Single-person LLC (EURL) formation

What is an EURL?

An EURL (Entreprise Unipersonnelle à Responsabilité Limitée - Single-Person Limited Liability Company) is a variant of the SARL for a single owner. It allows you to create a company with a minimum capital of 100,000 DZD while protecting your personal assets, as liability is limited to contributions.

Requirements for creating an EURL

To create an EURL in Algeria, you must meet the following conditions:

• A single owner (natural or legal person)
• Minimum share capital of 100,000 DZD
• A manager (the sole owner or a third party)
• Registered office in Algeria
• Prohibition on creating an EURL if you are already the sole owner of another EURL

Steps to create an EURL

Creating an EURL follows a process similar to that of a SARL:

• Reservation of company name (CNRC - Sijilcom) - 800 DZD
• Drafting of bylaws with a notary - 25,000 to 40,000 DZD (usually cheaper than a SARL)
• Deposit of share capital at the bank (100,000 DZD minimum)
• Publication of legal notice in BOAL
• Registration with CNRC (7-15 days)
• Obtaining NIF from DGI (free, 7-15 days)

Required documents

To build your EURL file, you will need:

• Negative certificate of company name (Sijilcom)
• Original notarized bylaws + copies
• Bank certificate of capital deposit
• Proof of publication in BOAL
• ID card or passport of the manager
• Proof of registered office (lease, deed of ownership or domiciliation)
• CNRC registration form
• 2 ID photos of the manager
• Sworn statement certifying that you are not already the sole owner of another EURL

Timeline and costs

The complete EURL creation process generally takes 3 to 6 weeks. The estimated total cost is approximately 150,000 to 180,000 DZD, including notary fees, registration fees and administrative costs. This is slightly cheaper than a SARL.

EURL taxation

An EURL in Algeria is subject to the same taxes as a SARL:

• IBS (Corporate Income Tax): 19% (industry), 23% (services), 26% (trade/import)
• TAP (Professional Activity Tax): 1 to 2% of turnover
• VAT: 9% (reduced rate) or 19% (standard rate) depending on products/services

Advantages of an EURL

The EURL offers many advantages for individual entrepreneurs:

• Liability limited to contributions (personal asset protection)
• Total autonomy: you are the sole decision-maker
• Enhanced credibility compared to sole proprietorship
• Affordable share capital (100,000 DZD minimum)
• Possibility of transforming the EURL into a SARL by bringing in new partners
• Simplified management: less formality than a multi-partner SARL

Differences between EURL and sole proprietorship

It is important to distinguish the EURL from sole proprietorship status:

• EURL: limited liability, share capital required, full accounting mandatory, enhanced professional image
• Sole proprietorship: unlimited liability, no share capital, ultra-simplified accounting, turnover ceiling
• The EURL is more suitable if you are aiming for significant growth or if you want to protect your personal assets