Doing Business 2020 Algeria
Economy Profile
Algeria
Page 1
Doing Business 2020 Algeria
Economy Profile of Algeria
Doing Business 2020 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and
the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
insolvency
Employing workers Flexibility in employment regulation and redundancy cost
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Doing Business 2020 Algeria
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency. Doing Business also measures features of employing workers. Although Doing Business does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational studies, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked.
The first Doing Business study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.
To learn more about Doing Business please visit doingbusiness.org
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Doing Business 2020 Algeria
Ease of Doing Business in DB RANK DB SCORE
Region Middle East & North Africa
Algeria
Income Category Upper middle income
Population 42,228,429 48.6
157
City Covered Algiers
Rankings on Doing Business topics - Algeria
81
102
113
121
152
158
165
172
181 179
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Topic Scores
78.0 65.3 72.1 44.3 10.0 20.0 53.9 38.4 54.8 49.2
Starting a Business (rank) 152 Getting Credit (rank) 181 Trading across Borders (rank) 172
Score of starting a business (0-100) 78.0 Score of getting credit (0-100) 10.0 Score of trading across borders (0-100) 38.4
Procedures (number) 12 Strength of legal rights index (0-12) 2 Time to export
Time (days) 18 Depth of credit information index (0-8) 0 Documentary compliance (hours) 149
Cost (number) 11.3 Credit registry coverage (% of adults) 3.6 Border compliance (hours) 80
Paid-in min. capital (% of income per capita) 0.0 Credit bureau coverage (% of adults) 0.0 Cost to export
Documentary compliance (USD) 374
Dealing with Construction Permits (rank) 121 Protecting Minority Investors (rank) 179 Border compliance (USD) 593
Score of dealing with construction permits (0-100) 65.3 Score of protecting minority investors (0-100) 20.0 Time to export
Procedures (number) 19 Extent of disclosure index (0-10) 4.0 Documentary compliance (hours) 96
Time (days) 131 Extent of director liability index (0-10) 1.0 Border compliance (hours) 210
Cost (% of warehouse value) 6.5 Ease of shareholder suits index (0-10) 5.0 Cost to export
Building quality control index (0-15) 12.0 Extent of shareholder rights index (0-6) 0.0 Documentary compliance (USD) 400
Extent of ownership and control index (0-7) 0.0 Border compliance (USD) 409
Getting Electricity (rank) 102 Extent of corporate transparency index (0-7) 0.0
Score of getting electricity (0-100) 72.1 Enforcing Contracts (rank) 113
Procedures (number) 5 Paying Taxes (rank) 158 Score of enforcing contracts (0-100) 54.8
Time (days) 84 Score of paying taxes (0-100) 53.9 Time (days) 630
Cost (% of income per capita) 967.0 Payments (number per year) 27 Cost (% of claim value) 21.8
Reliability of supply and transparency of tariff index (0-8) 5 Time (hours per year) 265 Quality of judicial processes index (0-18) 5.5
Total tax and contribution rate (% of profit) 66.1
Registering Property (rank) 165 Postfiling index (0-100) 49.8 Resolving Insolvency (rank) 81
Score of registering property (0-100) 44.3 Score of resolving insolvency (0-100) 49.2
Procedures (number) 10 Recovery rate (cents on the dollar) 50.8
Time (days) 55 Time (years) 1.3
Cost (% of property value) 7.1 Cost (% of estate) 7.0
Quality of the land administration index (0-30) 7.5 Outcome (0 as piecemeal sale and 1 as going 0
concern)
Strength of insolvency framework index (0-16) 7.0
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Doing Business 2020 Algeria
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the
(number) procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes.
• Preregistration (for example, name verification or reservation,
notarization)
The business:
• Registration in the economy’s largest business city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited
• Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is
company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
• Obtaining approval from spouse to start a business or to leave -Operates in the economy’s largest business city. For 11 economies the data are also collected for
the home to register the company
the second largest business city.
• Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of
registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
Time required to complete each procedure (calendar days) polluting production processes.
• Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
• Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
start on the same day)
company shares, two owners have 20% of shares each, and two owners have 15% of shares
• Procedures fully completed online are recorded as ½ day each.
-Is managed by one local director.
• Procedure is considered completed once final document is -Has between 10 and 50 employees one month after the commencement of operations, all of them
received
domestic nationals.
• No prior contact with officials -Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
Cost required to complete each procedure (% of income per -Leases the commercial plant or offices and is not a proprietor of real estate.
capita) -Has an annual lease for the office space equivalent to one income per capita.
• Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
• No professional fees unless services required by law or
commonly used in practice The owners:
Paid-in minimum capital (% of income per capita) -Have reached the legal age of majority and are capable of making decisions as an adult. If there
• Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old.
or up to 3 months after incorporation -Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.
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Doing Business 2020 Algeria
Starting a Business - Algeria
Standardized Company
Legal form Société à Responsabilité Limitée (SARL) - Limited Liability Company
Paid-in minimum capital requirement No minimum
City Covered Algiers
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Procedure – Men (number) 12 6.5 4.9 1 (2 Economies)
Time – Men (days) 18 19.7 9.2 0.5 (New Zealand)
Cost – Men (% of income per capita) 11.3 16.7 3.0 0.0 (2 Economies)
Procedure – Women (number) 12 7.1 4.9 1 (2 Economies)
Time – Women (days) 18 20.3 9.2 0.5 (New Zealand)
Cost – Women (% of income per capita) 11.3 16.7 3.0 0.0 (2 Economies)
Paid-in min. capital (% of income per capita) 0.0 8.9 7.6 0.0 (120 Economies)
Figure – Starting a Business in Algeria – Score
35.3 82.4 94.3 100.0
Procedures Time Cost Paid-in min. capital
Figure – Starting a Business in Algeria and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
93.1: France (Rank: 37)
93.0: Morocco (Rank: 43)
87.8: Egypt, Arab Rep. (Rank: 90)
84.0: Regional Average (Middle East & North Africa)
78.2: Lebanon (Rank: 151)
78.0: Algeria (Rank: 152)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.
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Doing Business 2020 Algeria
Figure – Starting a Business in Algeria – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
18 6
16
Cost (% of income per capita)
5
14
12 4
Time (days)
10
3
8
6 2
4
1
2
0 0
1 2 3 4 5 6 *7 8 9 10 11 12
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
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Doing Business 2020 Algeria
Details – Starting a Business in Algeria – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain an attestation of the uniqueness of the company name 1 day DA 800
Agency : Commercial Registry (Centre National du Registre du Commerce, CNRC)
The applicant must fill out a form, listing the four proposed company names, and pay a fee for the
name search and the fiscal stamp. The Commercial Registry (Centre National du Registre du
Commerce, CNRC) conducts a name search and issues a name certificate on the same day.
Since February 2015, the uniqueness of the company name can be checked online through the
portal https://sidjilcom.cnrc.dz/web/cnrc/accueil. Although the search and the reservation can be
done online, business founders typically conduct these tasks in-person at the CNRC.
2 Deposit the start-up capital through a notary public 1 day no charge
Agency : Bank
The entrepreneur deposits the capital in the public treasury and obtains a deposit certificate
before drawing up the statues.
3 Obtain the birth certificate of the manager 1 day no charge
Agency : Municipality
A copy of the business manager's birth certificate is required for notarization. It can be obtained at
the Municipality.
4 Notarize the company deeds and submit a specimen of managers’ signatures and a lease 5 days see comments
for the registered office
Agency : Notary Office
Business founders must complete the following procedures with a notary: draw up and notarize
the company's constitution documents, submit a specimen of managers’ signatures, and prepare
and submit the lease for the registered office of the company.
According to Executive Decree n° 08-243, notary fees are:
-5% if the company capital is between DA 1 - 200,000,
-1% if the company capital is between DA 200,001 - 300,000,
-0.7% if the company capital is between DA 300,001 - 400,000,
-0.6% if the company capital is between DA 400,001 - 500,000,
-0.5% if the company capital is between DA 500,001 - 1,000,000,
-0.5% if the company capital is DA 1,000,000 and above.
5 Publish a notice of company incorporation at the legal journal (Bulletin Officiel des 1 day DA 3,000 per page + DA
Annonces légales, BOAL) 55 for publication rights
Agency : Commercial Registry (Centre National du Registre du Commerce, CNRC)
A notice of company incorporation must be published at the Official Bulletin of Legal
Announcements (BOAL). The publication can be requested online through a notary's account at
https://sijdilcom.cnrc.dz/. While there is this online option, the majority of entrepreneurs still prefer
to go in person.
The cost for the online publication is DA 3,000 per page + DA 55 for publication rights per page.
Two pages must be published, in French and Arabic.
6 Apply for company registration at the Commercial Registry 2 days see comments
Agency : Commercial Registry (Centre National du Registre du Commerce, CNRC)
Entrepreneurs must register the company before the Commercial Registry. This must be done
within two months of the formation of the company and it can be done online, while it is most
common to apply in person. According to Law No. 04-08 (April 14, 2004), registration is completed
within 1 day. However, in practice it still takes 2 days to obtain the final registration certificate.
Registration fees are as follows:
- DA 9,472 if the company capital is between DA 30,001 and DA 100,000
- DA 9,872 if the company capital is between DA 100,001 and DA 300,000
- DA 10,112 if the company capital is more than DA 300,000
7 Pay the stamp duty and obtain a receipt 1 day (simultaneously DA 4,000
Agency : Tax Authority and Commercial Registry (Centre National du Registre du Commerce, with previous procedure)
CNRC)
One must pay for the stamp duty. Fiscal stamps are sealed at the fiscal administration. Other
stamps are paid at the CNRC.
