Algerian Legal Research

Vincent Ramette is a specialist in real estate collective investment (REIT) and financial law. He oversees financial regulatory compliance, risk management, and personal data protection in an investment management company in France. He was the director of the internet customer department for a major international publisher and worked as the director of knowledge management at a global law firm. He is a former independent expert in business and corporate law and worked as a senior expert in business performance and legal databases for the European Commission (Algiers, Eastern European countries, and Moscow). He wrote numerous articles on legal information and was involved in continuous education for lawyers. Vincent holds an MA in Business Law and a bachelor’s degree in education sciences. He is an expert in lean management.

NOTE: The content of this article is for general legal information purposes. It is not exhaustive and does not intend to dispense legal advice. Attention is drawn to the fact that some texts may not be published, and that official authorities or agencies should be consulted before undertaking any action.

1. Introduction

Algeria is a democratic and popular republic. The country, counting more than 45 million inhabitants as of January 1, 2022, covers an area of 2,381,741 km with 1,200 km of Mediterranean coastline. The country is a member of the Arab Maghreb Union (UMA) alongside Libya, Morocco, Mauritania, and Tunisia. Its borders are common with the latter as well as with two Sahel countries, Mali and Niger, and with Western Sahara.

Most of the Algerian population is distributed among some 121 urban centers, 68 semi-urban centers and 58 semi-urban centers. The main cities of the country are concentrated in the North and the Highlands: Algiers, Oran, Constantine, Annaba, Sétif, TIemcen, Skikda, Béjaïa, Tizi-Ouzou, Jijel, Tiaret, Batna, Biskra Mostaganem, Saida, M’sila, Chlef, Béchar, Ouargla, Ghardaïa, Adrar, El-Oued and Tamanrasset.

Arabic is the national and official language, spoken by most of the population while Tamazight (Berber language) is also a national and official language. The country’s Constitution has established Islam as the state religion and a large majority of the population is composed of Sunni Muslims.

The Algerian legal corpus can be divided into the traditional categories of public or private law, national or international law according to the legal nature of the legal entities concerned (public entities or individuals for example, states or international companies). Given the importance of public bodies and policy in Algeria, laws and regulations are first-class means to move, shift forward, or guide the Algerian society according the social, economic, religious, ethical, cultural, fiscal, or diplomatic goals the country assigns to itself.

Consequently, the number of texts and articles is continuously increasing with a growing impact on the overall level of activity and development pace. A selection of legal subjects has been made for the purpose of this study to allow the reader to get an up-to-date view of major issues in the legal field. Since legislative activity may introduce reforms all along the year, it is highly recommended to visit the sitography at the very end of this article. The reader should also be informed that if most of the applicable texts are published in official journals or bulletins, not all of them are available. Thus, it is highly recommended to consult official institutions or agencies, private experts, or lawyers in any decision-making process.

Understanding Algerian legislation often means learning basics of French law: it has been playing a major role in the building of Algerian legislation not only because from a historical point of view it has been applicable years after the French left Algeria in 1962, but also because it has been a source of inspiration for lawmakers since independence. There is no disputing however that an independent and autonomous set of texts is getting more and more important while, in addition to official publications, many law books are published in Arabic.

Concerning Algerian business law, this area of legal regulation is largely inspired by civil law while economic legislation enforces freedom of trade. Nevertheless, the open framework is tempered and balanced by the regulating power of the State, national and local public institutions, and representatives. Hence freedom of trade does not go without rules for the organization and establishment of commercial companies, and free competition or freedom of movement of goods do not go without the supervision of capital transfers or abuse of a dominant position. Algeria has adhered to various international conventions such as the Berne Convention for the Protection of Literary and Artistic Property, the Paris Convention for the Protection of Industrial Property, among others.

2. The Constitution and Public Institutions

Published in the Official Journal of December 30, 2020, a revision of the Constitution has included modifications of the following: fundamental rights and public freedoms, the separation and balance of powers, and independence of the judiciary power. More specifically the revised Constitution has limited the parliamentary mandate to two terms to prevent the country’s leader from remaining in power for more than four years. In its preamble, it also expressly mentions Hirak, the popular movement of 2019, and organizes the possibility to give more governing power to the Prime Minister and Parliament.

Regarding fundamental rights and public freedoms, the new Constitution stipulates that public institutions and authorities must respect the constitutional provisions relating to foundations and public freedoms. Furthermore, within fundamental rights. Freedom of the press in all its forms and the prohibition of prior control of this freedom is also recognized.

2.1. General Constitutional Provisions

Founded in 1962 after the war against the French colonial power, the People’s Democratic Republic of Algeria succeeded the previous French administrative institutions. The new Algerian political regime (led by Ahmed Benbella) promulgated the first constitution in 1963. This constitution has been replaced the Constitution of 1976 and then the Constitution of 1989 (modified in 1996). The last modifications have been made by three laws on constitutional revisions: law n° 02-03, of April 10, 2002, n° 08-19 of November 15, 2008, and 16-01 of March 6, 2016. The preamble defines Algeria as an Arab country “land of Islam, part of the Greater Maghreb.”

In its first version in 1963, Algeria was declared a one-party state, with classical Arabic as its official language and Islam as the religion of the State. Algeria’s Constitution of 1976 emphasized the role of socialism in the society which aimed at building “a socialist democracy” and “fight against every form of exploitation of man.” In 1989, the new constitutional reform introduced a multiparty system (about 40 political parties participate in the democratic debate) and abandoned the reference to socialism.

The 1989 Constitution has been the subject of several revisions, which took place in 1996, 2008, 2016, and most recently in 2020. For reference, this constitutional revision was adopted by referendum on November 1, 2020, and was promulgated and published on November 30, 2020.

The Constitution establishes the multi-party system, guarantees the full exercise of individual and collective freedoms in all their forms and in all areas and, finally, establishes the separation of powers, executive, legislative and judicial. The Constitution defines Algeria as a People’s Democratic Republic (art. 1). Islam is the religion of the State (art. 2). Arabic is the national and official language (art. 3). Tamazight is a national language. Hence, while “feudalism, regionalism and nepotism” are prohibited from the institutions, together with people exploitation or dependence links, the Constitution stresses that institutions aim at achieving social justice, equality, and freedom for all. Social and ethical considerations are also pillars of the institutions. These are set to protect the national sovereignty and independence together with the social and cultural fulfillment and anti-corruption practices. These ambitions include men and women equality (art. 34, 35, 36) while the constitution also guarantees fundamental freedom and human and citizen rights (art. 38).

The country’s flag is composed of two equal vertical bands (from left to right): green (symbolizing heaven in Islamic tradition) and white (symbolizing purity and peace) with a red (symbolizing blood of the martyrs) five-pointed star (each represented one of the five Islam Pillars) and a red crescent (coming from its Arabian history and symbolizing the path to heaven).

The Constitution provides the basic concepts of public organization and institutions: legitimacy and sovereignty, people and citizens, State, assemblies, wilaya and commune, decentralization and collectivity, public and national properties. These keywords illustrate how this part of the constitution has been written: from general to the specific, from the political organization to transport or natural resource issues.

The State derives its legitimacy from the will of the people (Constitution, art. 12), in the sense that the actions of the State are legitimate because if committed in the people’s interest and based on the principle of freedom of choice of the representatives within the framework of the Constitution and the electoral law. Because of this legitimacy, the State exercises its sovereignty on the territory (terrestrial and air spaces, waters), and national sovereignty belongs exclusively to the people (Constitution, art. 12 and art. 13. Any abandonment or alienation of a part of this territory would affect the people’s interest and is proscribed as illegitimate.

Democratic organization and social justice are two pillars on which the State is based. The people participate to the management of public affairs indirectly, through the election of its representatives to the assembly which also stands as the elementary tool of decentralization (Constitution, art. 15), as the commune stands for the elementary (basic) collectivity (Constitution, art. 16).

The Constitution also refers to “public properties” which are different from “national properties” (private or public assets of the State, the wilaya or the commune). “Public properties” is the expression used to designate all the natural elements composing the territory, from a geological or a utilitarian perspective: “the underground, mines, quarries, natural resources of energy, mineral, natural and living resources either in maritime areas, water or forests” (Constitution, art. 18). It clearly appears as a complement to the provisions of article 13: “the sovereignty of the State is exercised on its terrestrial and air space and its waters.” As the Constitution gives a list, which may be modified, the terms are so extensive that the writers tried to give the most extensive definition of public properties. It also includes the following utilities: “rail, maritime and air transport, the mail and telecommunications” notwithstanding “other properties defined by the law.” The national collectivity owns the public properties.

2.2. Local and Regional Government

The commune is the basic element of the territorial organization of Algeria. The municipalities are grouped around administrative districts (daïras) and departments (wilayas). The commune is managed by a Communal People’s Assembly (APC), elected for five years. The president of the commune is elected by the Communal Popular Assembly.

The wilaya (equivalent administrative districts of the prefectures) has a Wilaya Popular Assembly (APW), also elected for five years. The wilaya is administered by a wali (prefect) appointed by the President of the Republic. Wilaya government is responsible for the distribution of public services, regulation of small and medium-sized industry, agriculture. Furthermore, 1,541 communes are grouped into 227 administrative districts called Daïras and are managed by Communal Popular Assemblies responsible for local administration, economy and finance, planning. Having no economic and little political autonomy, however, the communes administer central government programs rather than initiate independent projects. Each communal assembly has ten to eighty members, who are elected for five-year terms. The assembly elects a communal executive from its membership. The heads of daïras (equivalent administrative districts of sub-prefectures) are also appointed by the President of the Republic.

Executive decree n° 18-199 of August 2018 on public service delegation by territorial communities of non-sovereign state tasks for general interest purpose. The executive decree sets that a public delegation by territorial communities might be agreed either as a negotiated procedure or submitted through tender procedure.

In the case of a tender procedure, the procedure is nationwide and aims to obtain the best offer through competition between several operators by ensuring the equality of their treatment, objectivity of the selection criteria, transparency of operations and impartiality of the decisions taken. The public service delegation is awarded to the candidate who presents the best offer, i.e., the one which offers the best professional, technical, and financial guarantees.

The first step for the candidates is to submit the application file. The second step is the withdrawal of the specifications of the call for tenders. An applicant might be selected through negotiated procedure for specific public services (published by a joint regulatory decision from the ministry of Finance and the Ministry of Territorial Communities). In any case the delegating authority has the obligation to guarantee the continuity of the public service concerned.

