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Economy ProfileAlgeria

Economy Pro le of Algeria

Doing Business 2018 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 constructionpermits

Procedures, time and cost to complete all formalities to build a warehouse and the quality control andsafety mechanisms in the construction permitting system

Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply andthe 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 and total tax 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 frameworkfor insolvency

Labor market regulation Flexibility in employment regulation and aspects of job quality

About Doing BusinessThe Doing Business project provides objective measures of business regulations and their enforcement across 190 economies andselected 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 regulationsapplying to them through their life cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It providesquantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registeringproperty, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolvinginsolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankingsof economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking onthe 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 andover time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks forreform; and serves as a resource for academics, journalists, private sector researchers and others interested in the businessclimate of each economy.

In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erentcities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommendreforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with othercities in the economy or region and with the 190 economies that Doing Business has ranked.

The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This years report covers 11indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, exceptfor 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 secondlargest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. Theproject has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to providean objective basis for understanding and improving the regulatory environment for business around the world.

The distance to frontier (DTF) measure shows the distance of each economy to the frontier, which represents the bestperformance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economysdistance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents thefrontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting theaggregate distance to frontier scores, rounded to two decimals.

More about Doing Business (PDF, 5MB)

Ease of Doing Business inAlgeria

RegionMiddle East & NorthAfrica

Income Category Upper middle income

Population 40,606,052

GNI Per Capita (US$) 4,270

City Covered Algiers

DB2018Rank190 1

166

DB2018DistancetoFrontier(DTF)0 100

46.71

0 100

76.13:France(Rank:31)

67.91:Morocco(Rank:69)

56.72:RegionalAverage(MiddleEast&NorthAfrica)

56.22:Egypt,ArabRep.(Rank:128)

54.67:Lebanon(Rank:133)

46.71:Algeria(Rank:166)

DB 2018 Distance to Frontier (DTF)

Note: The distance to frontier (DTF) measure shows the distance of each economy to the frontier, which represents the best performance observed on each ofthe indicators across all economies in the Doing Business sample since 2005. An economys distance to frontier is re ected on a scale from 0 to 100, where 0represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.

Rankings on Doing Business topics - Algeria

Startinga

Business

Dealingwith

ConstructionPermits

GettingElectricity

RegisteringProperty

GettingCredit

ProtectingMinorityInvestors

PayingTaxes

TradingacrossBorders

EnforcingContracts

ResolvingInsolvency

1

28

55

82

109

136

163

190

Rank

145 146

120

163177

170157

181

103

71

Distance to Frontier (DTF) on Doing Business topics - Algeria

Startinga

BusinessChange:0.00

Dealingwith

ConstructionPermits

Change:-0.04

GettingElectricity

Change:-0.02

RegisteringProperty

Change:0.00

GettingCredit

Change:0.00


Change:0.00

PayingTaxes

Change:0.00


Change:0.00

EnforcingContractsChange:0.00

ResolvingInsolvencyChange:0.00

0

20

40

60

80

100

DTF

77.54

58.89 60.56

43.83

10.00

33.33

54.11

24.15

55.4949.24

Starting a BusinessThis topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sizedlimited liability company to start up and formally operate in economys largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domesticallyowned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities andemploys between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Startinga Business considers two types of local limited liability companies that are identical in all aspects, except that one company is ownedby 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scoresobtained for each of the component indicators.The latest round of data collection for the project was completed in June 2017. See the methodology for more information.

What the indicators measure

Procedures to legal ly start and operate acompany (number)

Pre-registration (for example, name verificationor reservation, notarization)

Registration in economys largest business city

Post-registration (for example, social securityregistration, company seal)

Obtaining approval from spouse to start businessor leave home to register company

Obtaining any gender-specific permission thatcan impact company registration, companyoperations and process of getting nationalidentity card

Time required to complete each procedure(calendar days)

Does not include time spent gatheringinformation

Each procedure starts on a separate day (2procedures cannot start on the same day)

Procedures fully completed online are recordedas day

Procedure is considered completed once finaldocument is received

No prior contact with officials

Cost required to complete each procedure (% ofincome per capita)

Official costs only, no bribes

No professional fees unless services required bylaw or commonly used in practice

Paid-in minimum capital (% of income per capita)

Funds deposited in a bank or with third partybefore registration or up to 3 months afterincorporation

Case study assumptions

To make the data comparable across economies, several assumptionsabout the business and the procedures are used. It is assumed that anyrequired information is readily available and that the entrepreneur will payno bribes.

The business:- Is a limited liability company (or its legal equivalent). If there is more thanone type of limited liability company in the economy, the most commonamong domestic rms is chosen. Information on the most common form isobtained from incorporation lawyers or the statistical o ce. - Operates in the economys largest business city and the entire o cespace is approximately 929 square meters (10,000 square feet). For 11economies the data are also collected for the second largest business city.- Is 100% domestically owned and has ve owners, none of whom is a legalentity; and has a start-up capital of 10 times income per capita and has aturnover of at least 100 times income per capita. - Performs general industrial or commercial activities, such as theproduction or sale of goods or services to the public. The business doesnot perform foreign trade activities and does not handle products subjectto a special tax regime, for example, liquor or tobacco. It does not useheavily polluting production processes. - Leases the commercial plant or o ces and is not a proprietor of realestate and the amount of the annual lease for the o ce space is equivalentto 1 times income per capita.- Does not qualify for investment incentives or any special bene ts. - Has at least 10 and up to 50 employees one month af ter thecommencement of operations, all of whom are domestic nationals. - Has a company deed 10 pages long.

The owners: - Have reached the legal age of majority. If there is no legal age of majority,they are assumed to be 30 years old. - Are sane, competent, in good health and have no criminal record. - Are married and the marriage is monogamous and registered with theauthorities. - Where the answer di ers according to the legal system applicable to thewoman or man in question (as may be the case in economies where thereis legal plurality), the answer used will be the one that applies to themajority of the population.

Standardized Company

Legal form Socit Responsabilit Limite (SARL) - Limited Liability Company

Paid-in minimum capital requirement DZD 0


Indicator AlgeriaMiddle East &North Africa

OECD highincome Overall Best Performer

Procedure Men (number) 12 7.7 4.9 1.00 (New Zealand)

Time Men (days) 20 18.6 8.5 0.50 (New Zealand)

Cost Men (% of income per capita) 11.1 18.7 3.1 0.00 (United Kingdom)

Procedure Women (number) 12 8.4 4.9 1.00 (New Zealand)

Time Women (days) 20 19.3 8.5 0.50 (New Zealand)

Cost Women (% of income per capita) 11.1 18.7 3.1 0.00 (United Kingdom)

Paid-in min. capital (% of income per capita) 0.0 9.9 8.7 0.00 (113 Economies)

FigureStartingaBusinessinAlgeriaandcomparatoreconomiesRankingandDTF


0 100

93.28: France (Rank: 25)

92.46: Morocco (Rank: 35)

84.53: Egypt, Arab Rep. (Rank: 103)

82.05: Regional Average (Middle East & North Africa)

78.17: Lebanon (Rank: 143)

77.54: Algeria (Rank: 145)

Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores forstarting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureStartingaBusinessinAlgeriaProcedure,TimeandCost

Procedures (number)

1 2 3 4 5 6 * 7 8 9 10 11 120

5

10

15

20

Time (days)

0

1

2

3

4

5

6

Cost (%

of incom

e per capita)

Time(days) Cost(%ofincomepercapita)

* 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 di erent procedure list formen and women, the graph shows the time for women. For more information on methodology, see the Doing Business website(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

DetailsStartingaBusinessinAlgeriaProcedure,TimeandCost

Applies to women only.

