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Algeria

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Typewritten Text

58482

© 2010 The International Bank for Reconstruction and Development / The World Bank

1818 H Street NW

Washington, DC 20433

Telephone 202-473-1000

Internet www.worldbank.org

All rights reserved.

1 2 3 4 08 07 06 05

A copublication of The World Bank and the International Finance Corporation.

This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclusions

expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the

governments they represent. The World Bank does not guarantee the accuracy of the data included in this work.

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[email protected].

Additional copies of Doing Business 2011: Making a Difference for Entrepreneurs, Doing Business 2010:

Reforming through Difficult Times, Doing Business 2009, Doing Business 2008, Doing Business 2007: How to

Reform, Doing Business in 2006: Creating Jobs, Doing Business in 2005: Removing Obstacles to Growth and

Doing Business in 2004:Understanding Regulations may be purchased at www.doingbusiness.org.

ISBN: 978-0-8213-7960-8

E-ISBN: 978-0-8213-8630-9

DOI: 10.1596/978-0-8213-7960-8

ISSN: 1729-2638

Library of Congress Cataloging-in-Publication data has been applied for.

Printed in the United States

Current features News on the Doing Business project

http://www.doingbusiness.org

Rankings How economies rank-from 1 to 183

http://www.doingbusiness.org/rankings/

Reformers Short summaries of DB2011 reforms, lists of reformers since DB2004

and a ranking simulation tool

http://www.doingbusiness.org/reforms/

Historical dataCustomized data sets since DB2004

http://www.doingbusiness.org/custom-query/

Methodology and research The methodologies and research papers underlying Doing Business

http://www.doingbusiness.org/Methodology/

Download reports Access to Doing Business reports as well as subnational and regional

reports, reform case studies and customized country and regional

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http://www.doingbusiness.org/reports/

Subnational and regional projects Differences in business regulations at the subnational and regional

level

http://www.doingbusiness.org/subnational-reports/

Law LibraryOnline collection of business laws and regulations relating to

business and gender issues

http://www.doingbusiness.org/law-library/

http://wbl.worldbank.org/

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Doing Business

http://www.doingbusiness.org/Local-Partners/Doing-Business/

Business Planet Interactive map on the ease of doing business

http://rru.worldbank.org/businessplanet

Contents

Introduction

and Aggregate Rankings

5 - Year Measure of

Cumulative Change

Starting a Business

Dealing with

Construction Permits

Registering Property

Getting Credit

Protecting Investors

Paying Taxes

Trading Across Borders

Enforcing Contracts

Closing a Business

Doing Business 2011

Business Reforms

1

Doing Business 2011 : Making a Difference for Entrepreneurs is the eighth in a series of annual reports investigating

regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators

on business regulations and the protection of property rights that can be compared across 183 economies, from

Afghanistan to Zimbabwe, over time.

A set of regulations affecting 9 stages of a business’s life are measured: starting a business, dealing with construction

permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing

contracts and closing a business. Data in Doing Business 2011 are current as of June 1, 2010*. The indicators are used

to analyze economic outcomes and identify what reforms have worked, where, and why.

The Doing Business methodology has limitations. Other areas important to business such as an economy ’s proximity

to large markets, the quality of its infrastructure services (other than those related to trading across borders), the

security of property from theft and looting, the transparency of government procurement, macroeconomic conditions

or the underlying strength of institutions, are not studied directly by Doing Business. To make the data comparable

across economies, the indicators refer to a specific type of business, generally a local limited liability company

operating in the largest business city. Because standard assumptions are used in the data collection, comparisons and

benchmarks are valid across economies. The data not only highlight the extent of obstacles to doing business; they

also help identify the source of those obstacles, supporting policymakers in designing reform.

The data set covers 183 economies: 46 in Sub-Saharan Africa, 32 in Latin America and the Caribbean, 25 in Eastern

Europe and Central Asia, 24 in East Asia and Pacific, 18 in the Middle East and North Africa and 8 in South Asia, as

well as 30 OECD high-income economies.

The following pages present the summary Doing Business indicators for Algeria. The data used for this economy

profile come from the Doing Business database and are summarized in graphs. These graphs allow a comparison of

the economies in each region not only with one another but also with the “good practice” economy for each indicator.

The good-practice economies are identified by their position in each indicator as well as their overall ranking and by

their capacity to provide good examples of business regulation to other countries. These good-practice economies do

not necessarily rank number 1 in the topic or indicator, but they are in the top 10.

More information is available in the full report. Doing Business 2011 : Making a Difference for Entrepreneurs

presents the indicators, analyzes their relationship with economic outcomes and recommends reforms. The data, along

with information on ordering the report, are available on the Doing Business website (www.doingbusiness.org).

* Except for the Paying Taxes indicator that refers to the period January to December of 2009.

Note: 2008-2010 Doing Business data and rankings have been recalculated to reflect changes to the methodology

and the addition of new economies (in the case of the rankings).

Economy Rankings - Ease of Doing Business

Algeria's ranking in Doing Business 2011

Algeria - Compared to global good practice economy as well as selected economies:

Algeria is ranked 136 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business.