The delegation of a public service can follow the rules of concessions, leasing (affermage), public utility (régie intéressée“, stewardship (gérance).

• In the case of a concession, the delegating authority entrusts the delegatee with either the execution of works or the acquisition of goods necessary for the establishment of the public service and its operation, or it only entrusts it with the operation of the public service.
• The delegatee operates the public service in his name and at his own risk, under the partial control of the delegating authority. The delegatee itself finances the creation, acquisitions, and operation of the public service, and collects user fees.
• In the case of a leasing, the delegating authority entrusts the management and maintenance of a public service to the delegatee, in return for an annual fee paid to it. The delegatee acts on his own behalf and at his own risk, under the partial control of the delegating authority. The delegatee is exposed to commercial risks relating to operating revenues, as well as industrial risks relating to operating costs and expenses linked to the management of the public service.
• The delegating authority itself finances the establishment of the public service. The delegatee is remunerated by collecting fees from users of the public service.
• In the case of a public utility the delegating authority entrusts the management or management and maintenance of the public service to the delegatee.

The delegatee may find himself exposed to commercial risks relating to operating revenues, as well as industrial risks relating to operating costs and expenses linked to the management of the public service. The delegatee operates the public service on behalf of the delegating authority, which itself finances the establishment of the public service and retains its direction and full control. The delegatee is remunerated directly by the delegating authority by means of a bonus fixed as a percentage of turnover, supplemented by a productivity bonus and possibly by a share of the profits.

Management is the form by which the delegating authority entrusts the management or management and maintenance of the public service to the delegatee, without risk for the delegatee. The delegatee operates the public service on behalf of the delegating authority which itself finances the public service and retains its direction and total control.

The delegatee is remunerated directly by the delegating authority through a bonus set as a percentage of turnover, supplemented by a productivity bonus. The prices paid by users are set in advance in the specifications by the delegating authority which retains the profits. In the event of a deficit, it reimburses the manager a lump sum remuneration. The delegatee collects the rates on behalf of the delegating authority concerned.

2.3. The Legislative Power

Following the constitutional revision of November 28, 1996, which established a bi-cameral Parliament, the National People’s Assembly (Chamber of Deputies) became the first chamber of the Algerian Parliament. There are 407 elected deputies, based on the programs of their respective political parties or on so-called “independent” lists.

The Council of the Nation is the second chamber of Parliament. It includes 174 members, two-thirds of which, or 116 members, are elected by indirect universal suffrage by the elected representatives of the municipal and wilaya assemblies. The remaining third (58 members) is designated by the President of the Republic, by virtue of a constitutional provision. The Council of the Nation votes on laws. It is seized of the texts already adopted by IAPN but does not have the power to amend them. In the event of disagreement with the APN, a joint committee is set up to prepare a revised text which is then submitted for approval by both chambers, without the possibility of amendment. The President of the Council of the Nation (Senate) is the second person in the State, as the custodian of the office of President of the Republic in the event of a vacancy in power. However, he cannot be a candidate for succession to the latter.

The parliament, which exercises the legislative power, is composed of two chambers: the People’s National Assembly and the Council of Nation, which members benefit from parliamentary immunity (Constitution, art.126). If an agreement cannot be found after parliamentary discussions and the meeting of a special commission composed of representatives of the two chambers, the text is withdrawn, except for the financial law, which will be promulgated by the President of the Republic in case of disagreement (Constitution, art. 138). If not promulgated by the President of the Republic within 30 days, a law does not enter into force.

The People’s National Assembly (407 members, 8% of which are women) is elected on a universal, direct and secret suffrage for a period of five years (Constitution, art. 119). The Council of Nation (174 members which can be considered as a Senate) is partly (two-thirds) elected on an indirect and secret balloting by the elected members of the communal assemblies and wilayas. The other part (one-third) is designated by the President of the Republic (Constitution, art. 101). The duration of the mandate is limited to six years, members are renewed every three years (Constitution, art. 102).

The Constitution does not provide the conditions for the candidates to the People’s National Assembly (the law provides it); it specifies the conditions to be candidate to the election to the Council of Nation: one third of its members are designated by the President of the Republic among national personalities chosen according to the level, quality, and renowned competences. Since no specific criteria or control is established, it is a specific competence of the President who is widely free to choose these members according to his idea of the personalities deserving to join the Council.

While each chamber of the parliament sets up permanent committees, it meets in two ordinary sessions per year, each lasting at least four months (Constitution, art. 117). The parliament is competent to legislate in limited but wide domains (Constitution, art. 140). The parliament is competent in the following areas: State budget, tax and duties, customs, monetary and banking regulations, insurance, labor law, natural resources (mines, hydrocarbons, forest, water, etc.), information, financial regulations, and privatizations (Constitution, art. 122).

N.B. Concerning family law and the hierarchy of norms, the Sharīʿah cannot be considered as governing family law or Algerian law. Article 222 of the Family Code refers to the Sharīʿah but only as a complementary source for subject not dealt with by the code. For example, the code contains dispositions on marriage in articles 4–46, on divorce in articles 47–80, and custody in articles 58–73. More precisely the Sharīʿah consists of two corpora: the Koran and Sunna. But at the top of the hierarchy lies the constitution, followed by the ratified international treaties, organic laws, ordinary laws, regulations. The law is the rule voted on by the parliament.

2.4. The Regulatory Power

The regime is presidential in nature. The President of the Republic is elected by direct universal suffrage and by secret ballot for a period of five years. He is eligible for reelection up to two consecutive or separate terms. If the legislative elections result in a presidential majority, the President of the Republic appoints a Prime Minister and charges him with proposing a government and developing an action plan for the implementation of the presidential program which he presents to the Council of Ministers. The Prime Minister submits the government’s action plan for approval by the National People’s Assembly. If the legislative elections result in a majority other than a presidential majority, the President of the Republic appoints the Head of Government from the parliamentary majority and charges him with forming his government and developing the program of the parliamentary majority.

As defined by the Constitution (art. 143), domains other than those attributed to the legislative power (or to the President: presidential decrees) are under the regulatory power of the prime minister (executive decrees). Regulatory acts are unilateral acts. The prime minister may delegate a power of signature to the Secretaries of State who are thus entitled to sign various regulatory acts such as ministerial orders while central administrations publish other acts such as circulars or instructions.

However, other regulatory acts may be adopted by local institutions such as the walis (equivalent of regional prefects) or the presidents of the municipal assemblies. Lastly, other public institutions or regulators may adopt regulations (e.g., the Currency and Credit Council) upon control by the Secretary of State in charge.

2.5. The Judicial System

The judicial power is constitutionally independent and guarantees the safeguard of fundamental rights. It is based on a duality of jurisdictions system, lawfulness, and equality (Constitution, art. 140). Art. 148 also refers to the free will of the judge. Supreme Courts are not only institutions deciding on issues of law but are also charged with regulating the jurisdictional activity. Because of the principle of separation of powers, a court decision could not be empowered at a general scope without infringing upon this rule. Finally, the concept of fair trial is present in the Algerian judicial system; the defendant is entitled to be informed of the indictment and no exhibits can be produced before the court unless parties have exchanged them earlier.

Justice decisions are pronounced in public hearings (Constitution, art. 144) by magistrates (Constitution, art. 146) and the right for defense is recognized and guaranteed in penal matters (Constitution, art. 151). The Supreme Court is the highest jurisdictional degree unifying the jurisprudences across the country. In the criminal field, a criminal court is competent for crimes, offenses, and legal infringements.

In judicial matters, tribunals compose the first level of jurisdiction. Tribunals hear cases in the first instance for issues lower than 200,000 DA. In labor law cases, tribunals also hear plaintiffs in the first instances in disciplinary measures, pay slip or labor certificate litigation; in these matters the territorial jurisdiction is determined by reference to the place of domicile of the defendant.

Since the reform of 1996, two specific judicial orders are ruled by two distinct bodies: the High Court for the activities of courts and tribunals and a Council of State for the administrative jurisdictions (appellate judge for administrative courts or Supreme Court judge in specific matters). A public prosecutor is represented in each jurisdictional order.

Three specialized courts and tribunals are also competent for specific matters. A Tribunal of Conflicts arbitrates conflict of competency between the two councils (Constitution, art. 152), the High Council of Magistracy is competent for magistrates concerning their professional activity (Constitution, art. 149) and the High Court of State, competent for the President of the Republic in case of high treason or the Head of Government for crimes and infringements (Constitution, art. 158). A Constitutional Council controls the conformity of organic laws and rules of procedure of the two chambers of the Parliament and controls the constitutionality of treaties, laws, and regulations (Constitution, art. 167, Regulation of June 28th, 2000).

Whenever the State, a wilaya, or a municipality is concerned, administrative jurisdictions are competent. The following courts compose the administrative jurisdictional bodies: the Court of Audit, the lower administrative courts, and the high administrative court (Conseil d’Etat or Council of State), organized as collegial courts with state commissioners whose role is to file submission before any decision can be made. The Council of State does not only act as the appellate body for the lower administrative courts; its role is also to settle conflicts of jurisdiction between courts and to give advice to the government.

The Constitution of February 1989 provides for a Constitutional Council, which was replaced by the constitutional revision of 2020 by the Constitutional Court, now composed of 12 members. The Constitutional Court is an independent institution responsible for ensuring respect for the Constitution. The Constitutional Court is the regulatory body for the functioning of institutions and the activity of public authorities.

2.6. Arbitration

Alternative dispute resolution has existed in Algeria since the 1975 Civil Code established the rules for transaction, defined as a contract between the parties, each of them committing in obligations to settle a dispute. Even if the provisions of the civil code on transactions constitute a general framework that can be used in a variety of legal areas, practitioners should pay attention to expressly limit the terms of transaction to matters which are not governed by public order rules or principles.

While a transaction is a contract between private persons, arbitration is an alternative jurisdictional way to settle dispute and is based on the contractual agreement (pre-existing or concluded after a litigation arose) of the parties to submit a dispute to an arbitral tribunal. The arbitration tribunal has the obligation to settle the case and decide.

Arbitration in Algeria refers both to internal commercial dispute and international arbitration. Algeria ratified the 1958 UNCITRAL convention of New York on February 7, 1989, which entered into force in May 8. But arbitration is prohibited to public bodies except in international trade or public procurement areas.