Takes place simultaneously with previous procedure.

No. Procedures Time to Complete Associated Costs

1 Obtain an attestation of the uniqueness of the selected company namefrom the Commercial Registry and pick up registration forms

Agency : Commercial Registry (Centre National du Registre du Commerce,CNRC)

The applicant must ll out a form, listing the four proposed company names,and pay a fee for the name search and the scal stamp. The CommercialRegistry (Centre National du Registre du Commerce, CNRC) conducts a namesearch and issues a name certi cate on the same day.

Since February 2015, the uniqueness of the company name can be checkedonline thought the portal www.cnrc.org.dz. Although the search and thereservation can be done online, business founders typically conduct thesetasks in-person at the CNRC.

1 day DA 576

2 Deposit the start-up capital with the notary public

Agency : Bank

The entrepreneur deposits the capital in the public treasury and obtains adeposit certi cate before drawing up the statues.

1 day no charge

3 Obtain the birth certi cate of the manager

Agency : Municipality

A copy of the business manager's birth certi cate is required fornotarization. It can be obtained at the Municipality.

1 day no charge

4 Draw up and notarize the company's constitution documents, submit aspecimen of managers signatures, and prepare and submit the lease forthe registered o ce of the company

Agency : Notary O ce

Business founders must complete the following procedures with a notary:draw up and notarize the company's constitution documents, submit aspecimen of managers signatures, and prepare and submit the lease for theregistered o ce 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.

7 days see comments

5 Publish the company constitution in the legal journal (Bulletin O cieldes Annonces lgales, BOAL)


A notice of company incorporation must be published at the O cial Bulletinof Legal Announcements (BOAL).

1 day DA 48 per line(assuming 20 lines)

6 File for company registration with the Commercial Registry


Entrepreneurs must register the company before the Commercial Registry.This must be done within two months of the formation of the company.

According to Law No. 04-08 (April 14, 2004), registration is completed within 1day. However, in practice, it still takes 2 days to obtain the nal registrationcerti cate.

Registration fees (Arrt du 10 juillet 2004 portant rvision des tarifsapplicables par le centre national du registre de commerce au titre de latenue des registres de commerce et des publicits lgales) are as follows: - DA 9,120 if the company capital is between DA 30,001 and DA 100,000- DA 9,520 if the company capital is between DA 100,001 and DA 300,000- DA 9,760 if the company capital is more than DA 300,000

2 days see comments

7 Pay for the stamp duty and obtain a receipt

Agency : Tax Authority and Commercial Registry (Centre National du Registredu Commerce, CNRC)

One must pay for the stamp duty. Fiscal stamps are sealed at the scaladministration. Other stamps are paid at the CNRC.

1 day(simultaneouslywith previousprocedure)

DA 4,000

8 Register for Income tax, Corporate tax and VAT with the local taxinspectorate

Agency : Tax Authority

The entrepreneur must register for Income tax (Impt sur le revenu globaldes personnes physiques, IRG), Corporate tax (Impt sur les bn ces despersonnes morales ou des socits, IBS), and VAT.

Upon registration, the Tax Authority shall issue a certi cate of existencebetween 2 and 5 days and a tax card (magnetic card) within a minimumperiod of 30 days (loi n 05-16 du 31 dcembre 2005 portant loi de nancespour 2006 (JO n 85 du 31 dcembre 2005)).

2 days no charge

9 Register at the National Health Insurance Authority (CNAS)

Agency : National Health Insurance Authority (Caisse Nationale desAssurances Sociales des Travailleurs Salaris, CNAS)

Employees must be registered by the new company before the CaisseNationale des Assurances Sociales des Travailleurs Salaris (CNAS), whichreceives employee declarations.The employer must report any new employee to the relevant authoritywithin 10 days of hiring.

1 day no charge

10 Register at the National Non-Salary Workers' Social Security Fund(CASNOS)

Agency : National Non-Salary Workers' Social Security Fund (Caisse Nationalede Scurit Sociale des Non Salaris, CASNOS)

Business founders must register before the Caisse Nationale de ScuritSociale des Non Salaris (CASNOS), which receives and register employerdeclarations.

1 day no charge

11 Make a company seal

Agency : Private sector

A company seal must be obtained. The cost of obtaining a company sealdepends on the type of seal, its quality and the price established by theprivate seal maker.

2 days DA 1,800

12 Have the companys accounting books stamped at the court

Agency : Court

The accounting and inventory books must be stamped when the companystarts its business activity.

1 day DA 8,000

Dealing with Construction PermitsThis topic tracks the procedures, time and cost to build a warehouseincluding obtaining necessary the licenses and permits,submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. Inaddition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality ofbuilding regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professionalcerti cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for moreinformation


Procedures to legally build a warehouse (number)

Submitting all relevant documents and obtainingall necessary clearances, licenses, permits andcertificates

Submitting all required notifications andreceiving all necessary inspections

Obtaining utility connections for water andsewerage

Registering and selling the warehouse after itscompletion



Each procedure starts on a separate daythough procedures that can be fully completedonline are an exception to this rule



Cost required to complete each procedure (% ofwarehouse value)


Building quality control index (0-15)

Sum of the scores of six component indices:

Quality of building regulations (0-2)

Quality control before construction (0-1)

Quality control during construction (0-3)

Quality control after construction (0-3)

Liability and insurance regimes (0-2)

Professional certifications (0-4)


To make the data comparable across economies, several assumptionsabout the construction company, the warehouse project and the utilityconnections are used.

The construction company (BuildCo):- Is a limited liability company (or its legal equivalent) and operates in theeconomys largest business city. For 11 economies the data are alsocollected for the second largest business city. - Is 100% domestically and privately owned; has ve owners, none of whomis a legal entity. Has a licensed architect and a licensed engineer, bothregistered with the local association of architects or engineers. BuildCo isnot assumed to have any other employees who are technical or licensedexperts, such as geological or topographical experts. - Owns the land on which the warehouse will be built and will sell thewarehouse upon its completion.

