Algeria’s Complementary Finance Act for 2020 and the Finance Act for 2021 have modified the legal provision that requires each foreign investor to have at least a 51% equity stake owned by an Algerian resident.
Accordingly, this rule, known as the 49/51 rule, is no longer a condition for the creation of a legal entity under Algerian law by a foreign investor, except for "strategic activities" and commercial companies carrying out an import and resale activity.
As background, “strategic activities” include:
- Mines sector
- Hydrocarbon sector
- Military industry sector
- Transportation sector
- Pharmaceutical industry sector (except in special cases)
In consideration of this framework, Executive Decree n° 21-145, issued on 22 April 2021, specifies the list of strategic activities, appearing on the national nomenclature of the economic activities, which remain subject to a national majority shareholder obligation.
Strategic activities related to the military industry sector will be set forth in a separate regulation.
The activities concerned and their national nomenclature codes (as per the Trade Register list) are:
Pharmaceutical industry sector
Code | Description |
104207 | Manufacture of pharmaceutical products |
104226 | Manufacture of medical devices |
308002 | Wholesale of pharmaceutical products |
308009 | Wholesale distribution of medical devices |
602120 | Contract research organization (CRO) |
602121 | Pharmaceutical establishment for the exploitation of registration decisions for pharmaceutical products |
602122 | Pharmaceutical establishment for the exploitation of medical device licensing decisions |
607016 | Society for the promotion and medical and scientific information on pharmaceutical products |
Hydrocarbon and Mines sectors
Code | Description |
102202 | Extraction of liquid and gaseous hydrocarbons |
102205 | Transport of liquid hydrocarbons and condensate by pipeline |
103101 | Mining and processing of iron ore |
103102 | Extraction and preparation of bauxite |
103103 | Mining and preparation of non-ferrous base metal ores |
103104 | Mining and preparation of ores for ferroalloys |
103105 | Mining and preparation of various metal ores |
103106 | Extraction and preparation of various metal ores |
103107 | Mining and preparation of uranium ores and radioactive ores |
103108 | Pyrite extraction and preparation, Sulphur production |
103109 | Extraction and preparation of various mineral products |
103201 | Coal mining |
103202 | Quarrying of dimension stone for construction and industry |
103207 | Extraction and preparation of various quarry products not intended for building materials |
103208 | Extraction and preparation of potassium salt |
103209 | Extraction and preparation of salts including salt marshes |
103210 | Extraction and preparation of phosphates |
Transportation sector
Code | Description |
604201 | Passenger rail transport |
604202 | Rail freight transport |
604301 | Air passenger transport |
604302 | Air cargo transport |
604303 | Air transport service |
604304 | Air service for agriculture |
604401 | Maritime passenger transport |
604402 | Maritime transport of goods |
604403 | Maritime cabotage |
604406 | Urban marine transport |
604602 | Handling |
604606 | Management of land transport infrastructures |
604607 | Port services company |
604608 | Airport services |
604633 | Ship’s agent |
604634 | Consignee of the cargo |
604635 | Shipbroker |
604637 | Operation of a light aviation service |
604641 | Chartering and air freighting |
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For additional information with respect to this Alert, please contact the following:
Ernst & Young Algérie, Algeria Tax, Legal and Transaction Practices Leader, Alger
EY Société d’Avocats, Africa Tax Desk Leader
- Bruno Messerschmitt | bruno.messerschmitt@ey-avocats.com
Ernst & Young Algérie, Business Tax Advisory, Alger
- Anis El hadj Ali | anis.el.hadj.ali@dz.ey.com
- Ghiles El Kadi | ghiles.elkadi@dz.ey.com
- AuthorEY
- CountryAlgeria
- TypeTax Alerts, Legislation & Policy, National/Federal Taxation
- Updated11 May 2021
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