If you are thinking of entering the field of international trade in the African continent, Algeria is among them. It is officially known as the People’s Democratic Republic of Algeria. Located in North Africa and on the coast of the Mediterranean. Algeria is a country with a large population, mainly dominated by the coastal areas, only about one-fifth of the country’s population, the rest of which are parts of the Sahara Desert. It is the tenth largest country in the world and the largest country in Africa. In 2016 it was estimated that the country’s population is 40.4 million. The ease of doing business report by the World Bank ranked Algeria 156 out of 190 countries in 2017. The Algerian government is looking for private and public participation to strengthen the following sectors of economic affairs. Major Incentives as a foreign business owner, there is uncertainty about what the foreign country can offer.
Algeria is rich in oil and it is the third largest natural gas producer.
Algeria’s economy is very diverse, hence, sectors such as tourism, agriculture, renewable energy and aquaculture are emphasized with development policies and programs in the pipeline.
It is strategically close to European, African and Arab markets.
Algeria’s commercial incentives are highly relevant in terms of the extensive road network, railways, seaports and airports.
Its inter-city transportation network consists of a metro system and three trams. Also, Algeria has a large population of qualified, young and competitive labor force.
Studying in Algeria is compulsory and offers vocational training as well as professional training for interested youth.
Businesses that invest in the national economy will be exempted from tax for a certain period described in the relevant projects.
Algeria also allows the formation of domestic and foreign companies, but international companies are only allowed to have a representative office.
The Algerian government allows the incorporation of the following types of companies: Joint company; This is a partnership entity, it also requires at least two partners and does not require a minimum capital.
Economic stability with deep wells of black liquid gold, Algeria has enjoyed strong economic performance for years.
Algeria’s special sector development, with a hydrocarbon safety cushion, actively diversify its economic sectors.
Algeria plans to develop the following industries: metalworking, electrical appliances, mechanics and automobiles, drug production, aerospace, shipbuilding and repair, food processing, clothing, wood products and mining. Tourism and agriculture are other special sectors in the development pipeline.
Newer industries that attract the younger generation are renewable energy and technology development. In the case of Algeria, the country is ready to offer tax exemptions for up to ten years. Although this depends on the location and size of the project involved. If you want to set up a company in Algeria, you can get other benefits such as: reduction of social security fund contribution by attracting young job seekers, lifetime tax exemptions for projects. or export businesses 5years tax exemption for companies, profit tax, global income tax and turnover tax for certain industries mentioned above. In attracting investment for the development of its sectors, Algeria will help you financially in every way possible.
Domestic or foreign small and medium enterprises are welcome to inquire about investment funds and credit guarantee funds.
Studying in Algeria is compulsory. Therefore, this country has a high literacy rate. You can have the option of hiring young professionals as well as skilled labor.
Another bonus for hiring companies is that labor wages are competitive in Algeria
Business advantages Investors who want to set up a company in Algeria can take advantage of the following advantages: Algeria is the largest gas exporter in Africa.
The Algerian government is encouraging investment in the agricultural sector. Those who plan to register a company in Algeria should know that the state has a high GDP ($600 billion per 41 million people). It also ranks 36th among 137 countries in terms of global competitiveness index. Algeria is the largest mainland state, with an area of 2,381,740 square kilometers, almost entirely occupied by desert.
Before you can register a company in Algeria, you must sign a physical lease for an office. Documents must be translated into Arabic, French or Berber even though most people speak French. It is possible to register a company in Algeria without visiting in person and opening an account for a remote company. To set up an Algerian remote company, you need 14 days to sign the contracts.
At least 2 directors and 2 shareholders: To open a company in Algeria, you need at least $1000 of share capital. Foreigners are not entitled to full ownership of Algerian companies and are required to find a resident partner for 51% of the joint venture. Before you can register a company in Algeria, you must sign a physical lease for an office. Documents must be translated into Arabic, French or Berber even though most people speak French. After this step, you should choose a name for your company, be careful to be a little creative in choosing a name and choose a name that is not repetitive, is not the name of a real person, and that this name It should introduce the type of your business activity.
It is possible to register a company in Algeria without visiting in person and opening an account for a remote company. Our experts can help you open an account at an Algerian bank. To set up an Algerian remote company, you need 14 days to sign the contracts. In 4 months you will have a chance to do your business and make a profit.
For more information, you can contact the legal department of the Iran and Africa Business Club every day and get advice from our experienced lawyers. You can also fill out our legal advice request form, and through that our advisors will check all your conditions and contact you and tell you the necessary solutions.