The warehouse: - Will be used for general storage activities, such as storage of books orstationery. - Will have two stories, both above ground, with a total constructed area ofapproximately 1,300.6 square meters (14,000 square feet). Each oor willbe 3 meters (9 feet, 10 inches) high and will be located on a land plot ofapproximately 929 square meters (10,000 square feet) that is 100% ownedby BuildCo, and the warehouse is valued at 50 times income per capita. - Will have complete architectural and technical plans prepared by alicensed architect. If preparation of the plans requires such steps asobtaining further documentation or getting prior approvals from externalagencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrativeand regulatory requirements).

The water and sewerage connections: - Will be 150 meters (492 feet) from the existing water source and sewertap. If there is no water delivery infrastructure in the economy, a boreholewill be dug. If there is no sewerage infrastructure, a septic tank in thesmallest size available will be installed or built. - Will have an average water use of 662 liters (175 gallons) a day and anaverage wastewater ow of 568 liters (150 gallons) a day. Will have a peakwater use of 1,325 liters (350 gallons) a day and a peak wastewater ow of1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater owthroughout the year; will be 1 inch in diameter for the water connectionand 4 inches in diameter for the sewerage connection.

Standardized Warehouse

Estimated value of warehouse DZD 20,535,314.00




Procedures (number) 19 16.2 12.5 7.00 (Denmark)

Time (days) 146 132.1 154.6 27.5 (Korea, Rep.)

Cost (% of warehouse value) 8.1 4.3 1.6 0.10 (5 Economies)

Building quality control index (0-15) 10.0 11.8 11.4 15.00 (3 Economies)

FigureDealingwithConstructionPermitsinAlgeriaandcomparatoreconomiesRankingandDTF


0 100







Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontierscores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of thecomponent indicators.

FigureDealingwithConstructionPermitsinAlgeriaProcedure,TimeandCost

Procedures (number)

1 * 2 * 3 4 5 6 7 8 9 10 11 12 13 14 * 15 * 16 * 17 * 18 * 190

20

40

60

80

100

120

140

Time (days)

0

1

2

3

4

5

6

7

Cost (%

of w

arehouse value)

Time(days) Cost(%ofwarehousevalue)



FigureDealingwithConstructionPermitsinAlgeriaandcomparatoreconomiesMeasureofQuality

Algeria Egypt, Arab Rep. France Lebanon Morocco Middle East & North Africa

0

2

4

6

8

10

12

14

16

Index score 10.0

14.0 14.013.0 13.0

11.8

DetailsDealingwithConstructionPermitsinAlgeriaProcedure,TimeandCost



1 Obtain a geotechnical study/soil test

Agency : Private rm

A geotechnical study (soil test) is needed by the engineer to establish theway the foundations of the building will be set. The cost will depend on thenature of the soil and the number of pits needed.

30 days DZD 1,350,000

2 Obtain an urban certi cate

Agency : Municipal Authority (Autorit Municipale)

An urban certi cate is not a legal requirement to obtain a constructionpermit. However, in practice it is required by the architect so that the plansare drawn according to the speci cities of this plot of land.

The owner will make the request to obtain the urban certi cate for this plotof land and will receive it in about one week by mail.

14 days no charge

3 Obtain a topographical survey

Agency : Private Firm

A topographical survey has always been a requirement to establish thebuilding plans.

7 days DZD 125,000

4 Obtain building permit


The complete application is submitted in 5 copies to the AssemblePopulaire Communal (APC) at the city level. The application is rst approvedby the city and then transmitted to the DUCH at the Wilaya level.

The DUCH (direction de lurbanisme de la construction et de lhabitat) at theWilaya (county) level centralizes all building permit requests submitted at thecity level and issues a technical opinion (avis technique) after consultationwith other technical government agencies: SONELGAZ, forests, civilprotection, health, environment, etc. (exact list depends on the type ofproject).

The documents required are: Acte de proprit (property deed) Plans of the project prepared by a certi ed architect and certi ed engineerfor the gnie civil section. Drawings of the structure Extrait cadastral (or plan du lotissement where applicable). Extrait cadastralin Rouiba Preliminary agreement from utility companies. Authorization for temporaryconnection during the construction Dessins du systeme degout

Construction permits are valid 3 years. If the construction has not been builtwithin this time frame, the builder must apply for a new one.

60 days DZD 126,964

5 Inform Municipality of commencement of work


It is mandatory to inform the Municipality of the commencement of work aswell as of the expected date of completion.

1 day no charge

6 Receive inspection for the rst earthworks

Agency : Controle Tecnique de la Construction

The Technical Agency, an independent technical agency, veri es every majorstep of advancement of the structure (rceptionne ou vise): there are onaverage 5 to 8 inspections per construction.

They control the structure and safety issues. They inspect at each key stageof the construction: Veri cation 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 agencyconducts an inspection.

1 day no charge

7 Receive excavation inspection


1 day no charge

8 Receive foundation inspection


1 day no charge

9 Receive concrete pouring inspection


1 day no charge

10 Receive second concrete pouring inspection


1 day no charge

11 Notify Municipality of completion of construction

Agency : Contrle Technique de la Construction

BuildCo inform the Municipality of the end of construction

1 day no charge

12 Request and receive nal inspection to obtain certi cate of conformity


When the warehouse is completed, BuildCo must notify the municipality sothat it can make a nal 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 theCPAA to BuildCo A written report (Proces Verbal) will be established by a committeecomprising of all the relevant departments, including the re department atthe end of the inspection.

The inspection is usually done within 2 weeks of the request.

1 day no charge

13 Obtain certi cate of conformity

Agency : Sous direction de l'urbanisme de la Commune

Although the law requires a certi cate of conformity, it is seldom issued inpractice.

23 days DZD 9,500

14 Register the building at the Cadastre


Before the building can be used as collateral, banks require the property titleand the construction license. This case study assumes that BuildCo alreadypossesses a construction license.

1 day no charge

15Apply for water and sewage connection

Agency : Socit des Eaux et de l'Assainissement d'Alger (SEAAL)

1 day no charge

16Notify municipal/communal authority of connection to sewer mains

Agency : Municipal/communal authority (Autorit municipale/communale)

When the application for a building permit is submitted, there is a set ofplans for utilities which are sent to utility companies for veri cation. If theutility companies do not approve these plans, the building permit will bedelayed until all plans are corrected.

1 day DZD 15,000

17Obtain inspection for water connection cost estimate


The Customer Service department will send a team to do a technical and nancial study of the work to be done. The cost estimate is given to the clientand payment must be made before the work is done.

1 day no charge

18Obtain sewage connection


A site visit is sometimes required to prepare the estimate.

21 days DZD 13,000

19Obtain water connection


18 days DZD 25,000

DetailsDealingwithConstructionPermitsinAlgeriaMeasureofQuality

Answer Score

Building quality control index (0-15) 10.0

Quality of building regulations index (0-2) 2.0

How accessible are building laws and regulations in your economy? (0-1) Available online;Free of charge; Ino cial gazette.

1.0

Which requirements for obtaining a building permit are clearly speci ed in the buildingregulations or on any accessible website, brochure or pamphlet? (0-1)

List of requireddocuments; Feesto be paid;Requiredpreapprovals.