Selection of Texts:

• Law n°90-08 of April 7, 1990, on municipalities amended and supplemented.
• Law n° 90-25 of November 18, 1990, on land policy.
• Executive decree n°91- 306 of August 24, 1991, listing the municipalities led by each daïra chief.
• Executive Decree n°94-248 of August 10, 1994, on the organization of the central administration of the Ministry of Home Affairs, local governments and of the administrative reform.
• Law n° 05-13 of October 18, 2005, granting the Ordinance n° 05-03 of July 18, 2005, supplementing the Law n° 90-08 of April 7, 1990, on municipalities.
• Law n° 05-14 of October 18, 2005, granting the Ordinance n° 05-04 of July 18, 2005, supplementing the Law n° 90-09 of April 7, on1990 on wilaya.
• Law n° 08-09 of February 25, 2008, laying down the Civil and Administrative Code.
• Law n° 11-06 of March 22nd, 2011, granting the Ordinance n° 11-02 of February 23rd, 2011, supplementing the Ordinance n° 66-155 of June 8, 1966, laying down the Criminal Procedure Code
• Law n° 11-10 of June 22, 2011, on municipalities
• Organic law n° 11-12 of July 26, 2011, establishing the organization functioning and competences of the Supreme Court.
• Organic Law n°11-13 of July 26, 2011, amending and supplementing the Organic Law n° 98-01 of May 30, 1998, on competences, organization and functioning of Council of State- Conseil d’état.
• Law n° 11-14 of August 2, 2011, amending Ordinance n° 66-156 of June 8, 1966, laying down the Criminal Code.
• Organic law n°12-04 of January 12, 2012, on political parties.
• Law n°12-07 of 21 February 2012 on wilaya.
• Law n° 22-08 on the organization, composition, and the attributions of the High Authority of transparency, prevention, and fight against corruption.
• Code of civil and administrative procedure (esp. art. 1006 to 1061).

3. Civil Law

Concerning natural persons, the existence of a legal personality starts with the birth of the living child and ends with his death (Civil Code, art. 25). According to the Civil Code, a legal person (i.e., the State, the wilaya, the municipality, corporations, cooperatives, or any other grouping recognized as a legal person by the law), owns assets, legal capacity, has a legal domicile, a legal representative, and the right to justice (art. 50).

The Civil Code defines a contract as an agreement according to which on or more persons undertake to give, do or not to do something (art. 54). A contract is a meeting of consistent will and can be expressed either orally or in writing. The contract is formed as soon as the parties have expressed their concurrence of will (art. 59). If an agreement contains an offer but no acceptance deadline, the offer must be accepted immediately to bind the debtor (art. 61).

3.1. Contract Law

3.1.1. Classification of Contracts

A contract stands as the law between the parties and must be performed in good faith according to its provisions. But if general, unforeseeable, and exceptional circumstances occur, making the performance impossible or excessively expensive, the parties may request the judge to revise the contract (Civil Code, art. 107).

Under Article 54 of the Civil Code, a contract is an agreement by which one or more people bind themselves, towards one or more others, to do or not do something. The law of obligations, inspired by civil law principles, is governed by Book II of the Civil Code. The first classification of contracts divides them into consensual, solemn, and real contracts.

Consensual contracts are formed by the simple exchange of consents, without the need to resort to any formality: they are in principle the rule by virtue of the principles of autonomy of will and consensualism (art. 59).

Solemn contracts are only deemed valid if they have been authenticated by an authorized authority, generally the notary. Under the terms of article 324 bis 3 of the Civil Code: “Solemn acts are, under penalty of nullity, received by the public officer in the presence of two official witnesses.” Thus, for example, the contract for the formation of a company is a so-called solemn or formal act (art. 418).

Contracts can also be classified as contracts of adhesion and negotiated contracts. Acceptance of an adhesion contract results from the adhesion of one party to a regulatory project that the other establishes without allowing negotiation and implies the prohibition of leonine clauses. The negotiated contract is one whose stipulations are freely negotiated between the parties.

The Algerian Civil Code also distinguishes between unilateral contracts and synallagmatic contracts. The contract is unilateral when one or more people are obligated towards one or more others, without there being any commitment on the part of the latter (art. 56). A contract is said to be synallagmatic or bilateral when the contracting parties are reciprocally obligated towards each other (art. 55).

The classification resulting from article 58 identifies gratuitous contracts and onerous contracts. A contract (onerous contract) is considered commutative when each of the parties knows the extent of their commitment which is considered as the equivalent of what is being given or what is done. The contract is aleatory when the equivalent consists of the chance of gain or loss for each of the parties based on an uncertain event.

Algerian law also distinguishes between private law contracts and administrative law contracts. The first is based on the principle of strict equality between the parties and the fact that they are persons governed by private law. The second is concluded either between two public persons, or between a public person and a private person. The law that applies is administrative law, the related litigation is devolved to the administrative courts.

3.1.2. Formation of the Contract

Concerning the formation of the contract, this is, obviously, subject to formal and substantive conditions. The substantive conditions (consent, capacity to conclude, lawful object and cause) and the formal conditions (the requirement of writing for authentic acts or private acts) are also usual and known in Latin law. Writing constitutes the most indisputable means of proof: law n’05-10 of June 20, 2005 which modifies the Civil Code provides that writing in electronic form is admitted as proof in the same way as writing on paper, on the condition that the person from whom it emanates can be duly identified and that it is established and stored in conditions likely to guarantee its integrity (art. 323 ter). Under the Civil Code, proof of a legal act or of the extinction of an obligation by witnesses is valid (art. 333, paragraph 1) if the value of the contract does not exceed 100,000 DZD or is indeterminate.

3.1.3. Effects of the Contract

Contractual obligations are divided into three distinct categories: the obligation to give, to do, or to omit, the obligation of mean (or diligence) or result and simple or complex obligations (with several objects or purposes, several persons, including conditions or a term). These obligations should end by the payment, i.e., the execution of the contract. But there are other ways to terminate a contract: the end of the limitation period, the release of the debt, the transfer in lieu of payment, the novation of the contract or the optional set-off of the obligation.

A contract may be annulled in the case of a substantive error (Civil Code, Art. 81). A substantive error is defined as an error so serious that should the error have not occurred; the contractor would not have expressed his will to the agreement. A contract must have a subject, either certain, even in the future, or at least determined. A contract without a lawful subject or cause is void.

In the context of litigation procedures, the plaintiff is normally charged with the burden of proof, and documentary evidence (in the commercial area, facts may be proved by any means) is required for disputes dealing with more than 100,000 DA (about €710,000 or 870,000 USD according to the applicable exchange rate).

3.2. Contractual Liability

The implementation of liability is subject to the existence of a valid contract, the non-performance of an obligation provided for in the contract or assigned to the contract, damage, and a causal link. The law provides, for the creditor, the obligation to give formal notice prior to legal action. The formal notice constitutes a warning sent by the creditor to the debtor with the aim of forcing him to perform the contract. The formal notice carried out under the conditions provided for in Article 180 (summons or equivalent act, postal service, or agreement) only has reason to exist if execution of the contract is still possible. Regarding contractual fault, it lies in the non-performance of the obligation, as provided for by article 119 of the Civil Code. It can be total (failure to deliver the thing) or partial (late delivery).

As for the damage, it is necessary to precisely define the damage(s) suffered, whether material and/or moral. Article 182 Bis 1 thus provides that moral damage includes any attack on freedom, honor, or notoriety. The causal link assumes that the contractual fault is the direct cause of the damage.

It is article 182 of the Civil Code which governs the compensation regime. Indeed, it is up to the judge, and in any case, to set the amount of compensation, if it has not been determined in the contract or by law (art.182 al.1). The repair in principle covers the entirety of the damage, which includes two elements: the losses suffered and the gains of which he was deprived, provided that the damage is linked to the contract. Indirect damage is not taken into consideration, article 182 stipulating that compensation must relate to damage which is the normal result of non-performance of the obligation or delay in performance. Furthermore, only damage that the creditor could not avoid is reparable and only foreseeable damage is subject to reparation, unless the debtor has committed gross negligence or fraud.

There is also a conventional repair. It is appropriate to distinguish several situations with, on the one hand, clauses limiting liability (penal clause) and, on the other hand, clauses, which are rarer, exonerating liability. In any event, these latter clauses cannot exempt the debtor from liability in the event of fraud or gross negligence (art. 178).

Concerning penal clauses, it should be noted that it is the parties themselves who set the quantum of the compensation, outside the intervention of the judge. However, when it is established that the amount of compensation is excessive, in view of the damage suffered, or if the main obligation has been partially fulfilled the judge can intervene to reduce it (art. 184, paragraph 2). This provision is of public order since the parties cannot derogate from it by contractual means. It should be noted that when the damage exceeds the amount fixed by the agreement, the creditor cannot claim a higher sum unless he proves fraud or gross negligence on the part of the debtor (art. 185).

4. Commercial and Corporate Law

4.1. General Commercial Rules

In 2015, the principle of homogeneity and/or compatibility of economic activities subject to registration in the commercial register was established even if some exceptions exist based on specific public interest needs (specific commercial utility or local needs for supply).

Registration in the commercial register is required for any natural or legal person, for the exercise of a commercial activity. Any person who engages in commercial activities without being registered in the commercial register is guilty of an offense punishable by law.

Any natural or legal person registered in the commercial register has the status of merchant. As such they are required to mention at the top of their invoices, purchase orders, prices, and prospectuses as well as on all correspondence relating to its business, their registration number.

Nevertheless, certain activities are excluded from the scope of application of Law No. 04-08 on the conditions for carrying out commercial activities (amended), such as:

• agricultural activities
• craftsmen
• civil societies
• cooperatives and non-profit associations
• liberal civil professions
• public establishments responsible for the management of public services, except for public industrial and commercial undertaking (EPIC).

Any commercial company subject to registration in the commercial register is required to carry out the legal advertisements provided for by the legislation and regulations in force.

In the case of multiple registrations, registration in the commercial register proceeded by reference to the basic activity constituting a main activity or establishment and to secondary establishments. The basic activity is the activity mentioned in the first registration in the commercial register. The secondary activity is the extension of the basic activity and/or carried out in the territorial jurisdiction of the wilaya of the establishment. Economic activities declared on a secondary basis are registered in the commercial register, on a summary basis, by reference to the main establishment.