8 Register for Income tax, Corporate tax and VAT with the local tax inspectorate 2 days no charge
Agency : Tax Authority
The entrepreneur must register for Income tax (Impôt sur le revenu global des personnes
physiques, IRG), Corporate tax (Impôt sur les bénéfices des personnes morales ou des sociétés,
IBS), and VAT.
Upon registration, the Tax Authority shall issue a certificate of existence between 2 and 5 days
and a tax card (magnetic card) within a minimum period of 30 days (loi n° 05-16 du 31 décembre
2005 portant loi de finances pour 2006 (JO n° 85 du 31 décembre 2005)).
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Doing Business 2020 Algeria
9 Register at the National Health Insurance Authority (CNAS) 1 day no charge
Agency : National Health Insurance Authority (Caisse Nationale des Assurances Sociales des
Travailleurs Salariés, CNAS)
Employees must be registered by the new company before the Caisse Nationale des Assurances
Sociales des Travailleurs Salariés (CNAS), which receives employee declarations.
The employer must report any new employee to the relevant authority within 10 days of hiring.
10 Register at the National Non-Salary Workers' Social Security Fund (CASNOS) 1 day no charge
Agency : National Non-Salary Workers' Social Security Fund (Caisse Nationale de Sécurité
Sociale des Non Salariés, CASNOS)
Business founders must register before the Caisse Nationale de Sécurité Sociale des Non
Salariés (CASNOS), which receives and register employer declarations.
11 Make a company seal 2 days DA 1,800
Agency : Private sector
A company seal must be obtained. The cost of obtaining a company seal depends on the type of
seal, its quality and the price established by the private seal maker.
12 Have the company’s accounting books stamped at the court 1 day DA 8,000
Agency : Court
The accounting and inventory books must be stamped when the company starts its business
activity.
Takes place simultaneously with previous procedure.
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Doing Business 2020 Algeria
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates
The construction company (BuildCo):
• Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
inspections
business city. For 11 economies the data are also collected for the second largest business city.
• Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
• Registering and selling the warehouse after its completion or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
Time required to complete each procedure (calendar days) experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
• Does not include time spent gathering information completion.
• Each procedure starts on a separate day—though procedures
The warehouse:
that can be fully completed online are an exception to this rule
- Will be used for general storage activities, such as storage of books or stationery.
• Procedure is considered completed once final document is
received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
• No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of income per
- Will have complete architectural and technical plans prepared by a licensed architect. If
capita)
preparation of the plans requires such steps as obtaining further documentation or getting prior
• Official costs only, no bribes approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
Building quality control index (0-15) requirements).
• Quality of building regulations (0-2) The water and sewerage connections:
• Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
• Quality control during construction (0-3) delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
infrastructure, a septic tank in the smallest size available will be installed or built.
• Quality control after construction (0-3)
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
• Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
• Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the year; will be 1
inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.
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Doing Business 2020 Algeria
Dealing with Construction Permits - Algeria
Standardized Warehouse
Estimated value of warehouse DZD 24,456,083.70
City Covered Algiers
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 19 15.7 12.7 None in 2018/19
Time (days) 131 123.6 152.3 None in 2018/19
Cost (% of warehouse value) 6.5 4.4 1.5 None in 2018/19
Building quality control index (0-15) 12.0 12.5 11.6 15.0 (6 Economies)
Figure – Dealing with Construction Permits in Algeria – Score
44.0 69.7 67.3 80.0
Procedures Time Cost Building quality control index
Figure – Dealing with Construction Permits in Algeria and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
83.2: Morocco (Rank: 16)
74.3: France (Rank: 52)
71.2: Egypt, Arab Rep. (Rank: 74)
65.3: Algeria (Rank: 121)
61.7: Regional Average (Middle East & North Africa)
53.7: Lebanon (Rank: 164)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
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Doing Business 2020 Algeria
Figure – Dealing with Construction Permits in Algeria – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
6
120
5
Cost (% of warehouse value)
100
4
Time (days)
80
3
60
2
40
20 1
0 0
1 *2 *3 4 5 6 7 8 9 10 11 12 13 14 * 15 16 * 17 18 * 19
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
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Doing Business 2020 Algeria
Figure – Dealing with Construction Permits in Algeria and comparator economies – Measure of Quality
14.5
14.0 14.0
14
Index score
13.5
13.0 13.0
13
12.5
12.5
12.0
12
11.5
11
Algeria Egypt, France Lebanon Morocco Middle
Arab East
Rep. &
North
Africa
Details – Dealing with Construction Permits in Algeria – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a geotechnical study/soil test 14 days DZD 1,175,000
Agency : Private firm
A geotechnical study (soil test) is needed by the engineer to establish the way the foundations of
the building will be set. The cost will depend on the nature of the soil and the number of pits
needed.
2 Obtain an urban certificate 14 days DZD 3,000
Agency : Municipal Authority (Autorité Municipale)
An urban certificate is not a legal requirement to obtain a construction permit. However, in practice
it is required by the architect so that the plans are drawn according to the specificities of this plot
of land.
The owner will make the request to obtain the urban certificate for this plot of land and will receive
it in about two weeks by mail.
3 Obtain a topographical survey 3 days DZD 125,000
Agency : Private Firm
A topographical survey has always been a requirement to establish the building plans.
4 Obtain building permit 60 days DZD 224,021
Agency : Municipal Authority (Autorité Municipale)
The complete application is submitted in 5 copies to the Assemblée Populaire Communal (APC) at
the city level. The application is first approved by the city and then transmitted to the DUCH at the
Wilaya level.
The DUCH (direction de l’urbanisme de la construction et de l’habitat) at the Wilaya (county) level
centralizes all building permit requests submitted at the city level and issues a technical opinion
(avis technique) after consultation with other technical government agencies: SONELGAZ, forests,
civil protection, health, environment, etc. (exact list depends on the type of project).
The documents required are:
• Acte de propriété (property deed)
• Plans of the project prepared by a certified architect and certified engineer for the génie civil
section. Drawings of the structure
• Extrait cadastral (or plan du lotissement where applicable). Extrait cadastral in Rouiba
• Preliminary agreement from utility companies. Authorization for temporary connection during the
construction
• Dessins du systeme d’egout
Construction permits are valid 3 years. If the construction has not been built within this time frame,
the builder must apply for a new one.
5 Inform Municipality of commencement of work 1 day no charge
Agency : Municipal Authority (Autorité Municipale)
It is mandatory to inform the Municipality of the commencement of work as well as of the expected
date of completion.
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Doing Business 2020 Algeria
6 Receive inspection for the first earthworks 1 day no charge
Agency : Controle Tecnique de la Construction
The Technical Agency, an independent technical agency, verifies every major step of
advancement of the structure (“réceptionne ou vise”): there are on average 5 to 8 inspections per
construction.
They control the structure and safety issues. They inspect at each key stage of the construction:
• Verification of the quality of the soil
• First earthworks
• Excavation inspection
• Laying of the foundations
• Installation of the concrete slab
In general only urbanism and civil protection will inspect; no other agency conducts an inspection.
7 Receive excavation inspection 1 day no charge
Agency : Controle Tecnique de la Construction
8 Receive foundation inspection 1 day no charge
Agency : Controle Tecnique de la Construction
9 Receive concrete pouring inspection 1 day no charge
Agency : Controle Tecnique de la Construction
10 Receive second concrete pouring inspection 1 day no charge
Agency : Controle Tecnique de la Construction
11 Notify Municipality of completion of construction 1 day no charge
Agency : Contrôle Technique de la Construction
BuildCo inform the Municipality of the end of construction
12 Request and receive final inspection to obtain certificate of conformity 1 day no charge
Agency : Controle Tecnique de la Construction
When the warehouse is completed, BuildCo must notify the municipality so that it can make a final
inspection of the construction.
The following documents must be included in the request:
• Statement of Completion in duplicate against a receipt.
• Notice of inspection sent eight days prior to the inspection sent by the CPAA to BuildCo
• A written report (Proces Verbal) will be established by a committee comprising of all the relevant
departments, including the fire department at the end of the inspection.
13 Obtain certificate of conformity 23 days DZD 19,000
Agency : Sous direction de l'urbanisme de la Commune
Although the law requires a certificate of conformity, it is seldom issued in practice.
14 Register the building at the Cadastre 1 day no charge
Agency : Municipal Authority (Autorité Municipale)
Before the building can be used as collateral, banks require the property title and the construction
license. This case study assumes that BuildCo already possesses a construction license.
Apply for water and sewage connection 1 day no charge
15 Agency : Société des Eaux et de l'Assainissement d'Alger (SEAAL)
BuildCo applies for water and sewage connections at the Société des Eaux et de l'Assainissement
d'Alger (SEAAL)
16 Notify municipal/communal authority of connection to sewer mains 1 day DZD 15,000
Agency : Municipal/communal authority (Autorité municipale/communale)
When the application for a building permit is submitted, there is a set of plans for utilities which are
sent to utility companies for verification. If the utility companies do not approve these plans, the
building permit will be delayed until all plans are corrected.
Obtain inspection for water connection cost estimate 1 day no charge
17 Agency : Société des Eaux et de l'Assainissement d'Alger (SEAAL)
The Customer Service department will send a team to do a technical and financial study of the
work to be done. The cost estimate is given to the client and payment must be made before the
work is done.
18 Obtain sewage connection 21 days DZD 13,000
Agency : Société des Eaux et de l'Assainissement d'Alger (SEAAL)
Obtain water connection 18 days DZD 25,000
19 Agency : Société des Eaux et de l'Assainissement d'Alger (SEAAL)
Page 14
Doing Business 2020 Algeria
Takes place simultaneously with previous procedure.
