Algeria Economy Profile - Doing Business 2019
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Doing Business 2019 Algeria
Economy Profile
Algeria
Page 1
Doing Business 2019 Algeria
Economy Profile of Algeria
Doing Business 2019 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 post-filing 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
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 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 labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation 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 reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports 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 report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report 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.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Algeria
Ease of Doing Business in
Region Middle East & North Africa DB 2019 Rank
190 1
Algeria
Income Category Upper middle income 157
DB 2019 Ease of doing business score
Population 41,318,142
0 100
City Covered Algiers 49.65
DB 2019 Ease of Doing Business Score
0 100
77.29: France (Rank: 32)
71.02: Morocco (Rank: 60)
58.56: Egypt, Arab Rep. (Rank: 120)
58.30: Regional Average (Middle East & North Africa)
54.04: Lebanon (Rank: 142)
49.65: Algeria (Rank: 157)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Algeria
1
28
55
76
82
Rank
106
112
109
129
136
150
156
165 168
163 173
178
190
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
Ease of Doing Business Score on Doing Business topics - Algeria
100
78.07
80
69.58
63.28
Score
60 53.91 54.78
49.24
44.26
38.43
40 35.00
20
10.00
0
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
Page 4Doing Business 2019 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 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the 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 - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a also collected for the second largest business city.
business or to leave the home to register the
- The entire office space is approximately 929 square meters (10,000 square feet).
company
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card - Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits.
procedures cannot start on the same day)
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final The owners:
document is received
- Have reached the legal age of majority. If there is no legal age of majority, they are
• No prior contact with officials assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Algeria
Starting a Business - Algeria
Standardized Company
Legal form Société à Responsabilité Limitée (SARL) - Limited Liability
Company
Paid-in minimum capital requirement DZD 0
City Covered Algiers
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Procedure – Men (number) 12 7.2 4.9 1 (New Zealand)
Time – Men (days) 17.5 20.5 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 11.8 22.6 3.1 0.0 (Slovenia)
Procedure – Women (number) 12 7.9 4.9 1 (New Zealand)
Time – Women (days) 17.5 21.2 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 11.8 22.6 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 8.1 8.6 0.0 (117 Economies)
Figure – Starting a Business in Algeria and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
93.27: France (Rank: 30)
92.99: Morocco (Rank: 34)
84.11: Egypt, Arab Rep. (Rank: 109)
82.00: Regional Average (Middle East & North Africa)
78.63: Lebanon (Rank: 146)
78.07: Algeria (Rank: 150)
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 2019 Algeria
Figure – Starting a Business in Algeria – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
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 2019 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 www.cnrc.org.dz. 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’ 5 days see comments
signatures and a lease 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 Less than one day DA 3,000 per page +
Officiel des Annonces légales, BOAL) (online procedure) DA 55 for publication
Agency : Commercial Registry (Centre National du Registre du Commerce, rights
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/.
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 DA 4,000
Agency : Tax Authority and Commercial Registry (Centre National du Registre du (simultaneously with
Commerce, CNRC) previous procedure)
One must pay for the stamp duty. Fiscal stamps are sealed at the fiscal
administration. Other stamps are paid at the CNRC.
Page 8Doing Business 2019 Algeria
8 Register for Income tax, Corporate tax and VAT with the local tax 2 days no charge
inspectorate
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)).
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 1 day no charge
(CASNOS)
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 2019 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 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its topographical experts.
completion
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
- Will be used for general storage activities, such as storage of books or stationery.
information
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials documentation or getting prior approvals from external agencies, these are counted
as procedures.
Cost required to complete each procedure (% of
- Will take 30 weeks to construct (excluding all delays due to administrative and
income per capita)
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water 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
• Quality control before construction (0-1)
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - 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 2019 Algeria
Dealing with Construction Permits - Algeria
Standardized Warehouse
Estimated value of warehouse DZD 22,557,333.40
City Covered Algiers
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 19 16.6 12.7 None in 2017/18
Time (days) 136 137.4 153.1 None in 2017/18
Cost (% of warehouse value) 7.8 4.7 1.5 None in 2017/18
Building quality control index (0-15) 12.0 12.1 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Algeria and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
79.94: Morocco (Rank: 18)
79.30: France (Rank: 19)
71.77: Egypt, Arab Rep. (Rank: 68)
63.28: Algeria (Rank: 129)
59.17: Regional Average (Middle East & North Africa)
52.69: Lebanon (Rank: 170)
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.
Figure – Dealing with Construction Permits in Algeria – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
7
120
6
Cost (% of warehouse value)
100
5
Time (days)
80 4
60 3
40 2
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 11Doing Business 2019 Algeria
Figure – Dealing with Construction Permits in Algeria and comparator economies – Measure of Quality
15 14.0 14.0
13.0 13.0
12.0 12.1
Index score
10
5
0
Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & 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 20 days DZD 1,350,000
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 no charge
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 one week 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 220,603
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 12Doing Business 2019 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.
The inspection is usually done within 2 weeks of the request.
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)
Notify municipal/communal authority of connection to sewer mains 1 day DZD 15,000
16 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.
