Algeria: Operating a Business

Legal Forms of Companies

Types of Companies and Capital (Max/Min)	Number of Partners/Shareholders and Liability
Limited liability company(SARL) 100 000 DZD in shares (1 000 DZD per share) minimum fully subscribed and paid up.	1 or several partners Liability is limited to the amount of capital contributed. .
Joint-stock company (SPA) 1 million DA	minimum 7 shareholders Their liability is limited to the amount of capital contributed.
General partnership (SNC). no minimum capital.	minimum 2 partners. Their liability is joint and indefinite..
Limited joint-stock partnership no minimum capital.	There are two sorts of partners, the active partners and the silent partners. The liability of the active partners is joint and indefinite. The liability of the silent partners is limited to the amount of capital contributed.

Enterprises Federation: Company Directors Forum
Algerian Employers Confederation

Source: Doing Business.

For Further Information: Consult Doing Business Website, to know about procedures to start a Business in Algeria.
Trade Register
The Competent Organization: National Center of the Register of Commerce.

Principle: In the framework of the safeguard scheme, two legal decisions are generally made:
- being put into receivership, a state where payment stops, it is impossible to face the liabilities due with the current assets.
- bankruptcy, a persistent state where payment stops and receivership is manifestly impossible.
Bankruptcies and receiverships are governed by the Code of Commerce.
Minimum Debt-to-Capital Ratio Triggering Liquidation: No minimum
Bankruptcy Laws: Book III - bankruptcies and receivership in the Code of Commerce

	2010
Labor Force	9,877,000

Source: CIA - The world factbook

Source: UN - United Nations

Employed Persons, by Occupation (% of Total Labor Force)
Farmers	16.3%
Craftsmen	40.1%
Shopkeepers and similar	5.6%
Managers and higher intellectual professions	4.0%
Intermediate professions	9.5%
Employees	9.3%
Workmen	10.5%
Technicians and similar	4.7%

Working Rest Day: Friday
Paid Annual Vacation: 2.5 days per month worked, +10 days per year for those who work in the south.
Retirement Age: 55 for women and 60 for men.
Child Labor and Minimum Age For Employment: 16
Informal Labor Market: The unofficial economy represents 35% of the PIB. See the OECD report on this issue .

Minimum Wage: DZD 15.000 Dinars (135 EUR) per month.
Average Wage: Average monthly gross earnings is 25,000 Dinars (340 USD).
Other Forms of Pay
Pay For Overtime: +50%
Pay For Rest Days Worked: +100%
Pay For Night Hours: +25% from 6pm to midnight.
+50% between midnight and 8am.
Pay For Overtime at Night: +100%

The Areas Covered: Health insurance (medical care, maternity, disability, death), retirement pensions, family allowances, unemployment benefit.
Contributions: Contributions Paid By the Employer: 24.5 %
Contributions Paid By the Employee: 7.50%
Competent Organization: National Social Insurance Fund

Method of Recruitment: In general, applications are made by post.The method of recruitment in Algeria is by face to face interview.
Recruitment Agencies: The ANEM (National Employment Agency) is the official employment agency.
Recruitment Websites: Dz-recrute, leading recruitment website in Algeria
EmploiItic
Algérie Emploi

Type of Contract: Work contracts are governed by law. Collective agreements and individual negotiation supplement it.

Breach of Contracts
Retirement: There are several ways of retiring: early retirement, automatic retirement and official retirement.
Dismissals: The employer initiates dismissals:
- redundancy (people speak of cutbacks, "compression", in Algeria) is either individual or mass redundancy
- dismissal for professional misconduct
For further information, click here.
Other Possible Methods: Resignation; this is initiated by the employee.
Labor Laws: Labor Code
All the elements of Algerian social law on the ILO website
All the elements of Algerian social law on the LexAlgeria website.

Social Dialogue and Involvement of Social Partners: In Algeria there is one predominant union: the UGTA, General Union of Algerian Workers
Unions: General Union of Algerian Workers
Regulation Bodies: Ministry of Labor and National Solidarity

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