Doing Business 2011

Ease of Doing Business 136

Starting a Business 150

Dealing with Construction Permits 113

Registering Property 165

Getting Credit 138

Protecting Investors 74

Paying Taxes 168

Trading Across Borders 124

Enforcing Contracts 127

Closing a Business 51

Rank

2

Summary of Indicators - Algeria

Starting a Business Procedures (number) 14

Time (days) 24

Cost (% of income per capita) 12.9

Min. capital (% of income per capita) 34.4

Dealing with Construction Permits Procedures (number) 22

Time (days) 240

Cost (% of income per capita) 44.0

Registering Property Procedures (number) 11

Time (days) 47

Cost (% of property value) 7.1

Getting Credit Strength of legal rights index (0-10) 3

Depth of credit information index (0-6) 2

Public registry coverage (% of adults) 0.2

Private bureau coverage (% of adults) 0.0

Protecting Investors Extent of disclosure index (0-10) 6

Extent of director liability index (0-10) 6

Ease of shareholder suits index (0-10) 4

Strength of investor protection index (0-10) 5.3

Paying Taxes Payments (number per year) 34

Time (hours per year) 451

Profit tax (%) 6.6

Labor tax and contributions (%) 29.7

Other taxes (%) 35.7

Total tax rate (% profit) 72.0

Trading Across Borders Documents to export (number) 8

Time to export (days) 17

Cost to export (US$ per container) 1248

Documents to import (number) 9

Time to import (days) 23

Cost to import (US$ per container) 14283

Enforcing Contracts Procedures (number) 46

Time (days) 630

Cost (% of claim) 21.9

Closing a Business Recovery rate (cents on the dollar) 41.7

Time (years) 2.5

Cost (% of estate) 7

The 5 year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies

from Doing Business 2006 to Doing Business 2011. Instead of highlighting which countries currently have the most business

friendly environment, this new approach shows the extent to which an economy’s regulatory environment for business has

changed compared with 5 years ago.

This snapshot reflects all cumulative changes in an economy’s business regulation as measured by the Doing Business

indicators-such as a reduction in the time to start a business thanks to a one-stop shop or an increase in the strength of

investor protection index thanks to new stock exchange rules that tighten disclosure requirements for related -party

transactions.

This figure shows the distribution of cumulative change across the 9 indicators and time between Doing Business 2006 and

Doing Business 2011

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

0.22

Egypt,Arab Rep.

France Tunisia Mauritania Morocco Algeria Spain

Doing

business has

become

easier (DB

change

score)

1. Benchmarking Starting a Business Regulations:

Algeria is ranked 150 overall for Starting a Business.

Ranking of Algeria in Starting a Business - Compared to good practice and selected economies:

7

Procedures

(number)

Time (days) Cost (% of

income per

capita)

Min. capital

(% of income

per capita)

Denmark* 0.0

New Zealand* 1 1 0.0

Good Practice

Economies

Algeria 14 24 12.9 34.4

Selected Economy

Egypt, Arab Rep. 6 7 6.3 0.0

France 5 7 0.9 0.0

Mauritania 9 19 33.6 412.1

Morocco 6 12 15.8 11.2

Spain 10 47 15.1 13.5

Tunisia 10 11 5.0 0.0

Comparator Economies

The following table shows Starting a Business data for Algeria compared to good practice and comparator economies:

* The following economies are also good practice economies for :

Procedures (number): Canada

Cost (% of income per capita): Slovenia

8

Starting a Business data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 147 150

Procedures (number) 14 14 14 14

Time (days) 24 24 24 24

Cost (% of income per capita) 13.2 10.8 12.1 12.9

Min. capital (% of income per capita) 45.2 36.6 31.0 34.4

2. Historical data: Starting a Business in Algeria

3. The following graphs illustrate the Starting a Business sub indicators in Algeria over the past 4 years:

9

Starting a Business Summary - Algeria

Registration Requirements:

STANDARDIZED COMPANY

Legal Form: Société à Responsabilité Limitée (SARL) -

Limited Liability Company

City: Algiers

This table summarizes the procedures and costs associated with setting up a business in Algeria.

No: Procedure Time to complete Cost to complete

Obtain an attestation on the uniqueness of selected company name

from the Centre National du Registre du Commerce (CNRC); pick up

registration forms

1 1 DA 490

Deposit the start-up capital with the notary public 2 1 no charge

Draw up and notarize the company constitution documents, submit

specimen of managers’ signatures, and prepare and submit the lease

for the registered office of the company

3 7 see comment

Obtain the criminal record and birth certificate of manager 4 2 DA 30

Publish the company constitution on the legal journal (B.O.A.L.) and

a nationally circulated newspaper

5 3 DA 1960

File for company registration with the commercial registry within two

months of the formation of the company

6 * 2 DA 9760

Pay for the stamp duty and obtain a receipt 7 1 DA 4000

10

Register for income tax (Impôt sur le revenu global des personnes

physiques, IRG), corporate tax (Impôt sur les bénéfices des personnes

morales ou des sociétés, IBS), and VAT with the local tax inspectorate

8 2 no charge

Register for the Caisse Nationale des Assurances Sociales des

Travailleurs Salariés (CNAS)

9 1 no charge

Open the company’s bank account with a commercial bank 10 1 no charge

Register for the Caisse Nationale de Sécurité Sociale des Non Salariés

(CASNOS)

11 1 no charge

Register with the Unemployment Insurance Fund (CNAC) 12 1 no charge

Make a company seal 13 2 DA 800

Have company’s accounting books stamped at the court 14 1 DA 6000

* Takes place simultaneously with another procedure.

11

Procedure Obtain an attestation on the uniqueness of selected company name from the Centre

National du Registre du Commerce (CNRC); pick up registration forms

1

Time to complete: 1

Cost to complete: DA 490

Comment: Fees for attestation of company name:

- Name search: DZD 480.

- Fiscal stamp: DZD 10.

The applicant must fill out a form, listing the four proposed company names, and pay a fee. The

Commercial Registry (Centre National du Registre du Commerce, CNRC) conducts a name search

and issues a name certificate on the same day.

Procedure Deposit the start-up capital with the notary public 2

Time to complete: 1

Cost to complete: no charge

Comment: The notary deposits the capital in a bank and obtains a deposit certificate before drawing up the

statutes.