According to the terms of Executive Decree No. 15-111 setting the terms of registration, modification, and deletion from the commercial register, it is possible to register in the commercial register and transmit the related documents electronically.

Some activities and professions are subject to specific rules defined by laws and regulations. Within the meaning of executive decree n15-234 of August 29, 2015, on the conditions and modalities for exercising regulated activities and professions subject to registration in the commercial register, any of the following activities or professions is considered a regulated activity or profession if they are subject to registration in the commercial register and require specific conditions to be authorized. Are especially concerned activities or professions regulated about their specificities and the exercise of which is likely to directly harm concerns or interests linked to public order, the security of property and individuals, the preservation of wealth natural resources and public goods making up the national heritage, public health, or the environment.

Law n°21-15 of December 28, 2021, on illicit speculation applies to speculation, distinct from goods or merchandises shortage (resulting from issues between supply and demand).

Are considered illicit speculation:

• the dissemination of false or slanderous news or information knowingly propagated to the public in order to cause market disruption and a sudden and unjustified increase in prices;
• the use of offers on the market to cause price disruptions or the exceeding of profit margins set by law;
• the presentation of higher price offers compared to those usually charged by sellers;
• the exercise, individually, collectively or by agreement, of an action on the market with the aim of benefiting from a gain not resulting, in a natural way, from supply and demand;
• the use of maneuvers aimed at increasing or decreasing the value of bank notes.

4.1.1. Forms of Business

Merchants are defined by the Code of Commerce as people who usually operate commercial transactions (Code of Commerce, art. 1), which means that if a commercial transaction is not operated on a usual basis, it may not always be granted the status of merchant. Considered as commercial transactions within the field of the Code of Commerce are the following transactions: sales operations (like buying developed or undeveloped properties for the sole purpose of reselling them), renting movable or immovable assets, construction works, provision of services, mines or quarries development, banking, and insurance activities (art. 2). Any transaction made by a merchant in its business interest or development should also be considered as commercial transactions (art. 4), as well as any transaction made by commercial companies, business agencies, business goodwill, or transactions between merchants.

Business goodwill is composed of a range of various assets (Code of Commerce, art. 78). Some are tangible, others are intangible. The fundamental elements are intangible assets and are usually preeminent enough to determine the value of the business goodwill. Such elements are the customer base, the right to the lease and the business name.

Under the regime of a business goodwill, the tenant with a commercial leasehold has a right to renew the lease for at least two years if he signed a written contract. Unless the tenant gives notice within an at least six-month period, the leasehold is renewed tacitly. The renewal period is based on the contract and cannot last longer than nine years (art. 172). If the renewal request is rejected, the lessee is entitled to an eviction indemnity (art. 176).

The specific customer base of the business goodwill is the key element since it generates the turnover. In the case of damages, the business goodwill can be protected by the unfair competition action in order to obtain a compensation and the end of the unfair practice. The business name is the name under which the business is run. Such name can be a patronymic family name or a fanciful denomination. The dedicated legal protection of a business name is the unfair competition action.

Under the article 187 bis of the Code of Commerce in force since February 2005, the eviction compensation regime has been substantially modified: for leases concluded before 2005, the right of the lessor to refuse the renewal of a lease upon expiration was completed by a legal right of the tenant to obtain an eviction compensation. Since 2005 the eviction compensation is a contractual right.

Secondary elements of the business goodwill are composed of other intangible assets (the brand which can be the business name, trademarks, patterns, works of applied art, designs and models or tangible assets (equipment, supplies and goods). A business goodwill may exist without its secondary elements.

In the case of suspension of payments, the legal or natural person declares its insolvency, which will allow the opening of a bankruptcy proceeding (art. 215). Based on the bankruptcy decision, partners who are jointly liable will be also sued (art. 223).

4.1.2. Main Commercial Contracts

Contracts of Sale: A contract of sale is considered as a contract under civil rules, and without specific legal provisions, a contract of sale is subject to the general rules applicable to contracts. Even if it is not a condition for substantive validity, an invoice must be issued by the seller. A contract of sale is a commercial transaction otherwise governed by commercial law. Hence, proof can be proven by any kind of lawful evidence, ten-year limitation period, presuming financial solidarity. The seller has an obligation to guarantee hidden or latent defects (one-year limitation period, nullity of the contract), he must provide the warranty of quiet possession, even from his own cause, and he must guarantee under consumer law, the conformity of the product or service sold.

On the other side, the buyer must comply with the obligation of payment and gain possession of the goods or accept the delivery of the service according to the terms of the contract. The principle set out by the article 388 of the Civil Code is that payment is made at the time the good or the service is delivered. But the contract may decide to separate the two obligations (cash or instalment credit, down payment, deposit, etc.).

Contracts for Hiring or Leasing Goods: A contract for goods, equipment or material hiring is subjected to the ownership by the lessor of the said good or another tangible asset. The lessor is bound by the obligation of delivery, maintenance, and repair. The parties may decide to add an obligation to provide advice with or without the obligation to install the said good or asset. The lessee is bound to take delivery of the good hired, to pay the rent according to the terms of the contract, to compel to compliant usage, and to make restitution when applicable.

Loan Agreements: According to Article 538 et seq. and 450 et seq. of the Civil Code, a loan agreement is not valid until the effective delivery of the expandable or non-expandable thing according to the terms of the contract. In a loan for use (non-expandable items) the borrower has the obligation to pays the rent and to make a restitution of the items, the lender is bound to refrain to interfere in the quiet use by the borrower. But this obligation does not constitute a kind of warranty. In this kind of loan, even in the case of force majeure events, the borrower might be responsible for damage or deterioration he might have prevented. In the case of a simple loan or consumer loan, the lender is responsible of any damage or loss that might occur before the delivery to the borrower. Because the object of such contract is expandable items, the borrower is not bound to restitute the items borrowed but the equivalent in kind and quantity or amount, and to pay interest in the case of an onerous contract. It must be stressed that individuals (private persons) cannot conclude onerous contracts between them. Onerous loan agreements can exclusively be concluded by credit institutions.

Leasing Contracts: Under the provisions of Ordinance 96-09 a leasing contract may be concluded for tangible or intangible assets (including business goodwill). The leasing company acquires a good or asset, rents it to the lessee to sell it to him (transfer of ownership) at the end of the contract.

4.1.3. Commercial Bills and Guarantees

Cheque: Payments made by cheques (Code of Commerce, art. 474 and following) involve three parties: a drawer, a drawee, and a payee. The drawer, who must be legally capable, gives the instruction to the drawee to pay, on demand, a certain amount of money to a beneficiary. A cheque is a payment instrument requiring that the account from which funds should be withdrawn must have a credit balance. It must not be considered as a credit transaction.

Letter (Bill) of Exchange: A letter of exchange (Code of Commerce, art. 420 and following) is an instrument according to which a drawer gives the instruction to a drawee to pay at a certain date a certain amount to a beneficiary. A Letter of Exchange is a short-term credit instrument and is defined as a commercial act. If no deadline is specified, the letter is payable on demand.

Payment Guarantees: Any creditor can benefit from the common pledge on the assets or properties of his debtor on a pro rata basis, each common creditor being treated equally to the others. Even without privilege, these creditors may claim for specific measures such as arrest (seizure or confiscation of the assets of the debtor). The creditor may intervene in a derivative action (Civil Code, art. 188 and following) to proceed to certain decisions in the interest of the debtor in the case he fails to protect his assets or recover money. The creditor may also intervene in an action called “Paulienne” (Article 191 and following of the Civil Code) according to which, in the case of a fraudulent behavior of the debtor, the creditor may seize a property, asset or amount of money that the debtor would have sold or transferred to a third party. Personal guaranties clauses (unilateral contracts) may be inserted in contracts according to the provisions of articles 644 to 673 of the Civil Code. Securities on property may also be concluded (See articles 882 to 936 of the Civil Code on mortgage; articles 969 to 981 of the Civil Code on pledge) according to the movable or non-movable nature of the property concerned by the guaranty).

4.1.4. E-Commerce

The law 18-05 of May 10, 2018, relating to electronic commerce defines electronic commerce as the activity by which an e-supplier offers or ensures, to an e-consumer, remotely and by means of electronic communications, the supply of goods and services The electronic contract is therefore a contract concluded remotely, without the simultaneous physical presence of the parties, through the exclusive use of an electronic communication technique.

Electronic commerce activity remains subject to registration in the trade register or, as the case may be, in the register of crafts and trades, as well as the publication of a site or web page hosted in Algeria with the extension “.com.dz”. Under Article 7 of Law 18-05, sale, and purchase by means of cross-border electronic communication are exempt from foreign trade and exchange control formalities when the amount of the transaction does not exceed the equivalent in dinars of the limit set by the legislation and regulations in force.

Regarding the requirements relating to commercial transactions by electronic means, the law stipulates that any transaction must be formalized by an electronic contract validated by the e-consumer. Furthermore, ordering a product or service should follow the three main following steps:

• Acceptance by the e-consumer of the contractual conditions.
• Verification of the details of the transaction by the e-consumer with the possibility of introducing modifications and/or cancellation of the order.
• Confirmation of the order by the conclusion of the contract.

After the conclusion of the electronic contract, the e-supplier remains legally responsible towards the e-consumer for the proper execution of the obligations resulting from the concluded contract. For the payment of electronic transactions, the law provides that this payment is made, remotely or upon delivery of the product, by the authorized means of payment authorized by the legislation in force. Electronic payments are made through dedicated payment platforms set up and operated exclusively by banks approved by the Banque d’Algérie and Algérie Poste and connected to any type of electronic payment terminal via the network of the public telecommunications operator.

4.1.5. Personal Data

Law n° 18-07 on the protection of natural persons (data subjects) with regards to the processing of personal data (see also Presidential decree n°23-73 of February 14, 2023). The provisions of the law are similar to the European regulation (EU) 2016/79 on data protection (“GPRD”). It is based on the explicit consent the data subjects if the processing is not required to comply with legal provisions, for the protection of the data subject himself or its own interests, for the legitimate interests of the controller, the performance of the contract, reasons relating to public interest or authority. It also provides that personal data processing must comply with lawfulness and fairness obligations together with specific, explicit, and legitimate purposes or kept for a period not exceeding that necessary to achieve the purposes for which they have been collected or processed.