Page 15
Doing Business 2020 Algeria
Details – Dealing with Construction Permits in Algeria – Measure of Quality
Answer Score
Building quality control index (0-15) 12.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; Free 1.0
of charge; In official
gazette.
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 1.0
accessible website, brochure or pamphlet? (0-1) documents; Fees to
be paid; Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing Licensed architect; 1.0
building regulations? (0-1) Licensed engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections at various 1.0
phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice; Inspections
are not mandated by
law but commonly
occur in practice
during construction.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0
plans and regulations? (0-2) is done by
government agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use Architect or engineer; 1.0
(Latent Defect Liability or Decennial Liability)? (0-1) Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or Architect or engineer; 1.0
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) Construction
company.
Professional certifications index (0-4) 2.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans Minimum number of 2.0
or drawings are in compliance with existing building regulations? (0-2) years of experience;
University degree in
architecture or
engineering; Being a
registered architect or
engineer.
What are the qualification requirements for the professional who supervises the construction on the ground? (0- University degree in 0.0
2) engineering,
construction or
construction
management.
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Doing Business 2020 Algeria
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining all necessary
clearances and permits The warehouse:
• Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods.
inspections
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
• Obtaining external installation works and possibly purchasing the second largest business city.
material for these works - Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
• Concluding any necessary supply contract and obtaining final - Is a new construction and is being connected to electricity for the first time.
supply
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
• Is at least 1 calendar day The electricity connection:
• Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
• Does not include time spent gathering information kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
• Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the
prior contact with officials warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
excavation or overhead lines) but are all carried out on public land. There is no crossing of other
Cost required to complete each procedure (% of income per
owners’ private property because the warehouse has access to a road.
capita)
- Does not require work to install the internal wiring of the warehouse. This has already been
• Official costs only, no bribes completed up to and including the customer’s service panel or switchboard and the meter base.
• Value added tax excluded The monthly consumption:
The reliability of supply and transparency of tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
• Duration and frequency of power outages (0–3) a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
(assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
• Tools to monitor power outages (0–1) (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
- Tariffs effective in January of the current year are used for calculation of the price of electricity for
• Regulatory monitoring of utilities’ performance (0–1)
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
• Financial deterrents limiting outages (0–1)
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial warehouse in case
study
*Note: Doing Business measures the price of electricity, but it is
not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.
Page 17
Doing Business 2020 Algeria
Getting Electricity - Algeria
Standardized Connection
Name of utility SONELGAZ (via filiale Société de Distribution de l'électricité et gaz d'Alger
(SDA))
Price of electricity (US cents per kWh) 2.1
City Covered Algiers
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 5 4.4 4.4 3 (28 Economies)
Time (days) 84 63.5 74.8 18 (3 Economies)
Cost (% of income per capita) 967.0 419.6 61.0 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 5 4.4 7.4 8 (26 Economies)
Figure – Getting Electricity in Algeria – Score
66.7 71.3 88.1 62.5
Reliability of supply and transparency of
Procedures Time Cost
tariff index
Figure – Getting Electricity in Algeria and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
92.0: France (Rank: 17)
87.3: Morocco (Rank: 34)
77.9: Egypt, Arab Rep. (Rank: 77)
72.4: Regional Average (Middle East & North Africa)
72.1: Algeria (Rank: 102)
62.7: Lebanon (Rank: 127)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in Algeria – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
900
80
800
Cost (% of income per capita)
70
700
60
600
Time (days)
50
500
40
400
30
300
20 200
10 100
0 0
1 2 3 *4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Page 18
Doing Business 2020 Algeria
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Figure – Getting Electricity in Algeria and comparator economies – Measure of Quality
9 8
8 7
Index score
7
6 5 5
5 4.4
4
3
2
1 0
0
Algeria Egypt, France Lebanon Morocco Middle
Arab East
Rep. &
North
Africa
Page 19
Doing Business 2020 Algeria
Details – Getting Electricity in Algeria – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to SDA and await external site inspection 25 calendar days DZD 0
Agency : SONELGAZ (via its subsidiary "Société de Distribution de l'électricité et gaz d'Alger
(SDA)")
The paper version of the application must be submitted at no cost. The application form must be
submitted with the following certified copies: 1) project information sheet; 2) Location map (scale
1/5000 or 1/2000); 3) electric power requirements; 4) ground plan (scale 1/500). The client signs
the contract and reviews the estimate after receiving the plan of works from Société de
Distribution de l'électricité et gaz d'Alger (SDA).
Once the contract is signed and paid, Société de Distribution de l'électricité et gaz d'Alger (SDA)
sends the request for authorization of excavation to the Public Works department of the
Municipality (Direction des Travaux Publics (DTP)). The utility obtains the excavation permit from
the Direction des Travaux Publics on the customer's behalf.
2 Obtain the external site inspection by the utility to receive the technical report and estimate 10 calendar days DZD 0
Agency : SONELGAZ (via its subsidiary "Société de Distribution de l'électricité et gaz d'Alger
(SDA)")
The technical department of the distribution department of SDA carries out a site visit to the
warehouse to finalize the technical study - and prepare the estimate of the connection works. A
representative of the applicant is usually present during the visit. SDA then drafts a technical study
and provides an estimate of the costs.
3 Purchase electrical equipment, including the transformer, and build substation 10 calendar days DZD 4,000,000
Agency : Client's electrical contractor
The customer builds and equips his delivery post under the supervision of the SDA. Recently,
SDA made ready-to-use precast sub-stations units available through at least 5 local
manufacturers. The customer can therefore acquire and install these items in a shorter time. The
majority of customers are now using this option; while more expensive, it saves time by
eliminating work time and the back-and-forth with SDA for equipment approval.
4 Await the external works and meter installation by the utility and sign supply contract 40 calendar days DZD 729,896.45
Agency : SONELGAZ (via its subsidiary "Société de Distribution de l'électricité et gaz d'Alger
(SDA)")
Once the transformer is installed, Société de Distribution de l'électricité et gaz d'Alger (SDA) starts
the external works as well as installing the meter. The client must sign a supply contract and pay a
deposit equivalent to one month of consumption by check or bank transfer. This deposit is
reimbursed to the client at the expiration of the contract.
5 Obtain internal wiring inspection by the utility followed by electricity turn-on 8 calendar days DZD 0
Agency : SONELGAZ (via its subsidiary "Société de Distribution de l'électricité et gaz d'Alger
(SDA)")
The client is responsible for the internal wiring and the technical department of Société de
Distribution de l'électricité et gaz d'Alger (SDA) must approve the final installation before electricity
starts flowing.
Takes place simultaneously with previous procedure.
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Doing Business 2020 Algeria
Details – Getting Electricity in Algeria – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 5
Total duration and frequency of outages per customer a year (0-3) 1
System average interruption duration index (SAIDI) 4.2
System average interruption frequency index (SAIFI) 9.9
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online https://www.creg.dz/D%C
3%A9cisions/D_22-
15_CD_FR.pdf
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 21
Doing Business 2020 Algeria
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the
(number) transaction, the property and the procedures are used.
• Preregistration procedures (for example, checking for liens, The parties (buyer and seller):
notarizing sales agreement, paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
• Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
• Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the
municipality) second largest business city.
- Are 100% domestically and privately owned.
Time required to complete each procedure (calendar days) - Perform general commercial activities.
• Does not include time spent gathering information The property (fully owned by the seller):
• Each procedure starts on a separate day - though procedures - Has a value of 50 times income per capita, which equals the sale price.
that can be fully completed online are an exception to this rule
- Is fully owned by the seller.
• Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years.
received - Is registered in the land registry or cadastre, or both, and is free of title disputes.
• No prior contact with officials - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
official limits), and no rezoning is required.
Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
is 10 years old, is in good condition, has no heating system and complies with all safety standards,
• Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be
taxes).
transferred in its entirety.
• Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase.
excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
Quality of land administration index (0-30) industrial plants, waste storage or certain types of agricultural activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 22
Doing Business 2020 Algeria
Registering Property - Algeria
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 10 5.4 4.7 1 (5 Economies)
Time (days) 55 26.6 23.6 1 (2 Economies)
Cost (% of property value) 7.1 5.6 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 7.5 14.6 23.2 None in 2018/19
Figure – Registering Property in Algeria – Score
25.0 74.2 52.9 25.0
Procedures Time Cost
Quality of the land administration index
Figure – Registering Property in Algeria and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
65.8: Morocco (Rank: 81)
63.4: Regional Average (Middle East & North Africa)
63.3: France (Rank: 99)
59.4: Lebanon (Rank: 110)
55.0: Egypt, Arab Rep. (Rank: 130)
44.3: Algeria (Rank: 165)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
the scores for each of the component indicators.
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Doing Business 2020 Algeria
Figure – Registering Property in Algeria – Procedure, Time and Cost
Time (days) Cost (% of property value)
7
50
6
Cost (% of property value)
40 5
Time (days)
4
30
3
20
2
10
1
0 0
1 *2 3 4 5 6 7 8 9 * 10
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 24
Doing Business 2020 Algeria
Figure – Registering Property in Algeria and comparator economies – Measure of Quality
30
24.0
25
Index score
20 17.0
16.0 14.6
15
7.5 9.0
10
5
0
Algeria Egypt, France Lebanon Morocco Middle
Arab East
Rep. &
North
Africa
Details – Registering Property in Algeria – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a cadastral document identifying the parcel and its owner 15 days DZD 54; (34 DZD
Agency : Cadaster office of the Municipality of Alger (Direction du cadastre de la Wilaya d’Alger, (Cadastre Fee) + 20 DZD
Agence Nationale du Cadastre) (Stamp fee))
The notary obtains a PR4 bis extract from the Cadastre, stating the parcel number and the
owner's name. Since December 2017, it is possible to request the PR4 bis online at
https://www.an-cadastre.dz/#. However, the PR4 bis extract is issued in paper format.