1.0

Quality control before construction index (0-1) 1.0

Which third-party entities are required by law to verify that the building plans are incompliance with existing building regulations? (0-1)

Licensedarchitect;Licensedengineer.

1.0

Quality control during construction index (0-3) 2.0

What types of inspections (if any) are required by law to be carried out duringconstruction? (0-2)

Inspections atvarious phases.

1.0

Do legally mandated inspections occur in practice during construction? (0-1) Mandatoryinspections arealways done inpractice;Inspections arenot mandated bylaw butcommonly occurin practiceduringconstruction.

1.0

Quality control after construction index (0-3) 3.0

Is there a nal inspection required by law to verify that the building was built inaccordance with the approved plans and regulations? (0-2)

Yes, nalinspection isdone bygovernmentagency.

2.0

Do legally mandated nal inspections occur in practice? (0-1) Final inspectionalways occurs inpractice.

1.0

Liability and insurance regimes index (0-2) 2.0

Which parties (if any) are held liable by law for structural aws or problems in thebuilding once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)

Architect orengineer;Constructioncompany.

1.0

Which parties (if any) are required by law to obtain an insurance policy to coverpossible structural aws or problems in the building once it is in use (Latent DefectLiability Insurance or Decennial Insurance)? (0-1)

Architect orengineer;Constructioncompany.

1.0

Professional certi cations index (0-4) 0.0

What are the quali cation requirements for the professional responsible for verifyingthat the architectural plans or drawings are in compliance with existing buildingregulations? (0-2)

Universitydegree inarchitecture orengineering.

0.0

What are the quali cation requirements for the professional who supervises theconstruction on the ground? (0-2)

Universitydegree inengineering,construction orconstructionmanagement.

0.0

Getting ElectricityThis topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newlyconstructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply,transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June2017. See the methodology for more information.


Procedures to obtain an electricity connection(number)

Submitting all relevant documents and obtainingall necessary clearances and permits

Completing all required notifications andreceiving all necessary inspections

Obtaining external installation works and possiblypurchasing material for these works

Concluding any necessary supply contract andobtaining final supply


Is at least 1 calendar day

Each procedure starts on a separate day


Reflects the time spent in practice, with littlefollow-up and no prior contact with officials



Value added tax excluded

The reliability of supply and transparency oftari s index (0-8)

Duration and frequency of power outages (03)

Tools to monitor power outages (01)

Tools to restore power supply (01)

Regulatory monitoring of utilities performance(01)

Financial deterrents limiting outages (01)

Transparency and accessibility of tariffs (01)

Price of electricity (cents per kilowatt-hour)*

Price based on monthly bill for commercialwarehouse in case study

*Note: Doing Business measures the pr ice ofelectricity, but it is not included in the distance tofrontier score nor the ranking on the ease of gettingelectricity.


To make the data comparable across economies, several assumptions areused.

The warehouse: - Is owned by a local entrepreneur and is used for storage of goods.- Is located in the economys largest business city. For 11 economies thedata are also collected for the second largest business city. - Is located in an area where similar warehouses are typically located and isin an area with no physical constraints. For example, the property is notnear a railway. - Is a new construction and is being connected to electricity for the rsttime. - Has two stories with a total surface area of approximately 1,300.6 squaremeters (14,000 square feet). The plot of land on which it is built is 929square meters (10,000 square feet).

The electricity connection:- Is a permanent one with a three-phase, four-wire Y connection with asubscribed capacity of 140-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- ormedium-voltage distr ibution network and is either overhead orunderground, whichever is more common in the area where thewarehouse 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 outon public land. There is no crossing of other owners private propertybecause the warehouse has access to a road. - Does not require work to install the internal wiring of the warehouse. Thishas already been completed up to and including the customers servicepanel or switchboard and the meter base.

The monthly consumption:- It is assumed that the warehouse operates 30 days a month from 9:00a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacityon average and that there are no electricity cuts (assumed for simplicityreasons) and the monthly energy consumption is 26,880 kilowatt-hours(kWh); hourly consumption is 112 kWh. - If multiple electricity suppliers exist, the warehouse is served by thecheapest supplier. - Tari s e ective in March of the current year are used for calculation ofthe price of electricity for the warehouse. Although March has 31 days, forcalculation purposes only 30 days are used.

Standardized Connection

Price of electricity (US cents per kWh) 2.6

Name of utility SONELGAZ (via filiale Socit de Distribution de l'lectricit et gaz d'Alger (SDA))




Procedures (number) 5 4.8 4.7 2 (United ArabEmirates)

Time (days) 180 81.4 79.1 10 (United ArabEmirates)

Cost (% of income per capita) 1335.3 780.3 63.0 0.00 (Japan)

Reliability of supply and transparency of tariffindex (0-8)

5 4.2 7.4 8.00 (28 Economies)

FigureGettingElectricityinAlgeriaandcomparatoreconomiesRankingandDTF


0 100







Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores forgetting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureGettingElectricityinAlgeriaProcedure,TimeandCost

Procedures (number)

1 * 2 3 4 50

20

40

60

80

100

120

140

160

180

Time (days)

0

100

200

300

400

500

600

700

800

Cost (%

of incom

e per capita)




FigureGettingElectricityinAlgeriaandcomparatoreconomiesMeasureofQuality


0

1

2

3

4

5

6

7

8

9

Index score

5

3

8

0

6

4.2

DetailsGettingElectricityinAlgeriaProcedure,TimeandCost



1 Submit application to SDA (subsidiary of SONELGAZ), receive a technicalreport and an estimate of connection fees

Agency : SONELGAZ (via its subsidiary "Socit de Distribution de l'lectricitet gaz d'Alger (SDA)")

The paper version of the application must be submitted and at no cost. Theapplication form must be submitted with the following certi ed 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 signsthe contract and reviews the estimate after receiving the plan of works fromSocit de Distribution de l'lectricit et gaz d'Alger (SDA).

Once the contract is signed and paid, Socit de Distribution de l'lectricitet gaz d'Alger (SDA) sends the request for authorization of excavation to thePublic Works department of the Municipality (Direction des Travaux Publics(DTP)). The utility obtains the excavation permit from the Direction desTravaux Publics on the customer's behalf.

60 calendar days DZD 0

2 Obtain the external site inspection by the utility to receive the technicalreport and estimate


The Socit de Distribution de l'lectricit et gaz d'Alger (SDA) conducts anexternal inspection of the location of the warehouse after submission of theapplication. A representative of the applicant is usually present during thevisit. SDA then drafts a technical study and provides an estimate of the costs.


3 Purchase electrical equipment, including the transformer, and buildsubstation

Agency : Client's electrical contractor

The client has to install a 150 kVA transformer. The transformer has to bepreapproved by Sonelgaz ("homologu"). Limited inventory has led a lot ofentrepreneurs to purchase transformers internationally and import thematerial, increasing the lead time.

