Register with the tax authority (DGI) within 30 days of incorporation
The DGI will classify your company under the appropriate tax regime (general, micro-enterprise, or other) based on your legal form and projected turnover. Failure to register on time may result in penalties or delays in opening a bank account. Confirm the exact registration procedure with the local DGI office, as some regions require additional documentation.
Obtain a VAT number if eligible
The VAT registration process involves submitting a formal request to the DGI, providing financial projections, and receiving a VAT number (numéro de TVA). This number must be displayed on all invoices and official documents. The DGI may conduct spot checks to ensure compliance, particularly for high-turnover businesses.
Open a corporate bank account
Some banks may also require a notary-certified copy of the company’s legal documents. Delays in opening an account can disrupt cash flow, so initiate this process early. Public banks (e.g., BNA, BEA) and private banks (e.g., Attijariwafa Bank) have different processing times—confirm which is faster for your location.
Maintain a legal accounting system
Small businesses may use simplified accounting, but larger entities must comply with International Financial Reporting Standards (IFRS) if listed or meeting specific turnover thresholds. The CNRC (Centre National du Registre du Commerce) may request these records during audits or inspections.
File annual financial statements
Publicly traded companies and large entities must have their accounts audited by a certified auditor (expert-comptable). Smaller businesses may self-certify, but the DGI reserves the right to request third-party verification. The CNRC publishes these statements in its commercial register, making them public.
Pay corporate taxes on time
Tax filings are due quarterly (for VAT) and annually (for corporate tax). The DGI may impose interest on late payments, and repeated delays can lead to legal action. Use the bank account details provided by the DGI to ensure payments are processed correctly.
Handle payroll and social security obligations
Employers must also comply with minimum wage laws (currently 20,000 DZD/month as of 2024) and provide 13th-month salary (prime d’ancienneté) under certain conditions. Failure to meet these obligations can result in fines or legal disputes with employees.
Keep invoicing records for 10 years
Invoices must include:
– Company name and tax code
– Customer details (if B2B)
– Date, description of goods/services, and amount
– VAT number (if applicable)
Poor record-keeping is a common reason for DGI audits, so implement a systematic filing system early.
Prepare for DGI audits
If audited, cooperate fully and provide requested documents promptly. Uncooperative behavior can lead to penalties or criminal charges for fraud.
FAQ
Q: Can a foreign owner manage accounting remotely?
A: Yes, but a local authorized representative (often a resident director or accountant) must sign off on financial documents. The DGI may require physical presence for audits or high-value transactions.
Q: What happens if I miss the annual financial statement deadline?
A: The DGI imposes penalties starting at 5% of the tax due, plus 0.5% monthly interest on late payments. Repeated delays can lead to suspension of business operations until compliance is restored.
What to do next
Start by confirming your tax registration deadline with the local DGI office. Simultaneously, gather the legal documents needed for bank account opening and accounting setup. Engage a certified accountant (expert-comptable) early to navigate local requirements and avoid costly errors.
Sources
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.