2 Obtain a certificate of non-encumbrances from the Land Registry (Conservation Foncière) 7 days DZD 500
Agency : Local Land Registry (Conservation Foncière)
The notary obtains a non-encumbrance certificate from the Land Registry (Conservation Foncière)
where the property is located. This certificate will inform the buyer whether the property was
previously transferred, if there are any mortgages attached the property, or if there are court
orders or insolvency proceedings charging the property,
The cost is published in Arrété 25/05/2009 (Official Gazette no. 40/2009).
The seller provides the original title (livre foncier) to the Notary in order to prepare the sale and
purchase agreement.
3 Parties provide the relevant documents at the notary and obtain the order of payment 3 days DZD 259,560.84; (3% for
Agency : Notary first DZD 500,000 of
The parties provide the notary with all the relevant documents such as the original Property title, property value, 2% for the
non-encumbrance certificate, birth certificate and the minutes of the shareholders' meeting giving
next DZD 500,000, 1% for
authority to the representative of the company to buy/sell the property on their behalf. The notary
exceeding amount + 17%
takes note of the purchase price and reviews the documents. The notary then issues an order of
payment to the buyer for 50% of the purchasing price (to be deposited in the notary’s account at VAT is applicable on the
the Public Revenue Office), where a corporation is involved (according to the Loi des Finances notary fees)
2018). The deposit will cover:
• Registration fees: 5% of property value (2.5% for each party)
• Notary's fees according to D.E. no.08-243 of 03/08/2008 (Official Gazette no. 45/2008)
• Publication fee (taxe de publicité foncière): 1% of property value
The value added tax is 19% (not added to calculate cost).
4 The buyer pays registration and publication fees into notary’s account at the Public 1 day DZD 1,467,365.02; (6% of
Revenue Office (Trésor Public) the property value (5%
Agency : Public Revenue Office (Trésor Public) registration fee + 1%
The buyer deposits a half of the property value to the Notary's account at the Public Revenue
publication fee))
Office. This deposit will not be returned earlier than 30 days after the completion of the property
transfer (Art. 256 Code d'Enregistrement).
5 Parties sign the contract at the public notary 1 day no charge
Agency : Notary
After the deposit, the buyer provides the notary with the receipt. The notary then drafts the
contract, which is signed by both parties, and issues a provisional copy of the sale agreement to
the seller and a copy of purchase agreement to the buyer. The deed must be written in Arabic or
else it would be considered void. The notary then continues with the registration of the transfer
deed.
6 The notary pays registration fees to the tax authorities (Recette des Impôts) 1 day Already counted in
Agency : Tax authority (Recette des Impôts) Procedure 4
The notary deposits the deed to the Recette des Impots where the property is located for
continuing with the registration formality of the transaction. The Recette des Impots issues an
invoice for the notary to issues a payment of 5% of the purchase value for the registration fees to
the local tax authorities. Subsequently, the tax authorities will check if there are outstanding taxes.
After the review is over, the tax authorities issue an original deed (‘minute de l’acte) to the notary
for his records only. The "minute" is the original received by the notary. The notary must keep it
and cannot make it public.
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Doing Business 2020 Algeria
7 The original deed and documents are filed by the notary at the tax authority (Service de 3 days no charge
l’Enregistrement et du Timbre)
Agency : Tax Authority (Service de l’Enregistrement et du Timbre)
The original deed signed by both parties and all relevant documents are filed in by the notary, at
the tax authority (Service de l'enregistrement et du timbre).
8 File tax declaration and proof of payment at the local tax office (Sous Direction du 1 day no charge
Recouvrement des Impôts)
Agency : Local tax office (Sous Direction du Recouvrement des Impôts)
The Notary files the tax declaration and proof of payment at the local tax office (Sous Direction du
recrouvement des Impôts), within ten days from the date that the contract is signed, and a receipt
will be issued. This receipt is important as it will allow the notary to collect the reimbursement of
50% of the amount deposited in his account.
9 Notary returns deposit to seller 30 days no charge
Agency : Notary
After 30 days, and if there are no objections by the tax office, the notary delivers to the seller a
check for the amount of the deposit or, if applicable, the amount minus the capital gains tax, if the
latter was paid from the deposit.
The notary issues payment for publication fee to the Local Land Registry (Conservation 18 days Already counted in
10 Foncière) for publication and issuance of the new deed Procedure 4
Agency : Local Land Registry (Conservation Foncière)
The notary issues a payment by check for the publication fee of 1% of the purchase value (part of
6% deposited by the seller) accompanied by a copy of the deed. The Land Registry then issues
the updated property title (livre foncier) to the notary.
Takes place simultaneously with previous procedure.
Page 26
Doing Business 2020 Algeria
Details – Registering Property in Algeria – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 7.5
Reliability of infrastructure index (0-8) 1.0
Type of land registration system in the economy: Title Registration
System
What is the institution in charge of immovable property registration? Conservation
Fonciére - Direction
Générale du
Domaine National
In what format are past and newly issued land records kept at the immovable property registry of the largest Paper 0.0
business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?
Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, No 0.0
restrictions and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Agence Nationale du
Cadastre
In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business Paper 0.0
city of the economy—in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing cadastral information No 0.0
(geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral or mapping agency Separate databases 0.0
kept in a single database, in different but linked databases or in separate databases?
Do the immovable property registration agency and cadastral or mapping agency use the same identification Yes 1.0
number for properties?
Transparency of information index (0–6) 1.5
Who is able to obtain information on land ownership at the agency in charge of immovable property registration Only intermediaries 0.0
in the largest business city? and interested parties
Is the list of documents that are required to complete any type of property transaction made publicly available– Yes, on public boards 0.5
and if so, how?
Link for online access:
Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable Yes, on public boards 0.5
property registration in the largest business city made publicly available–and if so, how?
Link for online access:
Does the agency in charge of immovable property registration agency formally commit to deliver a legally No 0.0
binding document that proves property ownership within a specific timeframe –and if so, how does it
communicate the service standard?
Link for online access:
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency No 0.0
in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the immovable property No 0.0
registration agency?
Number of property transfers in the largest business city in 2018:
Who is able to consult maps of land plots in the largest business city? Only intermediaries 0.0
and interested parties
Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
Link for online access: https://an-
cadastre.dz/doc_tarif.
html
Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and No 0.0
if so, how does it communicate the service standard?
Page 27
Doing Business 2020 Algeria
Link for online access:
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the No 0.0
cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 0.0
Are all privately held land plots in the largest business city formally registered at the immovable property No 0.0
registry?
Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
Are all privately held land plots in the largest business city mapped? No 0.0
Are all privately held land plots in the economy mapped? No 0.0
Land dispute resolution index (0–8) 5.0
Does the law require that all property sale transactions be registered at the immovable property registry to make Yes 1.5
them opposable to third parties?
Legal basis: Aticle 29 de la loi 90-
25 du 18/11/1990
portant orientation
foncière (JO n°
49/1990) / L'article
793 du code civil
Algérien. Article 16
of the decree number
75-74, dated
November 12th, 1975
portant etablissement
du cadastre général
et institution du livге
foncier.
Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
Type of guarantee: State guarantee
Legal basis: Article 52 de la
Constitution
algérienne
Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by the immovable
property registry?
Legal basis:
Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., Yes 0.5
checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar; Notary;
Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
If yes, who is responsible for verifying the identity of the parties? Registrar; Notary;
Is there a national database to verify the accuracy of government issued identity documents? No 0.0
What is the Court of first instance in charge of a case involving a standard land dispute between two local Land Division within
businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located the Court that has
in the largest business city? territorial jurisdiction
How long does it take on average to obtain a decision from the first-instance court for such a case (without Between 1 and 2 2.0
appeal)? years
Are there publicly available statistics on the number of land disputes at the economy level in the first instance No 0.0
court?
Number of land disputes in the economy in 2018:
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes
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Doing Business 2020 Algeria
Do married men and married women have equal ownership rights to property? Yes 0.0
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Doing Business 2020 Algeria
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most
recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and
lenders with respect to secured transactions through 2 sets of indicators. The depth of credit
• Rights of borrowers and lenders through collateral laws (0-10) information index measures rules and practices affecting the coverage, scope and accessibility of
• Protection of secured creditors’ rights through bankruptcy laws credit information available through a credit registry or a credit bureau. The strength of legal rights
(0-2) index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers
and lenders and thus facilitate lending. For each economy it is first determined whether a unitary
Depth of credit information index (0–8) secured transactions system exists. Then two case scenarios, case A and case B, are used to
• Scope and accessibility of credit information distributed by determine how a nonpossessory security interest is created, publicized and enforced according to
credit bureaus and credit registries (0-8) the law. Special emphasis is given to how the collateral registry operates (if registration of security
interests is possible). The case scenarios involve a secured borrower, company ABC, and a
Credit bureau coverage (% of adults) secured lender, BizBank.
• Number of individuals and firms listed in largest credit bureau In some economies the legal framework for secured transactions will allow only case A or case B
as a percentage of adult population (not both) to apply. Both cases examine the same set of legal provisions relating to the use of
movable collateral.
Credit registry coverage (% of adults)
• Number of individuals and firms listed in credit registry as a Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:
percentage of adult population - ABC is a domestic limited liability company (or its legal equivalent).
- ABC has up to 50 employees.