60 calendar days DZD 2,815,000

4 Await the external works and meter installation by the utility and signsupply contract


Once the transformer is installed, Socit de Distribution de l'lectricit etgaz d'Alger (SDA) starts the external works as well as installing the meter. Theclient must sign a supply contract and pay a deposit equivalent to onemonth of consumption by check or bank transfer. This deposit is reimbursedto the client at the expiration of the contract.

52 calendar days DZD 2,669,188.45

5 Obtain internal wiring inspection by the utility followed by electricityturn-on


The client is responsible for the internal wiring and the technical departmentof Socit de Distribution de l'lectricit et gaz d'Alger (SDA) must approvethe nal installation before electricity starts owing.


DetailsGettingElectricityinAlgeriaMeasureofQuality

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparencyof tari 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.

Answer

Reliability of supply and transparency of tari index (0-8) 5

Total duration and frequency of outages per customer a year (0-3) 1

System average interruption duration index (SAIDI) 5.2

System average interruption frequency index (SAIFI) 9.5

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 regulatorthat is, an entity separate from the utilitymonitor the utilitys performance onreliability of supply?

Yes

Financial deterrents aimed at limiting outages (0-1) 0

Does the utility either pay compensation to customers or face nes by the regulator (or both) if outagesexceed a certain cap?

No

Communication of tari s and tari changes (0-1) 1

Are e ective tari s available online? Yes

Link to the website, if available online http://www.sda.dz/Fr/?page=article&id=165

Are customers noti ed of a change in tari ahead of the billing cycle? Yes

Registering PropertyThis topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur whowants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures thequality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability ofinfrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. Themost recent round of data collection for the project was completed in June 2017. See the methodology for more information.


Procedures to legally transfer title on immovableproperty (number)

Preregistration procedures (for example,checking for liens, notarizing sales agreement,paying property transfer taxes)

Registration procedures in the economy's largestbusiness citya.

Postregistration procedures (for example, fillingtitle with municipality)



Each procedure starts on a separate day - thoughprocedures that can be fully completed onlineare an exception to this rule



Cost required to complete each procedure (% ofproperty value)

Official costs only (such as administrative fees,duties and taxes).

Value Added Tax, Capital Gains Tax and illicitpayments are excluded

Quality of land administration index (0-30)

Reliability of infrastructure index (0-8)

Transparency of information index (06)

Geographic coverage index (08)

Land dispute resolution index (08)

Equal access to property rights index (-20)


To make the data comparable across economies, several assumptionsabout the parties to the transaction, the property and the procedures areused.

The parties (buyer and seller):- Are limited liability companies (or the legal equivalent).- Are located in the periurban area of the economys largest business city.For 11 economies the data are also collected for the second largestbusiness city.- Are 100% domestically and privately owned.- Have 50 employees each, all of whom are nationals.- Perform general commercial activities.

The property (fully owned by the seller):- Has a value of 50 times income per capita, which equals the sale price.- Is fully owned by the seller.- Has no mortgages attached and has been under the same ownership forthe past 10 years.- Is registered in the land registry or cadastre, or both, and is free of titledisputes.- 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 square feet). A two-story warehouse of 929 square meters (10,000square feet) is located on the land. The warehouse is 10 years old, is ingood condition, has no heating system and complies with all safetystandards, building codes and legal requirements. The property,consisting of land and building, will be transferred in its entirety. - Will not be subject to renovations or additional construction following thepurchase.- Has no trees, natural water sources, natural reserves or historicalmonuments of any kind.- Will not be used for special purposes, and no special permits, such as forresidential use, industrial plants, waste storage or certain types ofagricultural activities, are required.- Has no occupants, and no other party holds a legal interest in it.

Standard Property Transfer

Property value DZD 20,535,314.00




Procedures (number) 10 5.7 4.6 1.00 (4 Economies)

Time (days) 55 30.3 22.3 1.00 (3 Economies)

Cost (% of property value) 7.1 6.0 4.2 0.00 (5 Economies)

Quality of the land administration index (0-30) 7.0 13.4 22.7 29.00 (Singapore)

FigureRegisteringPropertyinAlgeriaandcomparatoreconomiesRankingandDTF


0 100







Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores forregistering property. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureRegisteringPropertyinAlgeriaProcedure,TimeandCost

Procedures (number)

1 * 2 3 4 5 6 7 8 9 * 100

10

20

30

40

50

Time (days)

0

1

2

3

4

5

6

7

Cost (%

of property value)

Time(days) Cost(%ofpropertyvalue)



FigureRegisteringPropertyinAlgeriaandcomparatoreconomiesMeasureofQuality


0

5

10

15

20

25

30

Index score

7.0 7.0

24.0

16.0 15.513.4

DetailsRegisteringPropertyinAlgeriaProcedure,TimeandCost



1 Obtain a cadastral document identifying the parcel and its owner

Agency : Agence Nationale du Cadastre

The notary obtains a PR4 bis extract from the Cadastre, stating the parcelnumber and the owner's name.

15 days(simultaneous withprocedure 2)

34 DZD (CadastreFee) + 20 DZD (Stampfee)

2 Obtain a certi cate of non-encumbrances from the Land Registry(Conservation Foncire)

Agency : Land Registry (Conservation Foncire)

The notary obtains a non-encumbrance certi cate from the Land Registry(Conservation Foncire). The cost is published in Arrt 25/05/2009 (O cialGazette no. 40/2009).

The seller provides the original title (livre foncier) to the Notary in order toprepare the sale and purchase agreement.

7 days(simultaneous withprocedure 1)

DZD 500 for the non-encumbrancecertificate

3 Parties provide the relevant documents at the notary and obtain theorder of payment

Agency : Notary

The parties provide the notary with all the relevant documents such as theoriginal Property title, non-encumbrance certi cate, birth certi cate and theminutes of the shareholders' meeting giving authority to the representativeof the company to buy/sell the property on their behalf. The notary takesnote of the purchase price and reviews the documents. The notary thenissues an order of payment to the buyer for 20% of the purchasing price (tobe deposited in the notarys account at the Public Revenue O ce), where acorporation is involved (according to Article 12 of the Loi des Finances de2014). 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 (O cial Gazette no.45/2008)

Publication fee (taxe de publicit foncire): 1% of property value

3 days 3% for first DZD500,000 of propertyvalue, 2% for thenext DZD 500,000,1% for exceedingamount + 17% VAT isapplicable on thenotary fees

4 The buyer pays registration and publication fees into notarys accountat the Public Revenue O ce (Trsor Public)

Agency : Public Revenue O ce (Trsor Public)

The buyer deposits a fth of the property value to the Notary's account atthe Public Revenue O ce.

1 day 6% of the propertyvalue (5%registration fee + 1%publication fee)

5 Parties sign the contract at the public notary

Agency : Notary

After the deposit, the buyer provides the notary with the receipt. The notarythen drafts the contract, which is signed by both parties, and issues aprovisional copy of the sale agreement to the seller and a copy of purchaseagreement to the buyer. The notary then continues with the registration ofthe transfer deed.