Similar to the GRDP, the law n°18-07 grants data subjects with protective rights: right to protect identity of the controller or purposes of the processing, access to certain information concerning the processing, rectification, object, and object to direct marketing purposes. T0 guarantee the abovementioned rights to the data subjects, the controller also has the obligation to ensure the implementation of appropriate technical and organizational measures to protect the personal data he processes.

But the law has not implemented the principles of data protection by design, meaning that data processing is subject to prior declaration to the national official authority by default. The authority may require the application of the prior authorization dispositions to data processing considered as harmful to privacy, freedom, or fundamental rights. Data processing of special categories of data is not authorized except for public interest reasons where the processing is necessary to protect the vital interests of the data subject. The law also creates the national authority on personal data protection. The authority is responsible for ensuring that a processing does not threat people’s rights and public freedoms or private life.

Among its functions, the authority issues authorizations and receives declarations relating to the processing of personal data, receive claims, appeals and complaints relating to the implementation of data processing personal character, authorizes cross-border transfers of personal data, pronounces administrative sanctions, etc. The authority authorizes the transfer of data processing to foreign countries according to the level of protection in force in such countries.

4.1.6. Status of Foreign Traders (Professional Card, formerly “Merchant Card”)

Apart from the provisions relating to the conditions of registration in the commercial register of any natural or legal person, the executive decree no. 06-454 defines the conditions for issuing the professional card to foreigner traders practicing a commercial, industrial, artisanal activity or a liberal profession, as well as to members of the boards of directors or supervisory boards of commercial companies and management bodies, management and administration, of statutorily responsible for the administration and management. Registration in the commercial register confers the status of merchant to associated managers, or members of the boards of directors and supervisory boards of commercial companies.

The obtention of the professional card must be justified by one of the following cases:

• a registration in the trade register for the exercise of a commercial activity;
• an entry in the register of crafts and trades for the exercise of a craft activity;
• a registration on the roster of the order or organization governing the profession for the exercise of a liberal activity.

The professional card is valid for a renewable two-year period.

4.2. Company Law

Under article 416 of the Civil Code, legal entities are created by contractual means either by legal or natural persons to share the profit of a common activity, to generate savings or to aim at a common economic interest. Any partnership, limited partnership, limited liability company or joint-stock company is considered as a commercial company (Company Code, art. 544). But if legal or natural persons can be recognized as merchants, only legal persons (with a minimum capital of DA 2 million) can set up an import/export activity.

4.2.1. General Provisions

Companies are divided into two general categories: civil and business companies. Some companies are business companies because of their legal form: joint-stock company (sociétés par actions), private limited company (société à responsabilité limitée – SARL), small business as a limited company (entreprise à responsabilité limitée – EURL), partnership limited by shares (société en commandite par actions – SCA), limited partnership (sociétés en commandite simple), general partnership (sociétés en nom collectif – SNC).

According to the prevailing element among the two following criteria, these companies can be qualified as companies or partnerships. The first criterion is the regime of the liability of the partners: in a partnership a partner is liable with his own assets and a creditor may require the whole debt to any of each of the partners. In a business company, each partner is liable only to the extent of his contribution but without limitation of the amount owed to the creditor.

The second criterion refers to how important the intuitu personae is. If strong, meaning that the company is set up because of the individual qualities of its partners, the company will be categorized as a partnership. One of the main consequences is that the disposal of the shares will be possible (in a company) or not (in a partnership).

General rules are contained in the following provisions:

• General partnership: Code of Commerce art. 551 bis to 563 bis 10
• Limited liability company: (Minimum capital of 100 K DA), Code of Commerce, art. 564 to 591
• Joint stock company: (minimum capital of 1 MDA (5 M DA for publicly traded companies), Code of Commerce, art. 592 to 715 bis 132

Limited partnership: Code of Commerce, art. 715 ter to 717 ter 10.

The form, the duration (which cannot exceed 99 years), head office (Algerian law applies to companies having an activity in Algeria) and name of a company must be defined by the statutes while incorporating (or dissolution) documents must be registered in the registry of commerce upon nullity (Code of Commerce, art. 548). Once the company created, a managing director is appointed by the partners. Once appointed he cannot hold an employment contract with the company. Any agreement between the company and one of the directors requires a prior authorization from the management board after a report from the auditor.

The share capital of limited liability companies must be in a registered form (Code of Commerce, art. 567) and cannot be represented by negotiable instruments. If partners can be freely transmitting their shares to their spouses, ascendants or descendants, the selling to a third person must be approved by the majority of at least three-quarters of the capital share and registered in an authenticated document.

According to the Ordinance n°96-27, a company whose capital share is held by more than 50% by one company is its subsidiary. Holding less than 50% of a share capital means holding an equity participation in a company (Code of Commerce, art. 729). A company holding directly or not more than 50% of voting rights of the share capital it owns or pursuant to an agreement with other shareholders or partners or if it holds more than 40% of the voting rights and no other partner or shareholder, directly or not, hold more than what it holds, so that it can make decisions during shareholder’s meeting.

Such companies controlling other companies are called “holding companies.” When a company takes control of another company registered in Algeria, it must be notified in the annual report (see art. 716).

Two or more legal persons may write an agreement to create a grouping for a limited period and for the purpose to use any mean to facilitate and develop the economic activity of its members or improve and increase its results. The agreement is not opposable to third parties until it is published.

The existence of a grouping does not require making and sharing profits and it can exist without capital, but it has a personality in law. The rights of its members cannot be represented by negotiable instruments, but they can issue bonds.

4.2.2. Main Forms of Companies

General Partnership (Société en nom collectif – SNC): This form of company is adapted for small businesses in which partners are willing to control the decisions. Each partner is partners is liable for the full amount for the company’s liabilities with its own assets. A minimum of two partners is required, all of them must be merchants (commerçants). Contribution to the capital can be made in cash, in kind or in services units with no minimum amount. The capital is represented by non­transferable and inalienable shares. General partnerships are companies in which the intuitu personae is prevalent element. In a general partnership, each partner is legally considered as a manager. But the article of association of the company may contain different provisions according to which, for example, only one partner is appointed manager.

Private Limited Company (Société à responsabilité limitée – SARL): In private limited companies, the partners’ liability is limited to their contributions. If created by a single partner, the private limited company is called a single owner limited liability company (EURL). Contribution to the capital can be made in cash, in kind or in services units with a minimum amount of 100,000 DA divided into shares of at least 1,000 DA. The regime of the transfer of shares appears to be hybrid between business companies and partnerships: The transfer is free between partners but must be approved by the majority of at least three quarters of the partners. If disapproved, the shares must be bought back by the other partners. One (or more) person is appointed manager of the company. The manager may be at the same time an employee.

Joint Stock Companies: In the case of a joint stock-companies (Code of Commerce, art. 592 to 715 bis), the capital is divided into shares between at least seven partners who are liable only to the extent of their contribution. In these companies the number of votes is equal to the number of shares subscribed and cannot exceed 5 percent of the total capital share. If the company is not listed on a regulated market, the minimum legal capital is 1,000,000 DA, 5,000,000 DA if listed on a regulated market. Shares can be transferred freely since the intuitu personae is not supposed to prevail in this form of company. The chief executive officer (president of the General Assembly) effectively leads the company and is considered as the managing director.

If fictive dividends are distributed or if a false balance sheet is communicated or published to hide the actual situation of the company, the president, the directors, or the executive officers can be sentenced to a fee and a one to five years’ period of imprisonment.

The board of directors of a joint-stock company is composed of at least three members and no more than twelve. They are elected by the ordinary general meeting of shareholders for a duration that cannot exceed six years and each natural person cannot belong to more than five directors. If they can be reelected, they can be dismissed at any time by the ordinary general assembly. The Board of Directors also decides of the amount of the attendance fee of its members and elects a President for a duration that cannot exceed six years. He can be dismissed at any time.

An extraordinary shareholders meeting can decide to update the statutes to introduce a Management Board (three to five members) controlled by a supervisory board (which members cannot belong to the Management Board). On the other hand, an ordinary shareholders’ meeting will deal with any other subject than the modification of the statutes. It meets at least once a year.

Accounting records must be kept by any commercial company with a personality in law (art.716): assets and liabilities must be accounted and the operating account, a profit and loss statement and the balance sheet must be kept. All these documents are sent to the statutory auditor together with a report on the activity during the year. Once validated by the shareholders’ meeting, the corporate accounts are deposited in the registry of commerce (Code of Commerce, art. 717).

Dividends: the share paid as dividends is decided by the shareholders’ meeting after the approval of accounts (art. 723). The shareholders’ meeting (or in its absence, the board of directors or the managers) decides the way dividends is being paid in a maximum period of nine months after the closing of the fiscal year (art. 724).

A project of merger or spin-off must be approved by the shareholders meeting and has to contain the purpose and conditions, date of the closing of the accounts, designation of the assets and liabilities to be transferred to the absorbing company, the exchange ratio, the value of merger/spin-off premium. It also must be registered in a notary firm and published in an announcement journal of legal notices.

In the case of a dissolution, a company is in liquidation and its personality in law ends with the company, but it has no effects to third parties if it has not been published and registered in the business and company registry. The names of the liquidators are published in a journal of legal notices of the wilaya where the registered office of the company is located. The liquidators communicate all the information published to the shareholders. The selling of total or part of the assets to the liquidator, its employees, spouse, ascendant or descendant is forbidden.

Public Limited Company: Under the Algerian Company Law at least 3 directors must be appointed, and seven shareholders must hold capital shares. At least one of the shareholders must be an Algerian national. It is not mandatory for a PLC to list on the stock exchange.

Simplified Joint Stock Company (Société par actions simplifiée – SAS): The law n°22-09 of May 5, 2022, updated the Code of Commerce of 1975 by introducing the simplified joint stock company as a new legal form for companies. SAS are commercial entities by virtue of their legal form and not depending on their statutes and can be set up by one or more natural or legal persons. the organization and operation rules are set up by the statutes as well as the minimum amount of the share capital. The SAS may not proceed to a public offering apply for listing on a regulated stock market.

Self-Employment: The Law n°22-23 of December 18, 2022, on self-employed status states the rules applicable to the exercise of the self-employed activity. The law states that any natural person carrying out an individual activity lucrative appearing in the list of eligible activities (to be published in a decree) for status of the self-employed and whose annual turnover does not exceed a threshold set in accordance with the legislation in force. The applicants must request to be registered in the national registry of self-employed persons.

