Algeria Economy Profile - Doing Business 2020
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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
Page 2Doing 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
Page 3Doing 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
Page 4Doing 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.
Page 5Doing 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.
Page 6Doing 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.
Page 7Doing 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)).
Page 8Doing 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.
Page 9Doing 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.
Page 10Doing 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.
Page 11Doing 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.
Page 12Doing 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.
Page 13Doing 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 14Doing Business 2020 Algeria
Takes place simultaneously with previous procedure.
Page 15Doing 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.
Page 16Doing 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 17Doing 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 18Doing 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 19Doing 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.
Page 20Doing 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 21Doing 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 22Doing 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.
Page 23Doing 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 24Doing 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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