1 day no cost

6 The notary pays registration fees to the local tax authorities (Recette desImpts)

Agency : Local tax authorities (Recette des Impts)

The notary issues a payment of 5% of the purchase value for the registrationfees to the local tax authorities. Subsequently, the tax authorities will check ifthere are outstanding taxes. After the review is over, the tax authorities issuean original deed (minute de lacte) to the notary for his records only. The"minute" is the original received by the notary. The notary must keep it andcannot make it public.

1 day Already counted inProcedure 4

7 The original deed and documents are led by the notary at the Registryof Deeds (Service de lEnregistrement et du Timbre)

Agency : Registry of Deeds (Service de lEnregistrement et du Timbre)

The original deed signed by both parties and all relevant documents are ledin by the notary, at the tax authority (Service de l'enregistrement et dutimbre).

3 days no cost

8 File tax declaration and proof of payment at the local tax o ce (SousDirection du Recouvrement des Impts)

Agency : Local tax o ce (Sous Direction du Recouvrement des Impts)

The Notary les the tax declaration and proof of payment at the local taxo ce (Sous Direction du recrouvement des Impts), within ten days fromthe date that the contract is signed, and a receipt will be issued. This receiptis important as it will allow the notary to collect the reimbursement of 50% ofthe amount deposited in his account.

1 day no cost

9 Notary returns deposit to seller

Agency : Notary

After 30 days, and if there are no objections by the tax o ce, the notarydelivers 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 thedeposit.

30 days (time limit)(simultaneous withfollowingProcedures)

no cost

10The notary issues payment for publication fee to the Local Land Registry(Conservation Foncire) for publication and issuance of the new deed

Agency : Local Land Registry (Conservation Foncire)

The notary issues a payment by check for the publication fee of 1% of thepurchase value (part of 6% deposited by the seller) accompanied by a copyof the deed. The Land Registry then issues the updated property title (livrefoncier) to the notary.

15-20 days Already counted inProcedure 4

DetailsRegisteringPropertyinAlgeriaMeasureofQuality

Answer Score

Quality of the land administration index (0-30) 7.0

Reliability of infrastructure index (0-8) 1.0

What is the institution in charge of immovable property registration? ConservationFoncire -DirectionGnrale duDomaineNational

In what format are the majority of title or deed records kept in the largest business cityin a paper format or in a computerized format (scanned or fully digital)?

Paper 0.0

Is there an electronic database for checking for encumbrances (liens, mortgages,restrictions and the like)?

No 0.0

Institution in charge of the plans showing legal boundaries in the largest business city: AgenceNationale duCadastre

In what format are the majority of maps of land plots kept in the largest business cityin a paper format or in a computerized format (scanned or fully digital)?

Paper 0.0

Is there an electronic database for recording boundaries, checking plans and providingcadastral information (geographic information system)?

No 0.0

Is the information recorded by the immovable property registration agency and thecadastral or mapping agency kept in a single database, in di erent but linked databasesor in separate databases?

Separatedatabases

0.0

Do the immovable property registration agency and cadastral or mapping agency usethe same identi cation number for properties?

Yes 1.0

Transparency of information index (06) 1.0

Who is able to obtain information on land ownership at the agency in charge ofimmovable property registration in the largest business city?

Onlyintermediariesand interestedparties

0.0

Is the list of documents that are required to complete any type of property transactionmade publicly availableand if so, how?

Yes, on publicboards

0.5

Link for online access:

Is the applicable fee schedule for any property transaction at the agency in charge ofimmovable property registration in the largest business city made publicly availableand if so, how?

Yes, on publicboards

0.5


Does the agency in charge of immovable property registration commit to delivering alegally binding document that proves property ownership within a speci c time frameand if so, how does it communicate the service standard?

No 0.0


Is there a speci c and separate mechanism for ling complaints about a problem thatoccurred at the agency in charge of immovable property registration?

No 0.0

Contact information:

Are there publicly available o cial statistics tracking the number of transactions at theimmovable property registration agency?

No 0.0

Number of property transfers in the largest business city in 2016:

Who is able to consult maps of land plots in the largest business city? Onlyintermediariesand interestedparties

0.0

Is the applicable fee schedule for accessing maps of land plots made publicly availableand if so, how?

Yes, in person 0.0


Does the cadastral or mapping agency commit to delivering an updated map within aspeci c time frameand if so, how does it communicate the service standard?

No 0.0


http://dbuat.financeandprivatesector.org/~/media/WBG/DoingBusiness/Documents/Profiles/Country/DZA.pdfhttp://dbuat.financeandprivatesector.org/data/exploreeconomies/profile/~/media/AF824138BBBF4853B9C8C237C3D99FF9.ashxhttp://dbuat.financeandprivatesector.org/reforms/overview/economy/%7BcountryUrlName%7Dhttp://dbuat.financeandprivatesector.org/data/exploreeconomies/profile/~/media/WBG/DoingBusiness/Documents/Methodology/LMR/LMR-2018DB-service-sector-data-points-and-details.xlsxhttp://dbuat.financeandprivatesector.org/methodology/LMR-why-it-mattershttp://dbuat.financeandprivatesector.org/About-Us/FAQ#EWI

Economy ProfileAlgeria

Economy Pro le of Algeria

Doing Business 2018 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 constructionpermits

Procedures, time and cost to complete all formalities to build a warehouse and the quality control andsafety mechanisms in the construction permitting system

Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply andthe 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 and total tax 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 frameworkfor insolvency

Labor market regulation Flexibility in employment regulation and aspects of job quality

About Doing BusinessThe Doing Business project provides objective measures of business regulations and their enforcement across 190 economies andselected 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 regulationsapplying to them through their life cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It providesquantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registeringproperty, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolvinginsolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankingsof economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking onthe 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 andover time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks forreform; and serves as a resource for academics, journalists, private sector researchers and others interested in the businessclimate of each economy.

In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erentcities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommendreforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with othercities in the economy or region and with the 190 economies that Doing Business has ranked.

The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This years report covers 11indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, exceptfor 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 secondlargest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. Theproject has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to providean objective basis for understanding and improving the regulatory environment for business around the world.

The distance to frontier (DTF) measure shows the distance of each economy to the frontier, which represents the bestperformance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economysdistance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents thefrontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting theaggregate distance to frontier scores, rounded to two decimals.

More about Doing Business (PDF, 5MB)

Ease of Doing Business inAlgeria

RegionMiddle East & NorthAfrica

Income Category Upper middle income

Population 40,606,052

GNI Per Capita (US$) 4,270


DB2018Rank190 1

166

DB2018DistancetoFrontier(DTF)0 100

46.71

0 100

76.13:France(Rank:31)

67.91:Morocco(Rank:69)

56.72:RegionalAverage(MiddleEast&NorthAfrica)

56.22:Egypt,ArabRep.(Rank:128)

54.67:Lebanon(Rank:133)

46.71:Algeria(Rank:166)


Note: The distance to frontier (DTF) measure shows the distance of each economy to the frontier, which represents the best performance observed on each ofthe indicators across all economies in the Doing Business sample since 2005. An economys distance to frontier is re ected on a scale from 0 to 100, where 0represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.