Procedure Draw up and notarize the company constitution documents, submit specimen of

managers’ signatures, and prepare and submit the lease for the registered office of the

company

3

Time to complete: 7

Cost to complete: see comment

Comment: According to Executive Decree n° 08-243 fees are:

-5% if the company capital is between DZD 1 and DZD 200,000 ,

-1% if the company capital is between DZD 200,001 and DZD 300,000 DA,

-0.7% if the company capital is between DZD 300,001 and DZD 400,000

-0.6% if the company capital is between DZD 400,001 and DZD 500,000

-0.5% if the company capital is between DZD 500,001 and DZD 1,000,000

-0.5% if the company capital is DZD 1,000,000 and above

Procedure Obtain the criminal record and birth certificate of manager 4

Time to complete: 2


Comment: Since 2003, one can apply for the criminal record (extract de casier judiciaire) anywhere, without

visiting the Clerk of the Court in the manager’s birthplace. The managers must file the criminal

record with the Trade Register and also provide a copy of the birth certificate, obtained at the

birthplace. It is assumed that the managers already hold a birth certificate.

Procedure Publish the company constitution on the legal journal (B.O.A.L.) and a nationally

circulated newspaper

5

Time to complete: 3

Starting a Business Details - Algeria

12


Comment: The two newspapers are in Arabic and French language, respectively. The fees vary by newspaper.

For a daily newspaper, the fee is DZD 280 per line of 24 characters. For the official journal, the

Official Bulletin of Legal Announcements (BOAL), the fee is DZD 48 per line.

Procedure File for company registration with the commercial registry within two months of the

formation of the company

6

Time to complete: 2


Comment: According to Law No. 04-08 (April, 14 2004), registration is completed within 1 day. However, in

practice, it still takes 2 days to obtain the final registration certificate.

Registration fee (Arrêté du 10 juillet 2004 portant révision des tarifs applicables par le centre

national du registre de commerce au titre de la tenue des registres de commerce et des publicités

légales):

- DZD 9,120 if the company capital is between DZD 30,001 and DZD 100,000.

- DZD 9,520 if the company capital is between DZD 100,001 and DZD 300,000.

- DZD 9,760 if the company capital is more than DZD 300,000.

Procedure Pay for the stamp duty and obtain a receipt 7

Time to complete: 1


Comment: Fiscal stamps are sealed at the fiscal administration. Other stamps are paid at the CNRC.

Procedure Register for income tax (Impôt sur le revenu global des personnes physiques, IRG),

corporate tax (Impôt sur les bénéfices des personnes morales ou des sociétés, IBS), and

VAT with the local tax inspectorate

8

Time to complete: 2


Comment:

Procedure Register for the Caisse Nationale des Assurances Sociales des Travailleurs Salariés

(CNAS)

9

Time to complete: 1


Comment: The following three departments handle social security matters:

1. The Caisse Nationale des Assurances Sociales des Travailleurs Salariés (CNAS) receives

employee declarations.

2. The Caisse Nationale de Sécurité Sociale des Non Salariés (CASNOS) receives employer

declarations.

3. The Caisse Nationale d’Assurance Chômage (CNAC) is the competent authority for

unemployment matters.

The employer must report any new employee within 10 days of hiring.

Procedure Open the company’s bank account with a commercial bank 10

Time to complete: 1


13

Comment: The bank account can be opened only following commercial registration (a receipt by the

Commercial Registry suffices). The bank requires the following documents: company statutes, tax

registration, statistical ID, copy of director’s birth certificate. Documents are deposited in one day,

but the time needed for bank accounts to be operational and receive check books varies from bank

to bank.

Procedure Register for the Caisse Nationale de Sécurité Sociale des Non Salariés (CASNOS) 11

Time to complete: 1


Comment:

Procedure Register with the Unemployment Insurance Fund (CNAC) 12

Time to complete: 1


Comment:

Procedure Make a company seal 13

Time to complete: 2


Comment:

Procedure Have company’s accounting books stamped at the court 14

Time to complete: 1


Comment: The accounting and inventory books must be stamped when the company starts its business

activity. The fees amount to about DZD 2,000 per book.

14

1. Benchmarking Dealing with Construction Permits Regulations:

Algeria is ranked 113 overall for Dealing with Construction Permits.

Ranking of Algeria in Dealing with Construction Permits - Compared to good practice and selected economies:

16

Procedures

(number)


income per

capita)

Denmark 6

Qatar 0.8

Singapore 25

Good Practice

Economies

Algeria 22 240 44.0

Selected Economy

Egypt, Arab Rep. 25 218 293.7

France 13 137 23.6

Mauritania 25 201 463.2

Morocco 19 163 251.5

Spain 11 233 47.4

Tunisia 20 97 858.7


The following table shows Dealing with Construction Permits data for Algeria compared to good practice and comparator

economies:

17

Dealing with Construction Permits data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 111 113


Time (days) 240 240 240 240

Cost (% of income per capita) 57.8 46.8 39.6 44.0

2. Historical data: Dealing with Construction Permits in Algeria

3. The following graphs illustrate the Dealing with Construction Permits sub indicators in Algeria over

the past 4 years:

18

Dealing with Construction Permits in Algeria


BUILDING A WAREHOUSE

City: Algiers

The table below summarizes the procedures, time, and costs to build a warehouse in Algeria.