Page 13Doing Business 2019 Algeria
Obtain sewage connection 21 days DZD 13,000
18 Agency : Société des Eaux et de l'Assainissement d'Alger (SEAAL)
A site visit is sometimes required to prepare the estimate.
Obtain water connection 18 days DZD 25,000
19 Agency : Société des Eaux et de l'Assainissement d'Alger (SEAAL)
Takes place simultaneously with previous procedure.
Page 14Doing Business 2019 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; 1.0
Free of charge;
In official gazette.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any 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 Licensed 1.0
compliance with existing building regulations? (0-1) architect;
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? Inspections at 1.0
(0-2) various 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 Yes, final 2.0
with the approved plans and regulations? (0-2) inspection 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 Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible Architect or 1.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance engineer;
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 Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer.
Page 15Doing Business 2019 Algeria
What are the qualification requirements for the professional who supervises the construction University degree 0.0
on the ground? (0-2) in engineering,
construction or
construction
management.
Page 16Doing Business 2019 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 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
kilowatt (kW).
• Does not include time spent gathering
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials 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 owners’ private property
Cost required to complete each procedure (% of
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
switchboard and the meter base.
• Value added tax excluded
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours 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
• Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (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.
• Regulatory monitoring of utilities’ performance
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• 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 the ranking on the ease of
getting electricity.
Page 17Doing Business 2019 Algeria
Getting Electricity - Algeria
Standardized Connection
Price of electricity (US cents per kWh) 2.2
Name of utility SONELGAZ (via filiale Société de Distribution de l'électricité et gaz
d'Alger (SDA))
City Covered Algiers
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 5 4.7 4.5 3 (25 Economies)
Time (days) 93 72.4 77.2 18 (3 Economies)
Cost (% of income per capita) 1478.3 479.9 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 5 4.2 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Algeria and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
92.01: France (Rank: 14)
81.34: Morocco (Rank: 59)
71.41: Egypt, Arab Rep. (Rank: 96)
69.58: Algeria (Rank: 106)
69.45: Regional Average (Middle East & North Africa)
62.75: Lebanon (Rank: 124)
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.
Page 18Doing Business 2019 Algeria
Figure – Getting Electricity in Algeria – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
1000
90
80
Cost (% of income per capita)
800
70
60
Time (days)
600
50
40
400
30
20 200
10
0 0
1 2 3 4 5
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.
Figure – Getting Electricity in Algeria and comparator economies – Measure of Quality
8
8
7
7
6
Index score
5
5
4.2
4
3
3
2
1
0
0
Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & North Africa
Page 19Doing Business 2019 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 10 calendar days DZD 0
report and estimate
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 10 calendar days DZD 4,000,000
substation
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 40 calendar days DZD 2,669,188.45
supply contract
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- 8 calendar days DZD 0
on
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 2019 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) 8.2
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 Yes
supply?
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 No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.sda.dz/Fr/
?
page=article&id=165
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 2019 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 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
10 years.
• Each procedure starts on a separate day -
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
though procedures that can be fully completed
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
• Official costs only (such as administrative fees, any kind.
duties and taxes).
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• 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 2019 Algeria
Registering Property - Algeria
Indicator Algeria Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 10 5.6 4.7 1 (4 Economies)
Time (days) 55 29.7 20.1 1 (New Zealand)
Cost (% of property value) 7.1 5.7 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 7.5 14.2 23.0 None in 2017/18
Figure – Registering Property in Algeria and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
67.86: Morocco (Rank: 68)
63.33: France (Rank: 96)
62.11: Regional Average (Middle East & North Africa)
59.44: Lebanon (Rank: 105)
55.00: Egypt, Arab Rep. (Rank: 125)
44.26: 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.
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 23Doing Business 2019 Algeria
Figure – Registering Property in Algeria and comparator economies – Measure of Quality
30
25 24.0
Index score 19.5
20
16.0
15 14.2
10 9.0
7.5
5
0
Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & 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 (Cadastre Fee) + 20
Wilaya d’Alger, Agence Nationale du Cadastre) DZD (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 7 days DZD 500
(Conservation Foncière)
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 3 days DZD 240,573.33; (3%
of payment for first DZD 500,000
Agency : Notary of property value, 2%
The parties provide the notary with all the relevant documents such as the
for the next DZD
original Property title, non-encumbrance certificate, birth certificate and the
500,000, 1% for
minutes of the shareholders' meeting giving authority to the representative of the
company to buy/sell the property on their behalf. The notary takes note of the exceeding amount +
purchase price and reviews the documents. The notary then issues an order of 17% VAT is
payment to the buyer for 50% of the purchasing price (to be deposited in the applicable on the
notary’s account at the Public Revenue Office), where a corporation is involved notary fees)
(according to the Loi des Finances 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 1 day DZD 1,353,440; (6%
the Public Revenue Office (Trésor Public) of the property value
Agency : Public Revenue Office (Trésor Public) (5% registration fee +
The buyer deposits a half of the property value to the Notary's account at the
1% publication fee))
Public Revenue 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.
Page 24Doing Business 2019 Algeria
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.
7 The original deed and documents are filed by the notary at the tax authority 3 days no charge
(Service de 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 1 day no charge
Direction du 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 18 days Already counted in
10 (Conservation 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.
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