Rankings on Doing Business topics - Algeria

Startinga

Business

Dealingwith

ConstructionPermits

GettingElectricity

RegisteringProperty

GettingCredit


PayingTaxes


EnforcingContracts

ResolvingInsolvency

1

28

55

82

109

136

163

190

Rank

145 146

120

163177

170157

181

103

71

Distance to Frontier (DTF) on Doing Business topics - Algeria

Startinga

BusinessChange:0.00

Dealingwith

ConstructionPermits

Change:-0.04

GettingElectricity

Change:-0.02

RegisteringProperty

Change:0.00

GettingCredit

Change:0.00


Change:0.00

PayingTaxes

Change:0.00


Change:0.00

EnforcingContractsChange:0.00

ResolvingInsolvencyChange:0.00

0

20

40

60

80

100

DTF

77.54

58.89 60.56

43.83

10.00

33.33

54.11

24.15

55.4949.24

Starting a BusinessThis topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sizedlimited liability company to start up and formally operate in economys largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domesticallyowned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities andemploys between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Startinga Business considers two types of local limited liability companies that are identical in all aspects, except that one company is ownedby 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scoresobtained for each of the component indicators.The latest round of data collection for the project was completed in June 2017. See the methodology for more information.


Procedures to legal ly start and operate acompany (number)

Pre-registration (for example, name verificationor reservation, notarization)

Registration in economys largest business city

Post-registration (for example, social securityregistration, company seal)

Obtaining approval from spouse to start businessor leave home to register company

Obtaining any gender-specific permission thatcan impact company registration, companyoperations and process of getting nationalidentity card



Each procedure starts on a separate day (2procedures cannot start on the same day)

Procedures fully completed online are recordedas day





No professional fees unless services required bylaw or commonly used in practice

Paid-in minimum capital (% of income per capita)

Funds deposited in a bank or with third partybefore registration or up to 3 months afterincorporation


To make the data comparable across economies, several assumptionsabout the business and the procedures are used. It is assumed that anyrequired information is readily available and that the entrepreneur will payno bribes.

The business:- Is a limited liability company (or its legal equivalent). If there is more thanone type of limited liability company in the economy, the most commonamong domestic rms is chosen. Information on the most common form isobtained from incorporation lawyers or the statistical o ce. - Operates in the economys largest business city and the entire o cespace is approximately 929 square meters (10,000 square feet). For 11economies the data are also collected for the second largest business city.- Is 100% domestically owned and has ve owners, none of whom is a legalentity; and has a start-up capital of 10 times income per capita and has aturnover of at least 100 times income per capita. - Performs general industrial or commercial activities, such as theproduction or sale of goods or services to the public. The business doesnot perform foreign trade activities and does not handle products subjectto a special tax regime, for example, liquor or tobacco. It does not useheavily polluting production processes. - Leases the commercial plant or o ces and is not a proprietor of realestate and the amount of the annual lease for the o ce space is equivalentto 1 times income per capita.- Does not qualify for investment incentives or any special bene ts. - Has at least 10 and up to 50 employees one month af ter thecommencement of operations, all of whom are domestic nationals. - Has a company deed 10 pages long.

The owners: - Have reached the legal age of majority. If there is no legal age of majority,they are assumed to be 30 years old. - Are sane, competent, in good health and have no criminal record. - Are married and the marriage is monogamous and registered with theauthorities. - Where the answer di ers according to the legal system applicable to thewoman or man in question (as may be the case in economies where thereis legal plurality), the answer used will be the one that applies to themajority of the population.

Standardized Company

Legal form Socit Responsabilit Limite (SARL) - Limited Liability Company

Paid-in minimum capital requirement DZD 0




Procedure Men (number) 12 7.7 4.9 1.00 (New Zealand)

Time Men (days) 20 18.6 8.5 0.50 (New Zealand)

Cost Men (% of income per capita) 11.1 18.7 3.1 0.00 (United Kingdom)

Procedure Women (number) 12 8.4 4.9 1.00 (New Zealand)

Time Women (days) 20 19.3 8.5 0.50 (New Zealand)

Cost Women (% of income per capita) 11.1 18.7 3.1 0.00 (United Kingdom)

Paid-in min. capital (% of income per capita) 0.0 9.9 8.7 0.00 (113 Economies)

FigureStartingaBusinessinAlgeriaandcomparatoreconomiesRankingandDTF


0 100







Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores forstarting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureStartingaBusinessinAlgeriaProcedure,TimeandCost

Procedures (number)

1 2 3 4 5 6 * 7 8 9 10 11 120

5

10

15

20

Time (days)

0

1

2

3

4

5

6

Cost (%

of incom

e per capita)




DetailsStartingaBusinessinAlgeriaProcedure,TimeandCost

Applies to women only.



1 Obtain an attestation of the uniqueness of the selected company namefrom the Commercial Registry and pick up registration forms


The applicant must ll out a form, listing the four proposed company names,and pay a fee for the name search and the scal stamp. The CommercialRegistry (Centre National du Registre du Commerce, CNRC) conducts a namesearch and issues a name certi cate on the same day.

Since February 2015, the uniqueness of the company name can be checkedonline thought the portal www.cnrc.org.dz. Although the search and thereservation can be done online, business founders typically conduct thesetasks in-person at the CNRC.

1 day DA 576

2 Deposit the start-up capital with the notary public

Agency : Bank

The entrepreneur deposits the capital in the public treasury and obtains adeposit certi cate before drawing up the statues.

1 day no charge

3 Obtain the birth certi cate of the manager

Agency : Municipality

A copy of the business manager's birth certi cate is required fornotarization. It can be obtained at the Municipality.

1 day no charge

4 Draw up and notarize the company's constitution documents, submit aspecimen of managers signatures, and prepare and submit the lease forthe registered o ce of the company

Agency : Notary O ce

Business founders must complete the following procedures with a notary:draw up and notarize the company's constitution documents, submit aspecimen of managers signatures, and prepare and submit the lease for theregistered o ce 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.

7 days see comments

5 Publish the company constitution in the legal journal (Bulletin O cieldes Annonces lgales, BOAL)


A notice of company incorporation must be published at the O cial Bulletinof Legal Announcements (BOAL).

1 day DA 48 per line(assuming 20 lines)

6 File for company registration with the Commercial Registry


Entrepreneurs must register the company before the Commercial Registry.This must be done within two months of the formation of the company.

According to Law No. 04-08 (April 14, 2004), registration is completed within 1day. However, in practice, it still takes 2 days to obtain the nal registrationcerti cate.

