Being the first step to establish any form of company, the foreign shareholders must pay real attention to the procedures of transfer of their contribution in the share capital to Algeria.

The transfer of share capital as well as the increase of share capital can be in cash as it can be in kind. In the first case, it must be performed compulsorily through a bank channel.

The procedures of the transfer of the share capital contribution and the share capital increase to Algeria are accomplished through the opening of the temporary bank account called share capital account “compte capital”, strictly regulated by the Regulation n° 90-03 of the Central Bank.

Therefore, the foreign shareholders must proceed accordingly to avoid any risk, and in particularly the blockage of the transfer, which might hinder and jeopardise the establishment of the company.

Thus, how can the foreign shareholders ensure the safety and the compliance of the procedures of the transfer?

What are the procedures of the transfer of share capital in cash?

Before any transfer, the foreign shareholders must choose a bank for the domiciliation of the sums transferred from abroad.

What are the steps in order to make the transfer of the share capital in cash for the establishment of a company? a temporary bank account called share capital account “compte capital” is required in which the transfer will take place.

Firstly, the foreign shareholders will have to get a written certificate and the project of the statute of the company from the notary.

Secondly, a request will be filled to the Algerian bank attached with a file of translated and certified documents allowing the identification of the foreign shareholders. After that, the bank will send the request to the Currency and Credit Board (Conseil de la Monnaie et du Crédit) to obtain a certificate for the opening of the share capital account.

Finally, the appointed Algerian bank will proceed with the creation of the share capital account, within 48 hours.

Therefore, the major step for the foreign shareholders is to designate a reliable bank, with expertise in such kind of cross-borders transfers.

startup algerie

Investment law : the transfer of share capital in cash to Algeria.

What about the increase of share capital ?

The share capital increase is implemented either by the issue of new shares or by an increase in the nominal amount of the existing shares.

What about the increase of the share capital through funding coming from abroad? In this case, a new special bank account will be required.

Here, the applicant must file a request to the appointed Algerian bank, attaching the translated and certified documents.

What about the increase in the existing shares? it is implemented through the incorporation of profits or reserves to the share capital and it is resolved with the unanimous consent of the shareholders.

Finally, the transfer of share capital will be done through an ad hoc Swift message respecting several formal requirements.

In particular, it should mention the exchange rate between the foreign currency and the Algerian Dinar, so that the foreign shareholders will receive the exact required amount in local currency.

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