- ABC has its headquarters and only base of operations in the economy’s largest business city. For
11 economies the data are also collected for the second largest business city.
- Both ABC and BizBank are 100% domestically owned.
The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants
BizBank a nonpossessory security interest in one category of movable assets, for example, its
machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In
economies where the law does not allow nonpossessory security interests in movable property,
ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for
nonpossessory security interests).
In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any
charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of
ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.
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Doing Business 2020 Algeria
Getting Credit - Algeria
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Strength of legal rights index (0-12) 2 3.1 6.1 12 (5 Economies)
Depth of credit information index (0-8) 0 5.3 6.8 8 (53 Economies)
Credit registry coverage (% of adults) 3.6 15.8 24.4 100.0 (2 Economies)
Credit bureau coverage (% of adults) 0.0 16.3 66.7 100.0 (14 Economies)
Figure – Getting Credit in Algeria – Score
10.0
Score - Getting Credit
Figure – Getting Credit in Algeria and comparator economies – Ranking and Score
DB 2020 Getting Credit Score
0 100
65.0: Egypt, Arab Rep. (Rank: 67)
50.0: France (Rank: 104)
45.0: Morocco (Rank: 119)
41.8: Regional Average (Middle East & North Africa)
40.0: Lebanon (Rank: 132)
10.0: Algeria (Rank: 181)
Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the
strength of legal rights index and the depth of credit information index.
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Doing Business 2020 Algeria
Figure – Legal Rights in Algeria and comparator economies
6
5
5
Index Score
4
4
3.1
3
2 2 2
2
1
0
Algeria Egypt, France Lebanon Morocco Middle
Arab East
Rep. &
North
Africa
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Doing Business 2020 Algeria
Details – Legal Rights in Algeria
Strength of legal rights index (0-12) 2
Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents No
to security interests in movable assets exist in the economy?
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description No
of collateral?
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of Yes
collateral?
May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the No
original assets?
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; Yes
and can the collateral agreement include a maximum amount for which the assets are encumbered?
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an No
electronic database indexed by debtor's name?
Does a notice-based collateral registry exist in which all functional equivalents can be registered? No
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third No
party?
Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure? No
Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law No
protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell No
the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?
Figure – Credit Information in Algeria and comparator economies
9 8
8 7
Index Score
7 6 6
6 5.3
5
4
3
2
1 0
0
Algeria Egypt, France Lebanon Morocco Middle
Arab East
Rep. &
North
Africa
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Doing Business 2020 Algeria
Details – Credit Information in Algeria
Depth of credit information index (0-8) Credit bureau Credit registry Score
Are data on both firms and individuals distributed? No No 0
Are both positive and negative credit data distributed? No No 0
Are data from retailers or utility companies - in addition to data from banks and No No 0
financial institutions - distributed?
Are at least 2 years of historical data distributed? (Credit bureaus and registries No No 0
that distribute more than 10 years of negative data or erase data on defaults as
soon as they are repaid obtain a score of 0 for this component.)
Are data on loan amounts below 1% of income per capita distributed? No No 0
By law, do borrowers have the right to access their data in the credit bureau or No No 0
credit registry?
Can banks and financial institutions access borrowers’ credit information online No No 0
(for example, through an online platform, a system-to-system connection or
both)?
Are bureau or registry credit scores offered as a value-added service to help No No 0
banks and financial institutions assess the creditworthiness of borrowers?
Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult
population, the total score on the depth of credit information index is 0.
Coverage Credit bureau Credit registry
Number of individuals 0 478,735
Number of firms 0 497,164
Total 0 975,899
Percentage of adult population 0.0 3.6
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Doing Business 2020 Algeria
Protecting Minority Investors
This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights,
governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed
in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
• Extent of disclosure index (0–10): Disclosure, review, and To make the data comparable across economies, a case study uses several assumptions about
approval requirements for related-party transactions the business and the transaction.
• Extent of director liability index (0–10): Ability of minority
shareholders to sue and hold interested directors liable for The business (Buyer):
prejudicial related-party transactions; Available legal - Is a publicly traded corporation listed on the economy’s most important stock exchange.
remedies (damages, disgorgement of profits, disqualification - Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of
from managerial position(s) for one year or more, rescission of Buyer where permitted, even if this is not specifically required by law.
the transaction) - Has a supervisory board in economies with a two-tier board system on which Mr. James
appointed 60% of the shareholder-elected members.
• Ease of shareholder suits index (0–10): Access to internal
- Has not adopted bylaws or articles of association that go beyond the minimum requirements.
corporate documents; Evidence obtainable during trial and
allocation of legal expenses Does not follow codes, principles, recommendations or guidelines that are not mandatory.
- Is a manufacturing company with its own distribution network.
• Extent of conflict of interest regulation index (0-30): Sum of
the extent of disclosure, extent of director liability and ease of The transaction involves the following details:
shareholder suits indices - Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to
• Extent of shareholder rights index (0-6): Shareholders’ rights Buyer’s five-member board.
and role in major corporate decisions - Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores.
Seller recently closed a large number of its stores.
• Extent of ownership and control index (0-7): Governance - Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s
safeguards protecting shareholders from undue board control
distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of
and entrenchment
Buyer’s assets and is higher than the market value.
• Extent of corporate transparency index (0-7): Corporate - The proposed transaction is part of the company’s principal activity and is not outside the
transparency on ownership stakes, compensation, audits and authority of the company.
financial prospects - Buyer enters into the transaction. All required approvals are obtained, and all required disclosures
made—that is, the transaction was not entered into fraudulently.
• Extent of shareholder governance index (0–20): Sum of the - The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and
extent of shareholders rights, extent of ownership and control
directors that approved the transaction.
and extent of corporate transparency indices
• Strength of minority investor protection index (0–50): Sum
of the extent of conflict of interest regulation and extent of
shareholder governance indices
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Doing Business 2020 Algeria
Protecting Minority Investors - Algeria
Stock exchange information
Stock exchange Bourse d'Alger
Stock exchange URL http://www.sgbv.dz
Listed firms with equity securities 5
City Covered Algiers
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Extent of disclosure index (0-10) 4.0 6.4 6.5 10 (13 Economies)
Extent of director liability index (0-10) 1.0 4.8 5.3 10 (3 Economies)
Ease of shareholder suits index (0-10) 5.0 4.7 7.3 10 (Djibouti)
Extent of shareholder rights index (0-6) 0.0 3.2 4.7 6 (19 Economies)
Extent of ownership and control index (0-7) 0.0 3.6 4.5 7 (9 Economies)
Extent of corporate transparency index (0-7) 0.0 3.5 5.7 7 (13 Economies)
Figure – Protecting Minority in Algeria – Score
20.0
Score - Protecting Minority Investors
Figure – Protecting Minority Investors in Algeria and comparator economies – Ranking and Score
DB 2020 Protecting Minority Investors Score
0 100
70.0: Morocco (Rank: 37)
68.0: France (Rank: 45)
64.0: Egypt, Arab Rep. (Rank: 57)
51.9: Regional Average (Middle East & North Africa)
44.0: Lebanon (Rank: 114)
20.0: Algeria (Rank: 179)
Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are
the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.
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Doing Business 2020 Algeria
Figure – Protecting Minority Investors in Algeria and comparator economies – Measure of Quality
Algeria 0 1 4 0 5
Egypt, Arab Rep. 6 3 8 6 6 3
France 7 3 8 6 4 6
Lebanon 3 1 9 1 3 5
Morocco 6 2 9 5 6 7
OECD high income 5.6 5.6 6.6 4.3 4.5 7.4
Middle East & North Africa 3.5 4.8 6.4 3.6 3.2 4.7
0 5 10 15 20 25 30 35 40
Sub-Indicator Score
Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7)
Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)
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Doing Business 2020 Algeria
Details – Protecting Minority Investors in Algeria – Measure of Quality
Answer Score
Extent of conflict of interest regulation index (0-30)
Extent of disclosure index (0-10) 4.0
Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Board of directors 2.0
excluding interested
members
Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0
Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Existence of a conflict 1.0
without any specifics
Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) No disclosure 0.0
obligation
Must Buyer immediately disclose the transaction to the public? (0-2) No disclosure 0.0
obligation
Extent of director liability index (0-10) 1.0
Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to Yes 1.0
Buyer? (0-1)
Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2) Not liable 0.0
Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2) Not liable 0.0
Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1) No 0.0
Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1) No 0.0
Is Mr. James disqualified upon a successful claim by shareholders? (0-1) No 0.0
Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of fraud 0.0
or bad faith
Ease of shareholder suits index (0-10) 5.0
Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents? No 0.0
(0-1)
Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) Documents that 2.0
directly prove specific
facts in the plaintiff’s
claim
Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1) Yes 1.0
Can the plaintiff directly question the defendant and witnesses at trial? (0-2) No 0.0
Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0
Can shareholder plaintiffs recover their legal expenses from the company? (0-2) Yes if successful 1.0
Extent of shareholder governance index (0-20)
Extent of shareholder rights index (0-6) 0.0
Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0
Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders? No 0.0
Must Buyer obtain its shareholders’ approval every time it issues new shares? No 0.0
Do shareholders automatically receive preemption rights every time Buyer issues new shares? Yes 1.0
Do shareholders elect and dismiss the external auditor? Yes 1.0
Are changes to the rights of a class of shares only possible if the holders of the affected shares approve? No 0.0
Extent of ownership and control index (0-7) 0.0
Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors? No 0.0
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Doing Business 2020 Algeria
Must the board of directors include independent and nonexecutive board members? No 0.0
Can shareholders remove members of the board of directors without cause before the end of their term? Yes 1.0
Must the board of directors include a separate audit committee exclusively comprising board members? No 0.0
Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer? No 0.0
Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0
Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0
Extent of corporate transparency index (0-7) 0.0
Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? No 0.0
Must Buyer disclose information about board members’ primary employment and directorships in other No 0.0
companies?
