In Algerian law, partnerships are primarily regulated by the Commercial Code .There are several types of partnerships, each with its own characteristics. Here are the main ones:
1. General Partnership ( SNC):
Composed of two or more partners who have unlimited liability for the company’s debts.
Partners are jointly and severally liable.
The management is typically handled by one or more partners.
Transfer of shares requires the consent of all partners.
2. Limited Partnership ( SCS)
Composed of two types of partners:
General partners: Have unlimited liability and manage the company.
Limited partners: Have limited liability (up to their contributions) and do not participate in management.
Profits and losses are shared according to the partnership agreement.
3. Limited Partnership by Shares ( SCA)
A hybrid between a limited partnership and a joint-stock company.
Composed of:
General partners: With unlimited liability.
Shareholders: Whose liability is limited to the value of their shares.
Governed by more complex regulations than the SCS.
4. Limited Liability Company ( SARL)
The most common type of business structure.
Requires at least one and up to 50 partners.
Liability is limited to each partner's contribution.
Cannot issue shares or be publicly traded.
Management is handled by one or more managers(gérants).
5.Sole Proprietorship with Limited Liability ( EURL):
A one-person SARL where a single individual owns the company.
The owner’s liability is limited to their contribution.
Ideal for small businesses and entrepreneurs.
6.Joint Venture (SP):
A non-registered and informal partnership.
No legal personality; it exists only between the partners.
Used for temporary projects or confidential business ventures.
•However, it is important to note that the classification of partnerships varies from country to country. In business law in general, other forms of partnerships also exist, such as:
1. General Partnership (GP) – All partners share equal responsibility for managing the business and are personally liable for debts and obligations.
2. Limited Partnership (LP) – Includes at least one general partner (who has unlimited liability) and one or more limited partners (who have limited liability and do not participate in management).
3. Limited Liability Partnership (LLP) – All partners have limited liability, meaning they are not personally responsible for the debts of the business or the actions of other partners.
4. Limited Liability Limited Partnership (LLLP) – A variation of LP where both general and limited partners have some degree of limited liability.
5. Joint Venture – A temporary partnership formed for a specific project or purpose, typically dissolving once the goal is achieved.