Zeineb Faci Group 18
The legal framework offers various types of business partnerships and company structures, each with distinct characteristics.
1. Sole Proprietorship (Entreprise Individuelle - EI)
• Description: Owned and managed by a single individual.
• Liability: The owner is personally liable for all business debts and obligations.
• Capital Requirement: No minimum capital required.
• Registration: Requires registration in the Trade Register, granting the status of a merchant.
2. Single-Member Limited Liability Company (Entreprise Unipersonnelle à Responsabilité Limitée - EURL)
• Description: A limited liability company with a single partner.
• Liability: The owner’s liability is limited to their capital contribution.
• Capital Requirement: No minimum capital required; the amount is freely determined by the owner.
• Registration: Requires drafting legal statutes with a notary and registration in the Trade Register, granting legal personality to the company.
3. Limited Liability Company (Société à Responsabilité Limitée - SARL)
• Description: Formed by 2 to 50 partners.
• Liability: Partners’ liability is limited to their contributions.
• Capital Requirement: No minimum capital required; the amount is freely determined by the partners and divided into equal shares.
• Registration: Requires drafting legal statutes with a notary and registration in the Trade Register, granting legal personality to the company.
4. General Partnership (Société en Nom Collectif - SNC)
• Description: Typically used for small businesses, often family-run.
• Liability: Partners have unlimited joint and several liability for the company’s debts.
• Capital Requirement: No minimum capital required.
• Registration: Requires registration in the Trade Register, granting legal personality to the company.
5. Joint Stock Company (Société par Actions - SPA)
• Description: Suited for larger enterprises, with capital divided into shares.
• Liability: Shareholders’ liability is limited to their share contributions.
• Capital Requirement: Minimum of 1,000,000 DZD for private companies; 5,000,000 DZD if publicly traded.
• Registration: Requires drafting legal statutes with a notary and registration in the Trade Register.
6. Simple Limited Partnership (Société en Commandite Simple - SCS)
• Description: Combines general partners (managing) and limited partners (investing).
• Liability:
• General Partners: Unlimited liability.
• Limited Partners: Liability limited to their contributions.
• Capital Requirement: No minimum capital required.
• Registration: Requires registration in the Trade Register.
7. Partnership Limited by Shares (Société en Commandite par Actions - SCA)
• Description: A hybrid of partnership and joint-stock company.
• Liability:
• General Partners: Unlimited liability.
• Limited Partners: Liability limited to their share contributions.
• Capital Requirement: Minimum of 1,000,000 DZD for private companies; 5,000,000 DZD if publicly traded.
• Registration: Requires registration in the Trade Register.
8. Simplified Joint Stock Company (Société par Actions Simplifiée - SAS)
• Description: Introduced in 2022, offering flexibility in management and organization.
• Liability: Shareholders’ liability is limited to their contributions.
• Capital Requirement