Must Buyer disclose the compensation of individual managers? No 0.0
Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0
Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda? Yes 1.0
Must Buyer's annual financial statements be audited by an external auditor? Yes 1.0
Must Buyer disclose its audit reports to the public? No 0.0
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Doing Business 2020 Algeria
Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of
paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was
completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information.
What the indicators measure Case study assumptions
Tax payments for a manufacturing company in 2018 (number Using a case scenario, Doing Business records taxes and mandatory contributions a medium size
per year adjusted for electronic and joint filing and payment) company must pay in a year, and measures the administrative burden of paying taxes,
contributions and dealing with postfiling processes. Information is also compiled on frequency of
• Total number of taxes and contributions paid or withheld, filing and payments, time taken to comply with tax laws, time taken to comply with the
including consumption taxes (value added tax, sales tax or
requirements of postfiling processes and time waiting.
goods and service tax)
• Method and frequency of filing and payment To make data comparable across economies, several assumptions are used:
- TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces
Time required to comply with 3 major taxes (hours per year) ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the
second year of operation (calendar year 2018). Taxes and mandatory contributions are measured
• Collecting information, computing tax payable
at all levels of government.
• Preparing separate tax accounting books, if required
• Completing tax return, filing with agencies The VAT refund process:
- In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times
• Arranging payment or withholding income per capita of the economy. Sales are equally spread per month (1,050 times income per
capita divided by 12) and cost of goods sold are equally expensed per month (875 times income
Total tax and contribution rate (% of commercial profits)
per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred
• Profit or corporate income tax in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs,
sales and the machine and the tax reporting period is every month. Input VAT will exceed Output
• Social contributions, labor taxes paid by employer VAT in June 2018.
• Property and property transfer taxes
The corporate income tax audit process:
• Dividend, capital gains, financial transactions taxes - An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates,
• Waste collection, vehicle, road and other taxes or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a
corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the
Postfiling Index tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax
• Time to comply with VAT refund (hours) liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual
tax return, but within the tax assessment period.
• Time to obtain VAT refund (weeks)
• Time to comply with a corporate income tax correction (hours)
• Time to complete a corporate income tax correction (weeks)
Page 40
Doing Business 2020 Algeria
Paying Taxes - Algeria
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Payments (number per year) 27 16.5 10.3 3 (2 Economies)
Time (hours per year) 265 202.6 158.8 49 (3 Economies)
Total tax and contribution rate (% of profit) 66.1 32.5 39.9 26.1 (33 Economies)
Postfiling index (0-100) 49.8 53.3 86.7 None in 2018/19
Figure – Paying Taxes in Algeria – Score
60.0 66.6 39.0 49.8
Payments Time Total tax and contribution rate Postfiling index
Figure – Paying Taxes in Algeria and comparator economies – Ranking and Score
DB 2020 Paying Taxes Score
0 100
87.2: Morocco (Rank: 24)
79.2: France (Rank: 61)
75.1: Regional Average (Middle East & North Africa)
67.5: Lebanon (Rank: 116)
55.1: Egypt, Arab Rep. (Rank: 156)
53.9: Algeria (Rank: 158)
Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for
each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The
threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing
Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.
Page 41
Doing Business 2020 Algeria
Figure – Paying Taxes in Algeria and comparator economies – Measure of Quality
120
98.6
100 92.4
Index score
80
60 49.8 53.3
36.3
40 27.5
20
0
Algeria Egypt, France Lebanon Morocco Middle
Arab East
Rep. &
North
Africa
Page 42
Doing Business 2020 Algeria
Details – Paying Taxes in Algeria
Tax or Payments Notes on Time (hours) Statutory tax Tax base Total tax and Notes on TTCR
mandatory (number) Payments rate contribution
contribution rate (% of
profit)
Social security 12.0 76.0 26% gross salaries 29.33
contributions
Tax on 0.0 jointly 1% turnover 26.52
professional
activity
Corporate 0.0 jointly 122.0 19% taxable profit 8.14
income tax
Apprenticeship 0.0 jointly 2% net salaries 1.80
tax and traning
tax
Tax on interest 0.0 withheld 10% interest income 0.26 included in other
taxes
Vehicle tax 1.0 DZD 18,000 fixed fee 0.17
Tax on built land 0.0 jointly 3% rental value of 0.12
land
Drainage tax 0.0 jointly DZD 10,000 fixed fee 0.05
Tax on unbuilt 1.0 7% rental value of 0.03
land land
Value added tax 12.0 67.0 19% value added 0.00 not included
(VAT)
Employee Labor 0.0 jointly 9% 0.00 withheld
Tax
Fuel tax 1.0 DZD 4/liter value of fuel 0.00 small amount
Stamp duty 0.0 jointly DZD 40 to DZD number of pages 0.00 small amount
2500 in document
Totals 27 265 66.1
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Doing Business 2020 Algeria
Details – Paying Taxes in Algeria – Tax by Type
Taxes by type Answer
Profit tax (% of profit) 8.1
Labor tax and contributions (% of profit) 31.1
Other taxes (% of profit) 26.9
Page 44
Doing Business 2020 Algeria
Details – Paying Taxes in Algeria – Measure of Quality
Answer Score
Postfiling index (0-100) 49.8
VAT refunds
Does VAT exist? Yes
Does a VAT refund process exist per the case study? No
Restrictions on VAT refund process Restricted to
international traders
and others
Percentage of cases exposed to a VAT audit (%) Not applicable
Is there a mandatory carry forward period? No
Time to comply with VAT refund (hours) No VAT refund per 0.0
case study scenario
Time to obtain VAT refund (weeks) No VAT refund per 0.0
case study scenario
Corporate income tax audits
Does corporate income tax exist? Yes
Percentage of cases exposed to a corporate income tax audit (%) 0% - 24%
Time to comply with a corporate income tax correction (hours) 2.0 99.1
Time to complete a corporate income tax correction (weeks) No tax audit per case 100
study scenario
Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction
and time to complete a corporate income tax correction.
N/A = Not applicable.
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Doing Business 2020 Algeria
Trading across Borders
Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding
tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or
importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded
goods and the transactions:
• Obtaining, preparing and submitting documents during
transport, clearance, inspections and port or border handling in Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as
origin economy
22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively,
• Obtaining, preparing and submitting documents required by suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and
destination economy and any transit economies can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as
24 hours because the actual procedure took 24 hours.
• Covers all documents required by law and in practice, including
electronic submissions of information
Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the
Border compliance costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency
into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire.
• Customs clearance and inspections Contributors are private sector experts in international trade logistics and are informed about
exchange rates.
• Inspections by other agencies (if applied to more than 20% of
shipments)
Assumptions of the case study:
• Handling and inspections that take place at the economy’s port - For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in
or border the largest business city of the exporting economy and travels to a warehouse in the largest
business city of the importing economy.
Domestic transport
- It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from
• Loading or unloading of the shipment at the warehouse or its natural import partner—the economy from which it imports the largest value (price times
port/border quantity) of auto parts. It is assumed each economy exports the product of its comparative
advantage (defined by the largest export value) to its natural export partner—the economy that is
• Transport between warehouse and port/border the largest purchaser of this product. Shipment value is assumed to be $50,000.
• Traffic delays and road police checks while shipment is en - The mode of transport is the one most widely used for the chosen export or import product and
route the trading partner, as is the seaport or land border crossing.
- All electronic information submissions requested by any government agency in connection with
the shipment are considered to be documents obtained, prepared and submitted during the export
or import process.
- A port or border is a place (seaport or land border crossing) where merchandise can enter or
leave an economy.
- Relevant government agencies include customs, port authorities, road police, border guards,
standardization agencies, ministries or departments of agriculture or industry, national security
agencies and any other government authorities.
Page 46
Doing Business 2020 Algeria
Trading across Borders - Algeria
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Time to export: Border compliance (hours) 80 52.5 12.7 1 (19 Economies)
Cost to export: Border compliance (USD) 593 441.8 136.8 0 (19 Economies)
Time to export: Documentary compliance (hours) 149 66.4 2.3 1 (26 Economies)
Cost to export: Documentary compliance (USD) 374 240.7 33.4 0 (20 Economies)
Time to import: Border compliance (hours) 210 94.2 8.5 1 (25 Economies)
Cost to import: Border compliance (USD) 409 512.5 98.1 0 (28 Economies)
Time to import: Documentary compliance (hours) 96 72.5 3.4 1 (30 Economies)
Cost to import: Documentary compliance (USD) 400 262.6 23.5 0 (30 Economies)
Figure – Trading across Borders in Algeria – Score
50.3 44.1 12.3 6.4 25.2 65.9 60.3 42.9
Time Cost Time Cost Time Cost Time Cost
to to to to to to to to
export: export: export: export: import: import: import: import:
Border Border Documentary Documentary Border Border Documentary Documentary
compliance compliance compliance compliance compliance compliance compliance compliance
Figure – Trading across Borders in Algeria and comparator economies – Ranking and Score
DB 2020 Trading Across Borders Score
0 100
85.6: Morocco (Rank: 58)
61.8: Regional Average (Middle East & North Africa)
57.9: Lebanon (Rank: 153)
42.2: Egypt, Arab Rep. (Rank: 171)
38.4: Algeria (Rank: 172)
100: France (Rank: 1)
Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple
average of the scores for the time and cost for documentary compliance and border compliance to export and import.