1 Legalize property act 2 days DZD 1,800

2 Obtain building permit 150 days DZD 2,500

3 Receive municipal inspection 5 days no charge

4 Receive municipal inspection 1 day no charge





19

9 Request and receive final inspection to obtain certificate of conformity 14 days no charge

10 Obtain certificate of conformity 1 day DZD 5,000

11 Notarize the updated property act 1 day no charge

12 Register the updated property act (title) at the property registry 1 day no charge

13 Apply for telephone line 1 day no charge

14 Ministry of Posts and Telecommunications inspects the site and prepares

an estimate

30 days DZD 13,200

15 Obtain telephone connection 30 days DZD 15,000

16 Notify municipal/ communal authority of connection to sewer mains 1 day no charge*

17 Apply for electricity connection 1 day DZD 25,000

18 Electricity company inspects the site and prepares an estimate 14 days DZD 15,000

19 Obtain electricity connection 25 days DZD 12,500

20 Apply for water connection 1 day no charge

21 The water company inspects the site and prepares an estimate 22 days DZD 13,000

22 Obtain water connection 18 days DZD 25,000


20

Procedure Legalize property act 1

Time to complete: 2 days

Cost to complete: DZD 1,800

Agency: Municipal authority (Autorité municipale)

Comment:

Procedure Obtain building permit 2




Comment:

Procedure Receive municipal inspection 3




Comment:


Time to complete: 1 day



Comment: The law does not specify the number of inspections that take place during construction.

However, inspections occur randomly before and during the construction process. The

variation depends on the visibility and on the exact location of the construction site.





Dealing with Construction Permits Details - Algeria

21

Comment:





Comment:





Comment:





Comment:

Procedure Request and receive final inspection to obtain certificate of conformity 9




Comment: When the warehouse is completed, BuildCo must notify the municipality so that it can

perform a final inspection of the construction. The inspector will usually arrive on site

within 2 weeks of the request.

Procedure Obtain certificate of conformity 10




22

Comment: Although the law requires a certificate of conformity, it is seldom issued in practice.

Procedure Notarize the updated property act 11




Comment:

Procedure Register the updated property act (title) at the property registry 12




Comment: Before the building can be used as collateral, banks require the property title and the

construction license. This case study assumes that BuildCo possesses a construction

license.

Procedure Apply for telephone line 13



Agency: Ministry of Posts and Telecommunications (Ministère des Postes et Télécommunications)

Comment:

Procedure Ministry of Posts and Telecommunications inspects the site and prepares an estimate 14




Comment: The Ministry of Posts and Telecommunications requires a 50% down payment on the

estimated charge before connecting the building.

Procedure Obtain telephone connection 15




23

Comment: A site visit may be required to prepare the estimate.

Procedure Notify municipal/ communal authority of connection to sewer mains 16



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

Comment:

Procedure Apply for electricity connection 17



Agency: Socièté Nationale de l'Electricité et du Gaz (SONELGAZ)

Comment:

Procedure Electricity company inspects the site and prepares an estimate 18




Comment: A site visit is sometimes required to prepare the estimate.

Procedure Obtain electricity connection 19




Comment:

Procedure Apply for water connection 20



Agency: SEAAL

24

Comment:

Procedure The water company inspects the site and prepares an estimate 21



Agency: SEAAL

Comment: A site visit is sometimes required to prepare the estimate.

Procedure Obtain water connection 22



Agency: SEAAL

Comment:

25

1. Benchmarking Registering Property Regulations:

Algeria is ranked 165 overall for Registering Property.

Ranking of Algeria in Registering Property - Compared to good practice and selected economies:

27

Procedures

(number)


property

value)

New Zealand* 2

Norway* 1

Saudi Arabia 0.0

Good Practice

Economies

Algeria 11 47 7.1

Selected Economy


France 8 59 6.1

Mauritania 4 49 5.2

Morocco 8 47 4.9

Spain 4 18 7.1

Tunisia 4 39 6.1


The following table shows Registering Property data for Algeria compared to good practice and comparator economies:


Procedures (number): United Arab Emirates

Time (days): Saudi Arabia, Thailand, United Arab Emirates

28

Registering Property data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 159 165


Time (days) 51 51 47 47

Cost (% of property value) 7.5 7.5 7.1 7.1

2. Historical data: Registering Property in Algeria

3. The following graphs illustrate the Registering Property sub indicators in Algeria over the past 4

years:

29

Registering Property in Algeria

STANDARDIZED PROPERTY Property Value: 14,532,242.21

City: Algiers

This topic examines the steps, time, and cost involved in registering property in Algeria.


1 Obtain a certificate of non-encumbrances from the

Land Registry (Conservation Foncière)

4 days DZD 500 for the

non-encumbrance certificate

2 Parties file the unsigned contract with the relevant

documents at the notary

3 days 3% for first DZD 500,000

of property value, 2% for

the next DZD 500,000, 1%

for exceeding amount

3 The seller pays registration and publication fees into

notary’s account at the Public Revenue Office (Trésor

Public)

1 day 6% of the property value

(5% registration fee + 1%

publication fee)

4 Parties sign the contract at the public notary 1 day no cost

5 The original deed and documents are filed by the

notary at the Registry of Deeds (Service de

l’Enregistrement et du Timbre)

4 days no cost

6 The notary provides a tax declaration to be deposited

at the local tax office

1 day (simultaneous

with following

procedures)

no cost*


30

7 File tax declaration and proof of payment at the local

tax office (Sous Direction du Recouvrement des

Impôts)

1 day (simultaneous

with following

procedures)

no cost*

8 Notary returns deposit to seller 30 days (time limit)

(simultaneous with

following procedures)

no cost*

9 The notary pays registration fees to the local tax

authorities (Recette des Impôts)

1 day (simultaneous

with previous

procedures)

Already counted in

Procedure 3

*

10 The notary issues payment for publication fee to the

Local Land Registry (Conservation Foncière) for

publication and issuance of the new deed

30 day (time limit -

(simultaneous with

previous procedures) )

Already counted in

Procedure 3

*

11 The notary issues a copy of the deed to each party 1 day (simultaneous

with procedures 6 to

11)

no cost*


31

Procedure Obtain a certificate of non-encumbrances from the Land Registry (Conservation

Foncière)

1


Cost to complete: DZD 500 for the non-encumbrance certificate

Agency: Land Registry (Conservation Foncière)

Comment: The notary obtains a non-encumbrance certificate from the Land Registry (Conservation

Foncière). The Land Registry will also check with the Tax Office to see that the seller is

up-to-date with tax payments linked to the property. The original Title is given to the Notary

by the Seller.