People registered as self-employed and complying to regulatory thresholds are exempted from the obligation to register in the commercial register, benefit from a preferential tax regime and my open a commercial bank account. Additionally, the personal and family residence cannot be subject to seizure, due to debts or damages linked to the said activity.

Non-Trading Company: This form of companies requires a non-business form and a non-trading activity (non-trading or non-stock companies such as the Société civile). Its activity must be a non-trading activity. At least two partners must own a non-trading company without a maximum number. Such partners could be either natural or legal persons. Like private limited companies, contribution to the capital of non-trading companies can be made in cash, in kind or in services units with no minimum amount. One (or more) person is designated as director to lead the company.

Representative Office: While the Algerian government has forbidden foreign companies to incorporate branches, they can still run 100% foreign-owned representative offices, which can only engage in market research or promote the business of the parent company. A representative office requires an accreditation from the authorities every two years, a US$ 20,000 deposit on a frozen resident bank account and a convertible Algerian Dinars corporate account with a minimum deposit.

Selection of Texts:

• Executive decree No 03-453 of December 1, 2003, on trade registration.
• Executive Decree n°15-111 of May 3rd, 2015, on registration, update and removal with the Trade and Company Registry.
• Executive Decree No. 15-249 on the nomenclature of economic activities subject to registration in the commercial register.
• Executive decree n° 20-227 of August 19, 2020, on conditions and arrangement for the exercise of the activity new cars or vehicles dealing.
• Law No 04-02 of June 23, 2004, laying down the rules applicable to commercial practices to regulate the professions and business activities that require special regulation.
• Law No 04-08 of August 14, 2004, on conditions for conducting business that provides inter alia, the basic rules on registration with the trade registry.
• Law n° 15-20 of December 30, 2015, publishing the code of commerce.
• Law n° 17-04 of February 16, 2017, publishing the customs code (modification of the law n°79-07 of July 21st, 1979.
• Law 18-05 of May 10, 2018, relating to electronic commerce defines electronic commerce as the activity by which an e-supplier offers or ensures.
• Law n° 18-07 on the protection of natural persons.
• Law n°21-15 of December 28, 2021, on illicit speculation.
• Law n°22-15 of July 20, 2022, on free zones status.
• Rule n°09-03 on general provisions applicable to banking conditions of banking operations.
• Rule n°08-04 on minimum capital applicable to banks settled in Algeria.
• Rule n°11-08 on internal control of banks and financial institutions.

4.3. Competition Law

An ordinance promulgated in 2003 (Order No. 03-03 of July 19, 2003), repealing Ordinance No. 95-06 of January 25, 1995, has set the conditions for competition in the market, prevents and sanctions restrictive practices and controls economic concentrations. In June 2008, a new law relating to competition came to modify and supplement the 2003 ordinance. This law applies to production, distribution, and service activities. In terms of prices, the new legislation establishes the freedom of prices for goods and services which are determined by competition. To this end, this order gives all these prerogatives to the Competition Council.

Apart from the abovementioned rules, the Commercial Code and the Civil Code, Algerian business law is governed by specific and/or related legislation for each field of activity such as foreign direct investments in Algeria, the establishment of foreign traders, exchange regulations, and insurance.

5. Tax Law

5.1. Global Revenue (Natural Persons)

Individuals with a tax residence in Algeria are taxable on the base of the global revenue provisions. Persons whose global annual net revenue is less or equal to the tax threshold are exempt.

Ambassadors and members of diplomatic corps, consuls from countries providing reciprocal advantages to the members of the Algerian diplomatic and consular corps. Taxable natural persons are those who have a business activity in Algeria, members of partnerships, undeclared partnerships/joint ventures who are jointly and severally liable, whether they reside in Algeria. As far as international tax treaties are concerned, a person is considered to have his tax residence in Algeria if is tax household is in Algeria, if his principal place of residence is in Algeria or if he holds a business activity in Algeria.

Their global revenue (Tax Code, Art. 1) is the addition of the total net revenues coming from (Tax Code, art. 2) the following activities (net of the deficit in an income category, interest rates of professional loans, pension and social security insurance, maintenance allowance):

• Industrial, commercial and craft profits coming from the following activities: industrial, commercial or professions; mining; purchasing or selling properties; renting commercial or industrial buildings; bidding, dealing, conceding communal rights; benefiting from poultry or rabbit activities, salt waters; compensation for Managing Director positions, fishermen or ship-owners.
• Non-commercial professional profits: liberal professions and legal officers who are not considered as merchants.
• Agricultural holdings revenues: non-industrial agriculture and sheep breeding (…) managed by the farmer in the farmer’s own agricultural holding.
• Incomes of developed or undeveloped properties if not included in the profits of an industrial commercial or craft company.
• Investment income (shares or share capital).
• Wages, pensions, or life annuity.
• Capital gains resulting of a transfer for consideration of developed or undeveloped properties.

Tax Rates on Wages and Salaries:

DZD	Tax Rate
< 240 000	n/na
240,001-480,000	23 %
480,001-960 000	27%
960,001-1,920,000	30 %
1,920,001-3,840,000	33 %
> 3,840,000	35 %

Social Security Taxes on Wages

Branches of social security	Employer’s contribution	Employee’s contribution	Fund for charitable activities’ contribution	Total
Social insurances	11,5%	1,5%	n/a	13%
Accidents at work and occupational diseases	1,25 %	n/a	n/a	1,25 %
Retirement	11 %	6,75 %	0,5 %	18,25%
Unemployment insurance	1%	0,5 %	n/a	1,5
Early retirement	0,25 %	0,25 %	n/a	0,5 %
Social housing fund	0,5 %	n/a	n/a	0?5 %
Total	26 %	9 %	n/a	26 %

Investment revenues (dividends) are subject to a withholding tax of 10% while capital gains are exempted during a five-year period. Concerning real estate capital gain, a tax rate of 5% is applied (real estate properties owned for more than ten years are exempted).

5.2. Taxation of Companies

5.2.1. Income Tax

Any company (except partnerships and joint ventures) and public bodies with commercial and industrial activity (art.136) is taxable for its effective profits or business revenues in Algeria.

The net profit is the result of the difference between the net asset value at the closing and opening fiscal year, minus the capital surplus plus debits done during this period (Tax Code, art. 140).

The following charges are deducted to calculate the net profit (Tax Code, art. 141):

• General costs, staff costs, rent of building dedicated to the activity
• Value of capital goods imported without payment
• Depreciation in carrying amount
• Taxes (except the tax on profits)
• Provisions for identified or likely loss or costs to happen.

Global Tax Rates:

Rates	Tax Rate
Normal rate	19 %
Reduced rate	9 %

5.2.2. Capital Gain on Sale

Short-term capital gain result from the selling of elements of the fixed assets acquired or created since a period no longer than three years. Long-term capital gain result from the selling of elements of the fixed assets acquired or created since a period longer than three years. Also considered as fixed assets are fully owned shares or capital shares acquired giving control of at least ten percent of the capital of a third-party company and investment portfolio acquired since a period of at least two years before the selling.

5.2.3. Asset Tax

Subject to asset taxes (Tax Code, art. 274) are individuals with their tax residence in Algeria for their properties (located in Algeria or not) and whose tax residence is not located in Algeria but who owns a property in Algeria. But work-related properties (properties necessary for the activity and share or capital share) are exempted.

5.2.4. Value Added Tax

The VAT is applicable on sale transactions, construction work and provision of services (sales transactions, delivery operations, banking, and insurance operations…). It is applicable to legal or natural persons (VAT Code, art.4) with no consideration of the type of importation transactions possibly involved in the taxable transaction (VAT Code, art.1). In the case of import deals: goods exempted from the VAT in the internal Algerian market are also exempted when imported. In the case of export deals, are exempted of VAT, sales, or work transactions. The main tax rate applicable is the following (see also ANDPME):

• Profit tax: 19% for production of goods, building and public work or tourism; trade and services activities: 25%.
• Tax on global income: withholding tax of 15% on shareholders (natural persons), and from 0 to 40% for salaries depending on the salary range.
• Tax on professional activity: 2% of the turnover
• VAT: 17% (reduced rate of 7%, 0% subject to certain conditions)
• Customs: maximum of 30% (minimum 5%, 0% under certain conditions)
• Transfer duty: from 5 to 8 % (0% under certain conditions)

5.2.5. Local Authority Tax

For the benefit of local authorities, a flat rate tax is calculated on the amount of wages and value of benefits in kind paid by natural or legal persons registered or having an activity in Algeria (Tax Code art. 208). The tax on professional activities (standard tax rate of 2%, 1% applied to the activities of production of goods) based on the annual turnover is allocated to local authorities.

Subject to the property tax as described in Tax Code, art. 248 are developed properties located in Algeria. Also concerned are facilities used as shelters for people or goods, commercial facilities of airports or train stations, soils directly adjacent to buildings, and non-commercial terrains used for commercial or industrial purpose. Public buildings (State, wilaya or municipalities) are exempted from the property tax, if they are dedicated to a public service and do not generate incomes. Places of worship are also exempted.

Subject to the property tax as described in Tax Code, art. 261 are undeveloped properties like terrains located in urbanized areas (or suitable for being urbanized), quarries, sand pits, saltpans, and agricultural land. Public properties (State, wilaya or municipalities, public scientific, social, or educational bodies) are exempted from the property tax, if they are dedicated to a public service and do not generate incomes. Places of worship are also exempted.

Selection of Texts

• Law 17-11 of December 27th, 20170 laying down financial law for 2018.
• International convention and protocol of May 9, 2018. on the prevention of double taxation and tax avoidance (Algeria–The Netherlands).

6. Labor Law

The official working hours amount to 40 hours a week: eight hours a day (including a one-hour period of rest, 30 minutes of which considered as working time). The guaranteed minimum wage amounts to DA 15,000 per month. Extra work time is paid with an additional bonus of 50% per hour.

Foreign workers are allowed to work in Algeria provided they ask for a work permit at the national employment agency. Applications for resident cards must be submitted to the local police station. Salaried workers are employed to provide an intellectual or a manual job and receive a compensation for its workers benefit from trade unions right and collective bargaining, social security and pension entitlement, health, safety and medical services, strikes, etc.