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Doing Business 2020 Algeria
Figure – Trading across Borders in Algeria – Time and Cost
Time (hours) Cost (USD)
250 700
593 210
600
200
Time (hours)
500
Cost (USD)
149 409 400
150 374 400
96 300
100 80
200
50
100
0 0
Export Export Import Import
- - - -
Border Documentary Border Documentary
Compliance Compliance Compliance Compliance
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Doing Business 2020 Algeria
Details – Trading across Borders in Algeria
Characteristics Export Import
Product HS 28 : Inorganic chemicals; organic or inorganic HS 8708: Parts and accessories of motor vehicles
compounds of precious metals, of rare-earth metals,
of radioactive elements or of isotopes
Trade partner Spain France
Border Alger port Alger port
Distance (km) 7 7
Domestic transport time (hours) 4 4
Domestic transport cost (USD) 283 264
Details – Trading across Borders in Algeria – Components of Border Compliance
Time to Complete (hours) Associated Costs (USD)
Export: Clearance and inspections required by 26.2 121.5
customs authorities
Export: Clearance and inspections required by 65.8 61.3
agencies other than customs
Export: Port or border handling 36.0 410.0
Import: Clearance and inspections required by 96.0 206.0
customs authorities
Import: Clearance and inspections required by 24.0 0.0
agencies other than customs
Import: Port or border handling 113.6 202.8
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Doing Business 2020 Algeria
Details – Trading across Borders in Algeria – Trade Documents
Export Import
Bill of lading Bill of Lading
Cargo release order Cargo Release Order
Commercial invoice Commercial invoice
Custom Export Declaration Custom Import Declaration
Packing List Inspection Report
Health Certificate Packing List
Terminal Handling Receipt Terminal Handling receipt
SOLAS certificate Certificate of conformity
Certificate of origin SOLAS certificate
Avis d'arrivée
Certificate of origin
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Doing Business 2020 Algeria
Enforcing Contracts
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes
index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data
collection was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Time required to enforce a contract through the courts The dispute in the case study involves the breach of a sales contract between two domestic
(calendar days) businesses. The case study assumes that the court hears an expert on the quality of the goods in
dispute. This distinguishes the case from simple debt enforcement.
• Time to file and serve the case
• Time for trial and to obtain the judgment To make the data on the time and comparable across economies, several assumptions about the
case are used:
• Time to enforce the judgment - The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both
Cost required to enforce a contract through the courts (% of located in the economy’s largest business city. For 11 economies the data are also collected for the
claim value) second largest business city.
- The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of
• Average attorney fees adequate quality.
- The value of the dispute is 200% of the income per capita or the equivalent in local currency of
• Court costs
USD 5,000, whichever is greater.
• Enforcement costs - The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of
income per capita or $5,000 whichever is greater.
Quality of judicial processes index (0-18)
- The Seller requests the pretrial attachment of the defendant’s movable assets to secure the
• Court structure and proceedings (-1-5) claim.
- The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods
• Case management (0-6) was not adequate.
• Court automation (0-4) - The judge decides in favor of the seller; there is no appeal.
- The Seller enforces the judgment through a public sale of the Buyer’s movable assets.
• Alternative dispute resolution (0-3)
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Doing Business 2020 Algeria
Enforcing Contracts - Algeria
Standardized Case
Claim value DZD 902,293
Court name Alger Sidi M'hamed Tribunal, Commercial Section
City Covered Algiers
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Time (days) 630 622.0 589.6 120 (Singapore)
Cost (% of claim value) 21.8 24.7 21.5 0.1 (Bhutan)
Quality of judicial processes index (0-18) 5.5 6.6 11.7 None in 2018/19
Figure – Enforcing Contracts in Algeria – Score
58.2 75.6 30.6
Time Cost Quality of judicial processes index
Figure – Enforcing Contracts in Algeria and comparator economies – Ranking and Score
DB 2020 Enforcing Contracts Score
0 100
73.5: France (Rank: 16)
63.7: Morocco (Rank: 60)
56.0: Regional Average (Middle East & North Africa)
54.8: Algeria (Rank: 113)
50.8: Lebanon (Rank: 131)
40.0: Egypt, Arab Rep. (Rank: 166)
Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of
the scores for each of the component indicators.
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Doing Business 2020 Algeria
Figure – Enforcing Contracts in Algeria – Time and Cost
Time (days) Cost (% of claim value)
Cost (% of claim value)
1200 35
1010 30.8
1000 26.2 26.5 30
24.7
Time (days)
21.8 21.5 25
800 721
630 17.4 622.0 589.6 20
600 510
447 15
400
10
200 5
0 0
Algeria Egypt, France Lebanon Middle Morocco OECD
Arab East high
Rep. & income
North
Africa
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Doing Business 2020 Algeria
Figure – Enforcing Contracts in Algeria and comparator economies – Measure of Quality
Algeria 2.5 0 3
Egypt, Arab Rep. 2 0 2
France 2.5 3 2 4.5
Lebanon 2 0.5 0 4
Morocco 2.5 2 0 5
OECD high income 2.5 3.2 2.4 3.6
Middle East & North Africa 2.2 1.1 0.5 2.9
0 2 4 6 8 10 12 14
Sub-Indicator Score
Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)
Details – Enforcing Contracts in Algeria
Indicator
Time (days) 630
Filing and service 21
Trial and judgment 390
Enforcement of judgment 219
Cost (% of claim value) 21.8
Attorney fees 10
Court fees 7.4
Enforcement fees 4.4
Quality of judicial processes index (0-18) 5.5
Court structure and proceedings (-1-5) 3.0
Case management (0-6) 0.0
Court automation (0-4) 0.0
Alternative dispute resolution (0-3) 2.5
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Doing Business 2020 Algeria
Details – Enforcing Contracts in Algeria – Measure of Quality
Answer Score
Quality of judicial processes index (0-18) 5.5
Court structure and proceedings (-1-5) 3.0
1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5
2. Small claims court 0.0
2.a. Is there a small claims court or a fast-track procedure for small claims? No
2.b. If yes, is self-representation allowed? n.a.
3. Is pretrial attachment available? Yes 1.0
4. Are new cases assigned randomly to judges? Yes, but manual 0.5
5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0
Case management (0-6) 0.0
1. Time standards 0.0
1.a. Are there laws setting overall time standards for key court events in a civil case? No
1.b. If yes, are the time standards set for at least three court events? n.a.
1.c. Are these time standards respected in more than 50% of cases? n.a.
2. Adjournments 0.0
2.a. Does the law regulate the maximum number of adjournments that can be granted? No
2.b. Are adjournments limited to unforeseen and exceptional circumstances? Yes
2.c. If rules on adjournments exist, are they respected in more than 50% of cases? No
3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) No 0.0
clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?
4. Is a pretrial conference among the case management techniques used before the competent court? No 0.0
5. Are there any electronic case management tools in place within the competent court for use by judges? No 0.0
6. Are there any electronic case management tools in place within the competent court for use by lawyers? No 0.0
Court automation (0-4) 0.0
1. Can the initial complaint be filed electronically through a dedicated platform within the competent court? No 0.0
2. Is it possible to carry out service of process electronically for claims filed before the competent court? No 0.0
3. Can court fees be paid electronically within the competent court? No 0.0
4. Publication of judgments 0.0
4.a Are judgments rendered in commercial cases at all levels made available to the general public No
through publication in official gazettes, in newspapers or on the internet or court website?
4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made No
available to the general public through publication in official gazettes, in newspapers or on the internet
or court website?
Alternative dispute resolution (0-3) 2.5
1. Arbitration 1.5
1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or Yes
section of the applicable code of civil procedure encompassing substantially all its aspects?
1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— No
that cannot be submitted to arbitration?
1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes
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Doing Business 2020 Algeria
2. Mediation/Conciliation 1.0
2.a. Is voluntary mediation or conciliation available? Yes
2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or Yes
section of the applicable code of civil procedure encompassing substantially all their aspects (for
example, definition, aim and scope of application, desig
2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or No
conciliation is successful, a refund of court filing fees, income tax credits or the like)?
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Doing Business 2020 Algeria
Resolving Insolvency
Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate,
which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings.
To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with
data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019. See the methodology for more
information.
What the indicators measure Case study assumptions
Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several
assumptions about the business and the case are used:
• Measured in calendar years
• Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel
experiences financial difficulties.
Cost required to recover debt (% of debtor’s estate) - The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD
200,000, whichever is greater.
• Measured as percentage of estate value - The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate.
• Court fees The hotel cannot pay back the loan, but makes enough money to operate otherwise.
• Fees of insolvency administrators
In addition, Doing Business evaluates the quality of legal framework applicable to judicial
• Lawyers’ fees liquidation and reorganization proceedings and the extent to which best insolvency practices have
• Assessors’ and auctioneers’ fees been implemented in each economy covered.
• Other related fees
Outcome
• Whether business continues operating as a going concern or
business assets are sold piecemeal
Recovery rate for creditors
• Measures the cents on the dollar recovered by secured
creditors
• Outcome for the business (survival or not) determines the
maximum value that can be recovered
• Official costs of the insolvency proceedings are deducted
• Depreciation of furniture is taken into account
• Present value of debt recovered
Strength of insolvency framework index (0- 16)
• Sum of the scores of four component indices:
• Commencement of proceedings index (0-3)
• Management of debtor’s assets index (0-6)
• Reorganization proceedings index (0-3)
• Creditor participation index (0-4)
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Doing Business 2020 Algeria
Resolving Insolvency - Algeria
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Recovery rate (cents on the dollar) 50.8 27.3 70.2 92.9 (Norway)
Time (years) 1.3 2.7 1.7 0.4 (Ireland)
Cost (% of estate) 7.0 14.0 9.3 1.0 (Norway)
Outcome (0 as piecemeal sale and 1 as going concern) 0 .. .. ..