Procedure Parties file the unsigned contract with the relevant documents at the notary 2


Cost to complete: 3% for first DZD 500,000 of property value, 2% for the next DZD 500,000, 1% for

exceeding amount

Comment: The parties provide the notary with all the relevant documents such as the original Property

title, non-encumbrance certificate, Birth certificate. The notary takes note of the purchase

price and reviews the documents. He/she then issues an order of payment to the buyer for the

amount:

20% of the purchasing price, to be deposited in the notary’s agent account at the Public

Revenue Office,

5% of the property value for registration fees (2.5% for each party)

Transfert taxe (taxe de publicité foncière) 1% of property value

The notary’s fees are as follows:

3% for the first 500 000 DZD

2% for the second 500 000 DZD

1% for the rest of the amount

17% VAT is applicable on the notary fees

Procedure The seller pays registration and publication fees into notary’s account at the Public

Revenue Office (Trésor Public)

3


Cost to complete: 6% of the property value (5% registration fee + 1% publication fee)

Agency: Public Revenue Office (Trésor Public)

Comment: The Buyer subsequently informs the notary of the payment. The 6% consist of: (i) 5%

registration fee (2.5% to be paid each by seller and buyer) and (ii) 1% for publication fees.

Procedure Parties sign the contract at the public notary 4


Cost to complete: no cost

Registering Property Details - Algeria

32

Comment: After the deposit, the seller provides the notary with the receipt. The notary then drafts the

contract, which is signed by both parties and issues a provisional copy of the deed to the

seller. The notary then continues with the registration of the transfer deed (see proc. 6-11).

Procedure The original deed and documents are filed by the notary at the Registry of Deeds

(Service de l’Enregistrement et du Timbre)

5



Agency: Registry of Deeds (Service de l’Enregistrement et du Timbre)

Comment: The Registry of Deeds issues an order of payment of 6% property value to the notary.

Procedure The notary provides a tax declaration to be deposited at the local tax office 6

Time to complete: 1 day (simultaneous with following procedures)


Agency: Local tax office

Comment: The seller takes the proof of payment to the notary who provides a tax declaration to be

deposited at the local tax office Sous Direction du Recouvrement des Impôts)

Procedure File tax declaration and proof of payment at the local tax office (Sous Direction du

Recouvrement des Impôts)

7

Time to complete: 1 day (simultaneous with following procedures)


Agency: Local tax office (Sous Direction du Recouvrement des Impôts)

Comment: The seller or notary files the tax declaration and proof of payment at the local tax office (Sous

Direction du Recouvrement des Impôts)

Procedure Notary returns deposit to seller 8

Time to complete: 30 days (time limit) (simultaneous with following procedures)


Comment: After 30 days, and if there are no objections by the tax office, the notary delivers 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 the deposit.

Procedure The notary pays registration fees to the local tax authorities (Recette des Impôts) 9

Time to complete: 1 day (simultaneous with previous procedures)

Cost to complete: Already counted in Procedure 3

33

Agency: Local tax authorities (Recette des Impôts)

Comment: The notary issues a payment of 5% of the purchase value for the registration fees from the

agent account to the local tax authorities. Subsequently, the tax authorities issue to the notary

an original deed (‘minute de l’acte) only for his records. (The "minute" is the original received

by the notary. The notary must keep it and cannot make it public.)

Procedure The notary issues payment for publication fee to the Local Land Registry (Conservation

Foncière) for publication and issuance of the new deed

10

Time to complete: 30 day (time limit - (simultaneous with previous procedures) )

Cost to complete: Already counted in Procedure 3

Agency: Local Land Registry (Conservation Foncière)

Comment: The notary issues a payment by check for the publication fee of 1% of the purchase value (part

of 6% deposited by the seller) accompanied by a copy of the deed. The Land Registry then

issues a public deed to the notary.

Procedure The notary issues a copy of the deed to each party 11

Time to complete: 1 day (simultaneous with procedures 6 to 11)


Comment:

34

1. Benchmarking Getting Credit Regulations:

Algeria is ranked 138 overall for Getting Credit.

Ranking of Algeria in Getting Credit - Compared to good practice and selected economies:

36

Strength of

legal rights

index (0-10)

Depth of

credit

information

index (0-6)

Public

registry

coverage (%

of adults)

Private

bureau

coverage (%

of adults)

New Zealand* 100.0

Portugal 67.1

Singapore* 10

United Kingdom 6

Good Practice

Economies

Algeria 3 2 0.2 0.0

Selected Economy

Egypt, Arab Rep. 3 6 2.9 10.3

France 7 4 33.3 0.0

Mauritania 3 1 0.1 0.0

Morocco 3 5 0.0 9.9

Spain 6 5 54.6 10.7

Tunisia 3 5 22.9 0.0


The following table shows Getting Credit data for Algeria compared to good practice and comparator economies:


Strength of legal rights index (0-10): Hong Kong, China, Kenya, Kyrgyz Republic, Malaysia

Private bureau coverage (% of adults): Argentina, Australia, Canada, Iceland, Ireland, Norway, Sweden,

United Kingdom, United States

27 countries have the highest credit information index.

37

Getting Credit data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 135 138

Strength of legal rights index (0-10) 3 3 3 3

Depth of credit information index (0-6) 2 2 2 2

Private bureau coverage (% of adults) 0.0 0.0 0.0 0.0

Public registry coverage (% of adults) 0.2 0.2 0.2 0.2

2. Historical data: Getting Credit in Algeria

3. The following graphs illustrate the Getting Credit sub indicators in Algeria over the past 4 years:

38

Getting Credit in Algeria

The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit

registries in Algeria.

