an LLC includes the following steps:
- Researching the availability and uniqueness of your company name through the Centre National du Commerce (CNRC) or the Commercial Registry
- Picking up all necessary registration forms
- Paying fees for the search of your company name
- Receiving a certificate that is issued on the same day
- Creating an in-country bank account
- Depositing start-up capital in the bank and receiving a deposit
- Setting up, notarizing, and submitting your company’s constitution documents
- Publishing your company’s constitution
- Filing your company registration with the CNRC within 2 months of forming the company
- And more
Algeria subsidiary laws
Algeria’s subsidiary laws depend on the entity. LLCs require at least 1 shareholder and 1 director, as well as minimum share capital of USD 1,000. Algerian Company Law does not allow citizens from other countries to hold a company’s majority share, so you’ll need a national to serve as your local joint venture partner.
Since LLCs have freedoms like a resident company, you’ll have several tax obligations to follow. For example, companies with an annual turnover of less than USD 120,000 do not have to get their financial statements audited. LLCs making more than USD 120,000 must appoint at least 1 auditor or pay a fine of USD 12,250.
Benefits of setting up an Algeria subsidiary
Once you finish your Algeria subsidiary setup process, you’ll be ready to start working in the country. If you choose an LLC as your entity, you can also feel confident that your parent company and subsidiary will stay protected. Your parent company won’t incur risk from the subsidiary, and your subsidiary can have its own working structure.
It can take months or even a year to incorporate and start receiving these benefits, but fortunately, G-P can cut that time down. We’ll use our entity infrastructure to help you start working in Algeria. Our goal is to help you expand without any extra stress, which means we’ll handle Algeria’s subsidiary laws as the Employer of Record.
Other important considerations
Your subsidiary will require a significant amount of time to get up and running. If your schedule is busy, try to delegate tasks to other company executives and employees. You should also reach out to your accounting department to see how much money you’ll need for the incorporation process, travel, and more.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 global employment platform to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.