Registration fees (Arrt du 10 juillet 2004 portant rvision des tarifsapplicables par le centre national du registre de commerce au titre de latenue des registres de commerce et des publicits lgales) are as follows: - DA 9,120 if the company capital is between DA 30,001 and DA 100,000- DA 9,520 if the company capital is between DA 100,001 and DA 300,000- DA 9,760 if the company capital is more than DA 300,000

2 days see comments

7 Pay for the stamp duty and obtain a receipt

Agency : Tax Authority and Commercial Registry (Centre National du Registredu Commerce, CNRC)

One must pay for the stamp duty. Fiscal stamps are sealed at the scaladministration. Other stamps are paid at the CNRC.

1 day(simultaneouslywith previousprocedure)

DA 4,000

8 Register for Income tax, Corporate tax and VAT with the local taxinspectorate

Agency : Tax Authority

The entrepreneur must register for Income tax (Impt sur le revenu globaldes personnes physiques, IRG), Corporate tax (Impt sur les bn ces despersonnes morales ou des socits, IBS), and VAT.

Upon registration, the Tax Authority shall issue a certi cate of existencebetween 2 and 5 days and a tax card (magnetic card) within a minimumperiod of 30 days (loi n 05-16 du 31 dcembre 2005 portant loi de nancespour 2006 (JO n 85 du 31 dcembre 2005)).

2 days no charge

9 Register at the National Health Insurance Authority (CNAS)

Agency : National Health Insurance Authority (Caisse Nationale desAssurances Sociales des Travailleurs Salaris, CNAS)

Employees must be registered by the new company before the CaisseNationale des Assurances Sociales des Travailleurs Salaris (CNAS), whichreceives employee declarations.The employer must report any new employee to the relevant authoritywithin 10 days of hiring.

1 day no charge

10 Register at the National Non-Salary Workers' Social Security Fund(CASNOS)

Agency : National Non-Salary Workers' Social Security Fund (Caisse Nationalede Scurit Sociale des Non Salaris, CASNOS)

Business founders must register before the Caisse Nationale de ScuritSociale des Non Salaris (CASNOS), which receives and register employerdeclarations.

1 day no charge

11 Make a company seal

Agency : Private sector

A company seal must be obtained. The cost of obtaining a company sealdepends on the type of seal, its quality and the price established by theprivate seal maker.

2 days DA 1,800

12 Have the companys accounting books stamped at the court

Agency : Court

The accounting and inventory books must be stamped when the companystarts its business activity.

1 day DA 8,000

Dealing with Construction PermitsThis topic tracks the procedures, time and cost to build a warehouseincluding obtaining necessary the licenses and permits,submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. Inaddition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality ofbuilding regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professionalcerti cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for moreinformation


Procedures to legally build a warehouse (number)

Submitting all relevant documents and obtainingall necessary clearances, licenses, permits andcertificates

Submitting all required notifications andreceiving all necessary inspections

Obtaining utility connections for water andsewerage

Registering and selling the warehouse after itscompletion



Each procedure starts on a separate daythough procedures that can be fully completedonline are an exception to this rule



Cost required to complete each procedure (% ofwarehouse value)


Building quality control index (0-15)

Sum of the scores of six component indices:

Quality of building regulations (0-2)

Quality control before construction (0-1)

Quality control during construction (0-3)

Quality control after construction (0-3)

Liability and insurance regimes (0-2)

Professional certifications (0-4)


To make the data comparable across economies, several assumptionsabout the construction company, the warehouse project and the utilityconnections are used.

The construction company (BuildCo):- Is a limited liability company (or its legal equivalent) and operates in theeconomys largest business city. For 11 economies the data are alsocollected for the second largest business city. - Is 100% domestically and privately owned; has ve owners, none of whomis a legal entity. Has a licensed architect and a licensed engineer, bothregistered with the local association of architects or engineers. BuildCo isnot assumed to have any other employees who are technical or licensedexperts, such as geological or topographical experts. - Owns the land on which the warehouse will be built and will sell thewarehouse upon its completion.

The warehouse: - Will be used for general storage activities, such as storage of books orstationery. - Will have two stories, both above ground, with a total constructed area ofapproximately 1,300.6 square meters (14,000 square feet). Each oor willbe 3 meters (9 feet, 10 inches) high and will be located on a land plot ofapproximately 929 square meters (10,000 square feet) that is 100% ownedby BuildCo, and the warehouse is valued at 50 times income per capita. - Will have complete architectural and technical plans prepared by alicensed architect. If preparation of the plans requires such steps asobtaining further documentation or getting prior approvals from externalagencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrativeand regulatory requirements).

The water and sewerage connections: - Will be 150 meters (492 feet) from the existing water source and sewertap. If there is no water delivery infrastructure in the economy, a boreholewill be dug. If there is no sewerage infrastructure, a septic tank in thesmallest size available will be installed or built. - Will have an average water use of 662 liters (175 gallons) a day and anaverage wastewater ow of 568 liters (150 gallons) a day. Will have a peakwater use of 1,325 liters (350 gallons) a day and a peak wastewater ow of1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater owthroughout the year; will be 1 inch in diameter for the water connectionand 4 inches in diameter for the sewerage connection.

Standardized Warehouse

Estimated value of warehouse DZD 20,535,314.00




Procedures (number) 19 16.2 12.5 7.00 (Denmark)

Time (days) 146 132.1 154.6 27.5 (Korea, Rep.)

Cost (% of warehouse value) 8.1 4.3 1.6 0.10 (5 Economies)

Building quality control index (0-15) 10.0 11.8 11.4 15.00 (3 Economies)

FigureDealingwithConstructionPermitsinAlgeriaandcomparatoreconomiesRankingandDTF


0 100







Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontierscores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of thecomponent indicators.

FigureDealingwithConstructionPermitsinAlgeriaProcedure,TimeandCost

Procedures (number)

1 * 2 * 3 4 5 6 7 8 9 10 11 12 13 14 * 15 * 16 * 17 * 18 * 190

20

40

60

80

100

120

140

Time (days)

0

1

2

3

4

5

6

7

Cost (%

of w

arehouse value)

Time(days) Cost(%ofwarehousevalue)



FigureDealingwithConstructionPermitsinAlgeriaandcomparatoreconomiesMeasureofQuality


0

2

4

6

8

10

12

14

16

Index score 10.0

14.0 14.013.0 13.0

11.8

DetailsDealingwithConstructionPermitsinAlgeriaProcedure,TimeandCost



1 Obtain a geotechnical study/soil test

Agency : Private rm

A geotechnical study (soil test) is needed by the engineer to establish theway the foundations of the building will be set. The cost will depend on thenature of the soil and the number of pits needed.

30 days DZD 1,350,000

2 Obtain an urban certi cate


An urban certi cate is not a legal requirement to obtain a constructionpermit. However, in practice it is required by the architect so that the plansare drawn according to the speci cities of this plot of land.

The owner will make the request to obtain the urban certi cate for this plotof land and will receive it in about one week by mail.

1