Getting Credit Indicators (2010) Indicator

Private credit

bureau

Public credit

registry 2 Private bureau coverage (% of adults)

Are data on both firms and individuals distributed? 1No Yes

Are both positive and negative data distributed? 1No Yes

Does the registry distribute credit information from retailers, trade

creditors or utility companies as well as financial institutions?

0No No

Are more than 2 years of historical credit information distributed? 0No No

Is data on all loans below 1% of income per capita distributed? 0No No

Is it guaranteed by law that borrowers can inspect their data in the

largest credit registry?

0No No

Coverage 0.20.0

Number of individuals 0 ..

Number of firms 0 ..

Number of individuals 0 ..

Number of firms 0 ..

39

3 Strength of legal rights index (0-10)

Can any business use movable assets as collateral while keeping possession of the assets; and any financial

institution accept such assets as collateral ?

Yes

Does the law allow businesses to grant a non possessory security right in a single category of movable assets,

without requiring a specific description of collateral?

No

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without

requiring a specific description of collateral?

Yes

May a security right extend to future or after-acquired assets, and may it extend automatically to the products,

proceeds or replacements of the original assets ?

No

Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations

and debts can be secured by stating a maximum amount rather than a specific amount between the parties ?

Yes

Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the

grantor's name of a security right ?

No

Do secured creditors have absolute priority to their collateral outside bankruptcy procedures? No

Do secured creditors have absolute priority to their collateral in bankruptcy procedures? No

During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? No

Does the law authorize parties to agree on out of court enforcement? No

40

1. Benchmarking Protecting Investors Regulations:

Algeria is ranked 74 overall for Protecting Investors.

Ranking of Algeria in Protecting Investors - Compared to good practice and selected economies:

42

Strength of

investor

protection

index (0-10)

New Zealand 9.7

Good Practice

Economies

Algeria 5.3

Selected Economy

Egypt, Arab Rep. 5.3

France 5.3

Mauritania 3.7

Morocco 3.3

Spain 5.0

Tunisia 5.3


The following table shows Protecting Investors data for Algeria compared to good practice and comparator economies:

43

Protecting Investors data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 73 74

Strength of investor protection index (0-10) 5.3 5.3 5.3 5.3

2. Historical data: Protecting Investors in Algeria

3. The following graph illustrates the Protecting Investors index in Algeria compared to best practice

and selected Economies:

9.7

5.3

5.3

5.3

5.3

5.0

3.7

3.3

New

Zea

land

Egypt,

Ara

b

Rep

.Fra

nce

Tunisia

Alg

eria

Spain

Mau

rita

nia

Mor

occo

Note: The higher the score, the greater the investor protection.

44

The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are

calculated in Algeria.

Protecting Investors in Algeria

Protecting Investors Data (2010) Indicator

Extent of disclosure index (0-10) 6

What corporate body provides legally sufficient approval for the transaction?3

Whether immediate disclosure of the transaction to the public and/or shareholders is

required?

0

Whether disclosure of the transaction in published periodic filings (annual reports) is

required?

0

Whether disclosure of the conflict of interest by Mr. James to the board of directors is

required?

2

Whether an external body must review the terms of the transaction before it takes place?1

Extent of director liability index (0-10) 6

Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller

transaction causes to the company?

1

Whether shareholders can hold the approving body (the CEO or board of directors) liable for

the damage that the Buyer-Seller transaction causes to the company?

1

Whether a court can void the transaction upon a successful claim by a shareholder plaintiff?0

Whether Mr. James pays damages for the harm caused to the company upon a successful

claim by the shareholder plaintiff?

1

45

Whether Mr. James repays profits made from the transaction upon a successful claim by the

shareholder plaintiff?

1

Whether fines and imprisonment can be applied against Mr. James?1

Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller

transaction causes to the company?

1

Ease of shareholder suits index (0-10) 4

Whether the plaintiff can obtain any documents from the defendant and witnesses during

trial?

2

Whether the plaintiff can directly question the defendant and witnesses during trial?0

Whether the plaintiff can request categories of documents from the defendant without

identifying specific ones?

0

Whether shareholders owning 10% or less of Buyer's shares can request an inspector to

investigate the transaction?

0

Whether the level of proof required for civil suits is lower than that of criminal cases?1

Whether shareholders owning 10% or less of Buyer's shares can inspect transaction

documents before filing suit?

1

Strength of investor protection index (0-10) 5.3

46

1. Benchmarking Paying Taxes Regulations:

Algeria is ranked 168 overall for Paying Taxes.

Ranking of Algeria in Paying Taxes - Compared to good practice and selected economies:

48

Payments

(number per

year)

Time (hours

per year)

Total tax rate

(% profit)

Maldives* 3 0

Timor-Leste 0.2

Good Practice

Economies

Algeria 34 451 72.0

Selected Economy


France 7 132 65.8


Morocco 28 358 41.7

Spain 8 197 56.5

Tunisia 8 144 62.8


The following table shows Paying Taxes data for Algeria compared to good practice and comparator economies:


Payments (number per year): Qatar

49

Paying Taxes data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 167 168

Total tax rate (% profit) 74.2 74.2 72.0 72.0

Payments (number per year) 34 34 34 34

Time (hours per year) 451 451 451 451

2. Historical data: Paying Taxes in Algeria

3. The following graphs illustrate the Paying Taxes sub indicators in Algeria over the past 4 years:

50

The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in

a given year in Algeria, as well as measures of administrative burden in paying taxes.