The working relationship exists with written or verbal contracts since the work is done on behalf of the employer. In the case of a verbal agreement, the contract is permanent. If the contract is written, it can be either permanent or temporary. The minimum age to go into a working relationship is sixteen years old. Each worker enjoys a weekly rest of one day (Friday) while annual holidays are based on the number of days worked from July to June (acquisition of a maximum of 2.5 days per month). An employment contract can be modified by a mutual agreement on the changes to be made.

Wages paid include a base salary and bonuses (seniority, overtime, performance, etc.). To allow equal pay for equal work, each employer guaranties equal treatment between its employees. Minimum wages are applicable in some specific business sectors and include the base salary and flat rate allowances or premiums. The breach of an employment contract results either from a resignation of the employee or a collective or individual dismissal.

Working relations also benefit from the framework of collective agreements, which can deal either with global working and employment policy for one or several occupational categories or with specific aspects of working and employment conditions. Such agreements are written and signed by the employer (or a group of employers) and the union representatives.

7. Energy

1971 was a year of nationalization in Algeria, following President Boumediene’s strategy. Nationalization in the field of energy and hydrocarbons was conceived as an extension of a full recovery of the exploitation of the wealth of its soil and Saharan sub-soil (see VALHYD Plan studies). The early 70s was a period of a strong increase of oil prices, and hydrocarbons became a major interest since it would give the country the power to play an important international role while reducing the dependence on occidental countries and developing and modernizing the country according to their own objectives and values. The oil and gas sector generates (2015 E&Y survey) 97% of Algeria’s export revenue and 60% of Algeria’s budgeted resources.

7.1. Mining Activities

Mineral heritage is by nature incorporated into the public domain. But permit or titleholder must implement a major hazard prevention plan. Mineral exploration, prospection or exploitation are subject to the authorization by special permits and payment of corresponding duties. Collecting activity is also subject to authorization and duty payment.

Mining activities can be operated without condition based on status or nationality of the operator providing he has been delivered a permit or title deeds (an impact assessment must be attached to the permit applications form). If exploration permits or title deeds can be transmitted or sold (under authorization of the National Agency for the Mining Heritage), exploitation permits, or title deeds are not considered as mining titles.

These activities can take the form of an industrial undertaking, a small or medium sized undertaking, an artisanal operation, a collection activities or quarries and sandpits exploitations according to the production capacity of the plant and to the automated means involved in the production. Title deeds delivered by the wali in charge can be either authorizations for prospection or exploration permits in the case of mining research, or a mine concession, a small or middle-sized mining exploitation permit, or an artisanal mining activity in the case of exploitation activities. The State may also entrust a private company with public share capital to undertake mining activities on his behalf. In the case of a concession, an agreement is signed with the company beneficiary of the title deed or permit.

The Executive Decree n° 18-202, pursuant to the mining law n° 14-05 sets: the list of mineral substances falling under the regime of quarries (relating to the territorially competent walis, the terms, and procedures for examining files application for mining permits (delivery, renewal…), and procedures for awarding permits exploitation of mines or quarries.

The law defines a general principle that mining permits are granted by tender/adjudication or by direct award. In the case of an adjudication, offers are obtained from bidders, selected as defined by law no. 14-05. In the case of a direct attribution (without a formal call for competition) the Executive Decree of August 8, 2018, provides the conditions and reservations under which the applicant for the mining permit applies.

Obtaining a permit for prospection, exploration or mining is subject to the validation of professional and financial conditions relating to applicant and to the examination of the application by the wali(s) concerned. Whether the licensee should waive his prospection rights, the waiver must be accepted by the national agency for mining activities and the licensee must file the results obtained under the licensed activity.

In the case of a permit for exploration activities, the wali(s) competent for the territory concerned delivers an opinion before the national agency for mining activities may deliver the permit. Granting of the mining exploration permit leads to the cancellation of the mining prospecting permit, case where it exists, and its restitution to the national agency of mining activities.

The mining license is delivered by the national agency for mining activities or the wali territorially competent as part of its infrastructure, equipment, and housing projects. The awarding of a mining license leads to the cancellation of the exploration license.

The Executive Decree contains the following annexes: mining prospecting permit request form, mining exploring permit request form, mining permit request form, quarry permit request form, Quarry exploring permit request form, standard mining license application file.

According to Executive Decree n° 21-320 of August 14, 2021, on the rules and conditions for carrying out refining activities and transformation of hydrocarbons, such activities are carried out solely by the national company or in association with another authorized entity as specified by the national plan for refinery and transformation infrastructures development and as approved by the Minister for Hydrocarbons.

The Executive Decree is completed by the following annexes: the list of refining and processing activities, corresponding infrastructures, main facilities and main products and the request for prior agreement and approval for activities refining and processing form.

7.2. Hydrocarbons

Sonatrach is a public owned company supplementing the action of the State in the field of research, exploitation, transport, refining and transformation of hydrocarbons. Hydrocarbon resources or substances unveiled or not, are national properties, which the State is in responsible for. Environmental considerations must be considered in the exploitation of these resources. Exploration, exploitation, transportation, refining, or transformation activities are commercial transactions opened to any natural or legal person with a fiscal existence in Algeria.

Net oil and gas prices are established on a yearly basis to promote low environment impact hydrocarbon products and encourage natural gas consumption in industrial activities. The sales prices include the price measured at the refinery gate, refining, transport, storage, and distribution costs in addition to depreciation cost and a reasonable margin. The main taxes applicable to research and exploitation activities are a superficiary tax, an income tax (payable on a yearly basis), monthly royalties and tax on oil profits and property tax on operating assets.

7.3. Nuclear Activities

Law n°19-05 of July 17, 2019, on nuclear activities creates a national nuclear safety and security authority as an independent administrative authority, reporting to the Prime Minister, in charge of the implementation and respect of nuclear safety and security rules and radiation protection, defined by the provisions of this law and texts taken for its application.

The law provides that nuclear safety aims to protect individuals, society, and the environment against risks radiological potential by establishing and maintaining nuclear installations with appropriate provisions and effective. In this way, nuclear installations must be operated as to maintain exposure to ionizing radiation below prescribed limits and low as possible and must satisfy, in permanence, to nuclear safety rules during its design, its construction, its operation, its definitive shutdown, decommissioning and dismantling.

Subject to prior authorization are site selection, construction, testing in service, operation, modification, decommissioning and the dismantling of nuclear installations, possession, use, importation, export and production of radiation sources ionizing, production, transformation, transfer, use outside nuclear installations and storage of nuclear materials or specific equipment, importation and/or exportation of nuclear materials and specific equipment, transport of radioactive materials. Importation of nuclear waste is prohibited.

The inspectors of the national authority are authorized, at any time, to inspect any nuclear installation or place where nuclear materials are held or used, sources of ionizing radiation and radioactive waste, all means of transport of nuclear materials and radioactive sources and obtain from operators or users all documents or information they request.

Selection of Texts:

• Law n° 86-14 of August 19, 1986, on prospection, research, exploitation, and pipeline transportation of hydrocarbons (Official Journal n°35 of August 27, 1986)
• Decree n° 87-157 of July 21, 1987, on the classification of hydrocarbon research and exploitation areas (Official Journal n°30 of July 22, 1987)
• Decree n°87-158 of July 21, 1987) on identification and control modalities of foreign applicant companies for prospection, research, and exploitation of liquid hydrocarbons (Official Journal n°30 of July 22, 1987)
• Decree n° 87-159 of July 21, 1987, on the involvement of foreign companies in prospection, research and exploitation of liquid hydrocarbons (official Journal n° 30 of July 22, 1987)
• Decree n° 88-34 of February 16, 1988, on granting and withdrawal of mining rights for prospection, research and exploitation of hydrocarbons (Official Journal n°7 of February 17th, 1988).
• Law n°05-07 of April 28, 2005, on Hydrocarbons (Official Journal n°50 of July 19, 2005)
• Law n°19-05 oj July 17, 2019, on nuclear activities
• Ordinance n° 06-10 of July 29, 2006, supplementing and amending law n°05-07 of April 28th, 2005, on Hydrocarbons (Official Journal n°48 of July 30th, 2006)
• Executive Decree n°07-297 of September 27, 2007, on pipeline transportation works construction permit and pipeline transportation of hydrocarbons (Official Journal n°63 of October 7th, 2007)
• Executive Decree n° 07-294 of September 26, 2007, on the procedures and conditions for the granting of permit to prospect for hydrocarbons.
• Executive Decrees n° 07-184 and 07-185 of June 9, 2007, on the Procedures of research and exploitation contracts and hydrocarbon exploitation contracts following a call for tender (Official Journal n°63 of October 7, 2007)
• Executive Decree n° 08-115 of April 9, 2008, on prohibited relationships between buyers and sellers in a gas contract (Official Journal n°20 of April 13, 2008)
• Executive decree n°10-21 of January 12, 2010, supplementing and amending Executive Decree n°07-391 of December 12th, 2007 (Official Journal n°04 of January 17, 2010)
• Executive Decree n° 10-182 of July 13, 2010, on tariffs and calculation methodology of pipeline hydrocarbon transportation rate per area (Official Journal n°43 of July 14, 2010)
• Executive Decree n° 18-202, pursuant to the mining law n° 14-05

8. Foreign Investments

8.1. Investment

The regime applicable to investments in economic activities producing goods and services is governed by the provisions of Law No. 22-18 of July 24, 2022, relating to investment. Although the law n°16-09 of August 3, 2016, has been repealed, the new regime maintains in force the rights and advantages legally acquired by investors until the expiration of the duration of said advantages.

Law n° 22-18 defines the rights and obligations of investors and the incentive regimes applicable to investments in economic activities producing goods and services, carried out by natural persons or legal entities, national or foreign, resident or non-resident. Eligible sectors and activities are mines and quarries, agriculture, aquaculture and fishing, industry, food, pharmaceuticals, petrochemicals, services and tourism, new and renewable energies, knowledge economy, and information and communication technologies.

The provisions of the law are based on the principles of freedom to invest, transparency and equal treatment, and they apply to the investments made through:

• the acquisition of assets, material or intangible, directly involved in the production activities of goods and services, as part of the creation of new activities, the extension of production capacities and/or the rehabilitation of the production tool;
• participation in the capital of a company in the form of contributions in cash or in kind;
• the relocation of activities from abroad.