Strength of insolvency framework index (0-16) 7.0 6.3 11.9 None in 2018/19
Figure – Resolving Insolvency in Algeria – Score
54.7 43.8
Recovery rate Strength of insolvency framework index
Figure – Resolving Insolvency in Algeria and comparator economies – Ranking and Score
DB 2020 Resolving Insolvency Score
0 100
74.6: France (Rank: 26)
52.9: Morocco (Rank: 73)
49.2: Algeria (Rank: 81)
42.2: Egypt, Arab Rep. (Rank: 104)
34.5: Regional Average (Middle East & North Africa)
29.1: Lebanon (Rank: 151)
Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average
of the scores for the recovery rate and the strength of insolvency framework index.
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Doing Business 2020 Algeria
Figure – Resolving Insolvency in Algeria – Time and Cost
Time (years) Cost (% of estate)
4 25
22.0 3.5
Cost (% of estate)
3.5
3.0 18.0 20
Time (years)
3 2.7
2.5 15.0
2.5 14.0 15
1.9
2 1.7
9.0 9.3
1.5 1.3 10
7.0
1
5
0.5
0 0
Algeria Egypt, France Lebanon Middle Morocco OECD
Arab East high
Rep. & income
North
Africa
Page 59
Doing Business 2020 Algeria
Figure – Resolving Insolvency in Algeria and comparator economies – Measure of Quality
Algeria 2 3 1 1
Egypt, Arab Rep. 4 2.5 2 1
France 6 3 1 1
Lebanon 2 2 0
Morocco 5.5 3 2 1.5
OECD high income 5.3 2.8 2.1 1.9
Middle East & North Africa 3.7 2.3 1.3 0.6
0 2 4 6 8 10 12 14
Sub-Indicator Score
Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Figure – Resolving Insolvency in Algeria and comparator economies – Recovery Rate
Recovery rate(cents on the dollar)
80 74.8
70
60
50.8
50
40
30.8 28.7
30 27.3
23.3
20
10
0
Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & North Africa
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Doing Business 2020 Algeria
Details – Resolving Insolvency in Algeria
Indicator Answer Score
Proceeding foreclosure Mirage cannot repay the amount due to BizBank, so the bank will start foreclosure proceedings at the First Instance
Court. At the end of the procedure, the hotel building will be sold and Bizbank will be repaid.
Outcome piecemeal sale Foreclosure proceedings will lead to the sale of the building and repayment to creditors, so the hotel will no longer
exist.
Time (in years) 1.3 According to our estimations, the entire foreclosure procedure would take approximately 16 months.
Cost (% of estate) 7.0 According to our estimations, the entire foreclosure proceedings would cost approximately 7% of the value of the
estate. The following cost components are applicable: attorneys' fees (up to 5%), fees of other professionals involved
such as court bailiff (around 2%), and court fees (0,1%).
Recovery rate 50.8
(cents on the dollar)
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Doing Business 2020 Algeria
Details – Resolving Insolvency in Algeria – Measure of Quality
Answer Score
Strength of insolvency framework index (0-16) 7.0
Commencement of proceedings index (0-3) 3.0
What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for 1.0
both liquidation and
reorganization
Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor 1.0
may file for both
liquidation and
reorganization
What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) (a) Debtor is 1.0
Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value generally unable to
of its assets pay its debts as they
mature
Management of debtor's assets index (0-6) 2.0
Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the No 0.0
debtor?
Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? No 0.0
Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of No 0.0
insolvency proceedings?
Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0
assigned to post-
commencement
creditors
Reorganization proceedings index (0-3) 1.0
Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0
whose rights are
affected by the
proposed plan
Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as No 0.0
what they would obtain in a liquidation?
Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote No 0.0
separately and are creditors in the same class treated equally?
Creditor participation index (0-4) 1.0
Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency No 0.0
representative?
Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
Does the insolvency framework provide that a creditor has the right to request information from the insolvency No 0.0
representative?
Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting Yes 1.0
creditors' claims?
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
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Doing Business 2020 Algeria
Employing Workers
Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present
rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.
The most recent round of data collection was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Hiring To make the data comparable across economies, several assumptions about the worker and the
(i) whether fixed-term contracts are prohibited for permanent business are used.
tasks; (ii) maximum cumulative duration of fixed-term contracts;
(iii) length of the maximum probationary period; (iv) minimum The worker:
wage;(v) ratio of minimum wage to the average value added per - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.
worker. - Is a full-time employee.
- Is not a member of the labor union, unless membership is mandatory.
Working hours
(i) maximum number of working days allowed per week; (ii) The business:
premiums for work: at night, on a weekly rest day and overtime; - Is a limited liability company (or the equivalent in the economy).
(iii) whether there are restrictions on work at night, work on a - Operates a supermarket or grocery store in the economy’s largest business city. For 11
weekly rest day and for overtime work; (iv) length of paid annual economies the data are also collected for the second largest business city.
leave. - Has 60 employees.
- Is subject to collective bargaining agreements if such agreements cover more than 50% of the
Redundancy rules food retail sector and they apply even to firms that are not party to them.
(i) whether redundancy can be basis for terminating workers; (ii) - Abides by every law and regulation but does not grant workers more benefits than those
whether employer needs to notify and/or get approval from third mandated by law, regulation or (if applicable) collective bargaining agreements.
party to terminate 1 redundant worker and a group of 9 redundant
workers; (iii) whether the law requires employer to reassign or
retrain a worker before making worker redundant; (iv) whether
priority rules apply for redundancies and reemployment.
Redundancy cost
(i) notice period for redundancy dismissal; (ii) severance
payments, and (iii) penalties due when terminating a redundant
worker. Data on the availability of unemployment protection for a
worker with one year of employment is also collected.
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Doing Business 2020 Algeria
Employing Workers - Algeria
Details – Employing Workers in Algeria
Answer
Hiring
Fixed-term contracts prohibited for permanent tasks? Yes
Maximum length of a single fixed-term contract (months) No limit
Maximum length of fixed-term contracts, including renewals (months) No limit
Minimum wage applicable to the worker assumed in the case study (US$/month) 149.4
Ratio of minimum wage to value added per worker 0.3
Maximum length of probationary period (months) 6.0
Working hours
Standard workday 8.0
Maximum number of working days per week 6.0
Premium for night work (% of hourly pay) 0.0
Premium for work on weekly rest day (% of hourly pay) 0.0
Premium for overtime work (% of hourly pay) 50.0
Restrictions on night work? Yes
Restrictions on weekly holiday? No
Restrictions on overtime work? No
Paid annual leave for a worker with 1 year of tenure (working days) 22.0
Paid annual leave for a worker with 5 years of tenure (working days) 22.0
Paid annual leave for a worker with 10 years of tenure (working days) 22.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 22.0
Redundancy rules
Dismissal due to redundancy allowed by law? Yes
Third-party notification if one worker is dismissed? Yes
Third-party approval if one worker is dismissed? No
Third-party notification if nine workers are dismissed? Yes
Third-party approval if nine workers are dismissed? No
Retraining or reassignment obligation before redundancy? Yes
Priority rules for redundancies? Yes
Priority rules for reemployment? No
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 4.3
Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 4.3
Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 4.3
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 4.3
Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 13.0
Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 13.0
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Doing Business 2020 Algeria
Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 13.0
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 13.0
Unemployment protection after one year of employment? No
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Doing Business 2020 Algeria
Business Reforms in Algeria
From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by
Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008.
=Doing Business reform making it easier to do business. = Change making it more difficult to do business.
DB2019
Getting Electricity: Algeria made the process for getting an electricity connection easier by streamlining internal administrative processes and by granting new
licenses to vendors selling pre-built substations.
Trading across Borders: Algeria made importing easier by implementing joint inspections between control agencies.
DB2017
Starting a Business: Algeria made starting a business easier by eliminating the minimum capital requirement for business incorporation.
Dealing with Construction Permits: Algeria made dealing with construction permits indicator faster by reducing the time to obtain a construction permit.
Getting Electricity: Algeria made getting electricity more transparent by publishing electricity tariff s on the websites of the utility and the energy regulator.
Paying Taxes: Algeria made paying taxes less costly by decreasing the tax on professional activities rate. The introduction of advanced accounting systems also made
paying taxes easier.
DB2016
Starting a Business: Algeria made starting a business easier by eliminating the requirement to obtain managers’ criminal records.
Dealing with Construction Permits: Algeria made dealing with construction permits easier by eliminating the legal requirement to provide a certified copy of a property
title when applying for a building permit.
DB2015
Trading across Borders: Algeria made trading across borders easier by upgrading infrastructure at the port of Algiers.
DB2013
Getting Credit: Algeria improved access to credit information by eliminating the minimum threshold for loans to be included in the database.
DB2012
Getting Credit: Algeria improved its credit information system by guaranteeing by law the right of borrowers to inspect their personal data.
DB2010
Dealing with Construction Permits: Algeria enhanced its construction permitting process by introducing new regulations aimed at improving the administration of the
process and at ensuring the safe and timely completion of construction projects.
Registering Property: Algeria made registering property easier and less costly by reducing notary fees and eliminating the capital gains tax.
Paying Taxes: Algeria made paying taxes less costly for companies by reducing the corporate income tax rate for tourism, construction and public works, and the
production of goods.
Enforcing Contracts: Algeria improved contract enforcement by introducing a new civil procedure code that reduces the steps and time required and by fully
computerizing the courts, including by setting up an electronic case management system.
DB2008
Trading across Borders: Algeria made trading across borders more difficult by increasing the number of inspections carried out.
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Doing Business 2020 Algeria
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