Paying Taxes in Algeria

Tax or mandatory

contribution

Payments

(number)

Notes on

Payments

Time

(hours)

Statutory tax

rate

Tax

base

Totaltax rate

(% profit)

Notes on

TTR

value added17.0% 189 12 Value added tax (VAT)

number of

pages in

document

DZD 40 to

DZD 60

1 Stamp duty

0.00rental value

of land

7.0% 1 Tax on unbuilt land

0.00fixed feeDZD 1,000 1 Vehicle tax

0.00fixed feeDZD 1,200 1 Dwelling tax

0.00value of fuel1.0% 1 Fuel tax

0.10fixed feeDZD 10,000paid jointly 0 Drainage tax

0.20rental value

of land

3.0% 1 Tax on built land

0.30interest

income

10.0%withheld 0 Tax on interest

1.00net salaries1.0%paid jointly 0 Apprenticeship tax

51

6.60taxable profit19.0% 152 4 Corporate income tax

28.80gross salaries25.5% 110 12 Social security

contributions

35.40turnover2.0%paid jointly 0 Tax on professional

activity

Totals 34 451 72.0

52

1. Benchmarking Trading Across Borders Regulations:

Algeria is ranked 124 overall for Trading Across Borders.

Ranking of Algeria in Trading Across Borders - Compared to good practice and selected economies:

54

Documents to

export

(number)

Time to

export (days)

Cost to

export (US$

per

container)

Documents to

import

(number)

Time to

import (days)

Cost to

import (US$

per

container)

Denmark* 5

France 2 2

Malaysia 450

Singapore 4 439

Good Practice

Economies

Algeria 8 17 1248 9 23 1428

Selected Economy

Egypt, Arab Rep. 6 12 613 6 12 698

France 2 9 1078 2 11 1248

Mauritania 11 39 1520 11 42 1523

Morocco 7 14 700 10 17 1000

Spain 6 9 1221 7 10 1221

Tunisia 4 13 773 7 17 858


The following table shows Trading Across Borders data for Algeria compared to good practice and comparator economies:


Time to export (days): Estonia

55

Trading Across Borders data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 122 124

Cost to export (US$ per container) 1198 1248 1248 1248

Cost to import (US$ per container) 1378 1428 1428 1428

Documents to export (number) 8 8 8 8

Documents to import (number) 9 9 9 9

Time to export (days) 17 17 17 17

Time to import (days) 23 23 23 23

2. Historical data: Trading Across Borders in Algeria

3. The following graphs illustrate the Trading Across Borders sub indicators in Algeria over the past 4

years:

56

These tables list the procedures necessary to import and export a standardized cargo of goods in Algeria. The documents

required to export and import the goods are also shown.

Trading Across Borders in Algeria

Nature of Export Procedures (2010) Duration (days) US$ Cost

Documents preparation 8 450

Customs clearance and technical control 4 100

Ports and terminal handling 2 310

Inland transportation and handling 3 388

Totals 17 1248

Nature of Import Procedures (2010) Duration (days) US$ Cost

Documents preparation 10 540

Customs clearance and technical control 6 100

Ports and terminal handling 5 400

Inland transportation and handling 2 388

Totals 23 1428

58

Export

Bill of lading

Cargo release order

Certified copy of the commercial registry

Commercial Invoice

Customs export declaration

Packing list

Technical standard/health certificate

Terminal handling receipts

Import

Bill of lading

Cargo release order

Certified copy of the commercial registry

Commercial Invoice

Customs import declaration

Inspection report

Packing list

Technical standard/health certificate

Terminal handling receipts

Documents for Export and Import

59

1. Benchmarking Enforcing Contracts Regulations:

Algeria is ranked 127 overall for Enforcing Contracts.

Ranking of Algeria in Enforcing Contracts - Compared to good practice and selected economies:

61

Procedures

(number)


claim)

Bhutan 0.1

Ireland 20

Singapore 150

Good Practice

Economies

Algeria 46 630 21.9

Selected Economy


France 29 331 17.4


Morocco 40 615 25.2

Spain 39 515 17.2

Tunisia 39 565 21.8


The following table shows Enforcing Contracts data for Algeria compared to good practice and comparator economies:

62

Enforcing Contracts data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 124 127


Time (days) 630 630 630 630

Cost (% of claim) 21.9 21.9 21.9 21.9

2. Historical data: Enforcing Contracts in Algeria

3. The following graphs illustrate the Enforcing Contracts sub indicators in Algeria over the past 4 years:

63

Enforcing Contracts in Algeria

This topic looks at the efficiency of contract enforcement in Algeria.

IndicatorNature of Procedure (2010)

Procedures (number) 46

Time (days) 630

Filing and service 21.0

Trial and judgment 390.0

Enforcement of judgment 219.0

Cost (% of claim)* 21.90

Attorney cost (% of claim) 8.1

Court cost (% of claim) 9.4

Enforcement Cost (% of claim) 4.4

64

* Claim assumed to be equivalent to 200% of income per capita.

Court information: Alger Sidi M'hamed Tribunal,

Commercial Section

("محكمة سيدي محمد - القسم التجـاري")

65

1. Benchmarking Closing Business Regulations:

Algeria is ranked 51 overall for Closing a Business.

Ranking of Algeria in Closing Business - Compared to good practice and selected economies:

67

Recovery rate

(cents on the

dollar)

Time (years) Cost (% of

estate)

Ireland 0.4

Japan 92.7

Singapore* 1

Good Practice

Economies

Algeria 41.7 2.5 7

Selected Economy

Egypt, Arab Rep. 17.4 4.2 22

France 45.2 1.9 9

Mauritania 10.3 8.0 9

Morocco 38.4 1.8 18

Spain 76.3 1.0 11

Tunisia 51.7 1.3 7


The following table shows Closing Business data for Algeria compared to good practice and comparator economies:


Cost (% of estate): Colombia, Kuwait, Norway

68

Closing a Business data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 51 51

Time (years) 2.5 2.5 2.5 2.5

Cost (% of estate) 7 7 7 7

Recovery rate (cents on the dollar) 41.7 41.7 41.7 41.7

2. Historical data: Closing Business in Algeria

3. The following graphs illustrate the Closing Business sub indicators in Algeria over the past 4 years:

69

Since 2004 Doing Business has been tracking reforms aimed at simplifying business regulations, strengthening property

rights, opening access to credit and enforcing contracts by measuring their impact on 10 indicator sets . * Nearly 1,000

reforms have had an impact on these indicators. Doing Business 2011, covering June 2009 to June 2010, reports that 117

economies implemented 216 reforms to make it easier to start a business. 64% of economies measured by Doing

Business have reformed this year, focusing on easing business start-up, lightening the tax burden, simplifying import and

export regulations and improving credit information systems.