If registered with the competent one-stop service prior to their implementation, investments may benefit from one of the following incentive schemes:

• the incentive regime for priority sectors (sector regime);
• the incentive regime for the areas to which the State grants a particular interest (zonal regime).

The law states the following special tax regime for eligible investments for the sector regime benefit, in addition to the tax, parafiscal and customs incentives provided for under common law:

• As part of the implementation phase:
  • exemption from customs duties for imported goods used directly in the realization of the investment;
  • exemption from VAT for goods and services imported or acquired locally, entering directly into the realization of the investment;
  • exemption from the transfer tax, for consideration, and from the land registration tax, for all real estate acquisitions made as part of the investment concerned;
  • exemption from registration fees payable for company constitutive documents and capital increases;
  • exemption from registration fees, the land registration tax as well as state remuneration relating to concessions of built and undeveloped real estate, intended for the realization of investment projects;
  • exemption from property tax on movable properties, falling within the scope of the investment, for a period of ten years.
• As part of the operating phase, for a period of three to five years:
  • exemption from corporate income tax;
  • exemption from tax on professional activity.

The law also provides the following special tax regime for eligible investments for the zonal regime benefit, in addition to the tax, parafiscal, and customs incentives provided for under common law:

• During the implementation phase: advantages provided investments made during the implementation phase under the sector regime;
• During the operating phase: for a period ranging from five to ten years;
• exemption from corporate income tax;
• exemption from tax on professional activity.

Executive decree n°19-149 of April 29, 2019 on the start of the operating phase of investments issued pursuant to the law n°16-09 on investment promotion states that the statement of facts that the operating phase of the investment has started (totally or partially) must be drawn up by the investor in minutes (compliant with the form annexed to the executive decree), assessing that his commitments have been fulfilled enough to start the activity concerned by the investment.

8.2. Foreign Investments

Investments with external contribution benefit from the guarantee as capital invested and net profit sold. Banks, financial institutions, and licensed intermediaries are entitled to examine the requests for transfer, and to proceed to the transfer in respect of dividends, profits, or disposal of the foreign investments, together with attendance fees for foreign board directors.

During the implementation phase of a foreign investment project (see The National Agency of Investment and Development), the following taxes rate are equal to 0%: VAT, customs, and transfer duties. During the operational phase, a 0% rate is applicable for the tax on profits and the tax on the professional activity. Additional advantages are also provided with local financing programs and export incentives. Profits and dividends of mixed investments (national and foreign investments) can be transferred within the limit of the amount of the foreign contribution in the capital.

Excluded from the foreign investments regime are activities not registered in the Commercial Register, and some imported second-hand capital goods in the case of relocation of activities from foreign countries. The beneficiaries of the foreign investments regime are not allowed to sell or transfer their investments before the end of the depreciation period without reporting to the Tax Office and the commitment of the purchaser to undertake the liability for the obligations incumbent to the initial investor. In the case of a partial transfer of assets, the pro-rated part of the advantages perceived from the foreign investments regime will be refunded.

Excluded from the regime are activities such as restaurants, drugstores, wrapping and packaging, real estate agencies, insurance general agencies, commercial agents, stockbrokers.

8.3. Transparency

Completing the legal framework in force (referring, among other national and international texts, to the law on anti-money laundering and combating the financing of terrorism of February 6, 2005, and the law on prevention and fight against corruption of February 20th, 2006), the law n°22-08 of May 5, 2022, sets the organization, composition, and attributes of the High Authority for Transparency and its fight against corruption.

The law aims to achieve indicators of the highest levels of integrity and transparency in Algeria’s public affairs management. Its jurisdiction comprises general attributions and missions in the field of the prevention and fight against corruption. More specifically, the Authority will receive asset declarations and ensure their treatment and control. Therefore, it is responsible for administrative and financial investigations into signs of illicit enrichment of a public official who cannot justify the substantial increase in its assets. Professional or banking secrecy is not enforceable against the High Authority.

The High Authority may also receive alerts or complaint by any natural or legal person in possession of information, data or evidence relating to acts of corruption. The Authority may send a formal notice to the person concerned if the answers given are considered as inadequate, order injunctions, or refer the matter to the territorially competent Attorney General.

Selection of Texts:

• Executive Decree n° 07-08 of January 11, 2007, laying down the list of activities, goods and services excluded from the benefit of the ordinance, as supplemented and amended, n°01-03 of August 20, 2001, on the development of investment.
• Executive Decree n°07-121 of April 23, 2007, implementing the ordinance n°06-11 of August 30, 2006, on the conditions and modalities of public land concession for investment purpose.
• Ordinance n°08-01 of February 28, 2008, supplementing ordinance n°01-04 of August 20, 2001, on organization, management, and privatization of public economic companies.
• Law n° 08- 11 of June 25, 2008, on the conditions of entry, stay and movement of foreign people in Algeria.
• Ordinance n° 2008-04 of September 1, 2008, on the conditions and modalities of public land concession for investment purpose.
• Executive Decree n°2009-152 of May 2, 2009, on the conditions and modalities of public land concession for investment purpose.
• Law n°14-05 of February 24, 2014, on mining activities.
• Executive decree n°19-149 on promotion of investment.
• Law n° 22-18 on investments.
• Law n°23-01 on prevention and control against money laundering and financing of terrorism.

9. Key Facts on Algeria

According to the World Bank survey Doing business in Algeria 2018, Algeria ranks 145th out of 190 economies for the topic “Starting a business” and 71 for the criteria “resolving insolvency”.

• Capital: Algiers
• Area covered: 2,381,741 sq km
• Time Zone: GMT +1
• Population: 44,903,2252
• Unemployment rate: 15,6 % (2022)
• Average salary (per month): 23 K DA (private sector)
• Inflation rate (October 2012): 9,4%
• GNI (Gross National Income) per capita (US$) 2022: 3,900
• Currency: Dinar (exchange rate)
• Weights and measures: metric system
• Telephone numbers (country code): +213

10. Bibliographical and Specialized Resources

80 to 100 companies compose the overall national Algerian publishing sector. Considering the legal side of this market, a few players can be identified, most of them being public actors. This contributes to explain why official documents (codes, laws, and regulations) and official databases (available via the web sites of public institutions) play such an important role and why a lot of information are available online (internet and digital communication is a public strategic development orientation).

Still, sometimes, incomplete, or not up-to-date content might be disappointing for professionals and investors looking for accurate data in their business. The following chart is a selective list of legal institutional and business sources. Even if some websites propose an English version, most of the time documents are either in Arabic or in French. Major foreign or international sources are not mentioned in this guide (World Bank, World Trade Center, LOC, embassies, governmental agencies…).

Further resources:

• Berti Editions
• L’Harmattan
• Editions Universitaires de Dijon
• Editions ANEP
• LexisNexis France
• UBIFrance
• Moniteur du Commerce International
• Imprimerie Officielle
• Office des Publications Universitaires
• Editions Dahlab

10.1. Major National Public Sources

Source	URL	Language	Contents
President of the Republic	https://www.el-mouradia.dz/francais/Sommaire.html	Arabic	General information on the country, the Government and its institutions.
First Minister, Government	https://premier-ministre.gov.dz/fr	Arabic, French	Information on the major public plans and actions including Justice, Economic Development, Industry, Finance Acts.
National Council	www.majliselouma.dz	Arabic only
Constitutional Council	https://cour-constitutionnelle.dz	Arabic, French	Advice, Decisions, “Proclamations”, constitutional texts.
State Council	http://www.conseildetat.dz	Arabic, French	Mainly information on organizational issues.
National People’s Congress	http://www.apn.dz/fr/	Arabic, Tamazight, English, French	Laws, oral questions to the Government.
Official Journal	https://www.joradp.dz/HAR/Index.htm	Arabic, French, English	PDF version of the Official Journal.
Ministry of Justice	https://mjustice.dz/	Arabic, Tamazight, English, French	Online formalities, Judicial map, Institutional News.
Official Portal on Algerian Law (Ministry of Justice)	https://droit.mjustice.dz/	French	Laws, cases, Codes, International Acts, Tribunals and Courts, Legal News, Law Libraries, Other legal resources.
Ministry of Commerce and Promotion of Export	http://www.commerce.gov.dz/	Arabic
Ministry of Finance	http://www.mf.gov.dz/	French, some documents in Arabic	Legal Texts Finance Acts, Reports and various Publications, links to regulatory bodies.
Ministry of Energy	http://www.energy.gov.dz/	Arabic, French	Legal texts, economic information, cooperation
Ministry of Industry and Mines	https://www.industrie.gov.dz/	French, some documents in Arabic	Legal awareness bulletins Public Procurement Code Various Legal Texts on investment and privatizations (Ordinances, Laws, Decrees.
Ministry of Labor	http://www.mtess.gov.dz/index.php/	Arabic
National Agency for Small and Medium Business Development	https://www.smexalgeria.com/the-national-agency-for-the-development-of-smes-andpme/	Arabic, French, English	Economic Business and industrial news, data and information.

10.2. Private Sources

Source	URL	Language	Contents
Goal 08	http://www.algeriacorporategovernance.org/	French	Algerian corporate governance code as prepared by “Goal 08”, a local task force.
Dahmène Touchent, lawyer and law professor	http://lexalgeria.free.fr/cdi.htm	French	Portal on public and private Algerian law with selected links to the official texts or web sites.
Droit Afrique (French publisher)	http://www.droit-afrique.com/pays/algerie/	French	Algerian part of a portal dedicated to African law and cases. An online bookstore is available to buy hard copies of books, codes, OHADA law.
PWC	http://taxsummaries.pwc.com/ID/Algeria-Overview	English	Doing business in Algeria published by PWC, with special contents on tax issues.
INESG (Institut National d’Etudes de Stratégie Globale / National Institute of Global Strategic Studies)	https://inesg.dz/ar/etudes-recherches	French, English, Arabic	General information on Algeria classified by sector.

10.3. Other Resources

Source	Media/URL	Language	Contents
SCALER	CD-Rom, published by Imprimerie Officielle	Arabic, French	Texts published in the Official Journal since 1962.
Cleiss (Centre des Liaisons Européennes et Internationales de Sécurité Sociale / European and International Centers of Social Security Schemes)	https://www.cleiss.fr/docs/cotisations/algerie.html	French	Social contribution rates