Negative Change

Positive Change

Economy

Clo

sin

g a

Bu

sin

ess

En

forc

ing

Con

trac

ts

Tra

din

g A

cros

s B

ord

ers

Pay

ing

Tax

es

Pro

tect

ing

Inve

stor

s

Get

tin

g C

red

it

Reg

iste

rin

g P

rop

erty

Dea

lin

g w

ith

Con

stru

ctio

n

Per

mit

s

Sta

rtin

g a

Bu

sin

ess

Kazakhstan

Rwanda

Peru

Vietnam

Cape Verde

Tajikistan

Zambia

Hungary

Grenada

Brunei Darussalam

* For Doing Business 2011 the Employing Workers indicator is not included in the aggregate ease of doing

business ranking.

The top 10 most-improved in Doing Business 2011

70

Summary of changes to business regulation in top 10 most improved economies in Doing

Business 2011 and selected comparator economies.

Brunei Darussalam Brunei Darussalam made starting a business easier by improving efficiency at the company registrar

and implementing an electronic system for name searches. Brunei Darussalam reduced the corporate

income tax rate from 23.5% to 22% while also introducing a lower tax rate for small businesses,

ranging from 5.5% to 11%. The introduction of an electronic customs system in Brunei Darussalam

made trading easier.

Cape Verde Cape Verde made start-up easier by eliminating the need for a municipal inspection before a business

begins operations and computerizing the system for delivering the municipal license. Cape Verde eased

property registration by switching from fees based on a percentage of the property value to lower fixed

rates. Cape Verde abolished the stamp duties on sales and checks.

Egypt, Arab Rep. Egypt reduced the cost to start a business. Egypt made trading easier by introducing an electronic

system for submitting export and import documents.

Grenada Grenada eased business start-up by transferring responsibility for the commercial registry from the

courts to the civil administration. The appointment of a registrar focusing only on property cut the time

needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading

faster by simplifying procedures, reducing inspections, improving staff training and enhancing

communication with users.

Hungary Hungary implemented a time limit for the issuance of building permits. Hungary reduced the property

registration fee by 6% of the property value. Hungary simplified taxes and tax bases. Amendments to

Hungary’s bankruptcy law encourage insolvent companies to consider reaching agreements with

creditors out of court so as to avoid bankruptcy.

Kazakhstan Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70)

and eliminating the need to have the memorandum of association and company charter notarized.

Kazakhstan made dealing with construction permits easier by implementing a one-stop shop related to

technical conditions for utilities. Kazakhstan strengthened investor protections by requiring greater

corporate disclosure in company annual reports. Kazakhstan speeded up trade through efforts to

modernize customs, including implementation of a risk management system and improvements in

customs automation.

Morocco Morocco strengthened investor protections by requiring greater disclosure in companies’ annual

reports.

Peru Peru eased business start-up by simplifying the requirements for operating licenses and creating an

online one-stop shop for business registration. Peru streamlined construction permitting by

implementing administrative

reforms. Peru introduced fast-track procedures at the land registry, cutting by half the time needed to

register property. Peru made trading easier by implementing a new web-based electronic data

interchange system, risk-based inspections and payment deferrals.

Rwanda Rwanda made dealing with construction permits easier by passing new building regulations at the end

of April 2010 and implementing new time limits for the issuance of various permits. Rwanda enhanced

access to credit by allowing borrowers the right to inspect their own credit report and mandating that

loans of all sizes be reported to the central bank’s public credit registry. Rwanda reduced the number of

trade documents required and enhanced its joint border management procedures with Uganda and other

neighbors, leading to an improvement in the trade logistics environment.

Spain Spain streamlined the documentation for imports by including tax-related information on its single

administrative document. Spain amended its regulations governing insolvency proceedings with the

aim of reducing the cost and time. The new regulations also introduced out-of-court workouts.

Tajikistan Tajikistan made starting a business easier by creating a one-stop shop that consolidates registration with

the state and the tax authority. Tajikistan strengthened investor protections by requiring greater

corporate disclosure in the annual report and greater access to corporate information for minority

investors. Tajikistan lowered its corporate income tax rate.

Tunisia Tunisia introduced the use of electronic systems for payment of corporate income tax and value added

tax. Tunisia upgraded its electronic data interchange system for imports and exports, speeding up the

assembly of import documents.

71

Vietnam Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining

a business license and tax license and by eliminating the need for a seal for company licensing.

Vietnam made dealing with construction permits easier by reducing the cost to register newly

completed buildings by 50% and transferring the authority to register buildings from local authorities to

the Department of National Resources and Environment. Vietnam improved its credit information

system by allowing borrowers to examine their own credit report and correct errors.

Zambia Zambia eased business start-up by eliminating the minimum capital requirement. Zambia eased trade by

implementing a one-stop border post with Zimbabwe, launching web-based submission of customs

declarations and introducing scanning machines at border posts. Zambia improved contract

enforcement by introducing an electronic case management system in the courts that provides electronic

referencing of cases, a database of laws, real-time court reporting and public access to court records.

72