SARL or EURL: which company should you choose in Algeria?

The same company, with one or several partners

The EURL (single-member limited liability company) is an SARL with only one partner. Both forms therefore follow the same Commercial Code rules: partners' liability is limited to their contributions, and the company is registered with the trade register (CNRC) after the articles are signed before a notary, the capital is deposited and the notice is published in the BOAL.

Capital: freely set since 2015

Since Law 15-20 of 30 December 2015, the capital of an SARL or EURL is set freely by the partners in the articles (Article 566 of the Commercial Code): the former DZD 100,000 minimum was abolished. Shares must, however, all have the same value. In practice, capital suited to the activity reassures banks, suppliers and partners.

Number of partners

This is the starting difference between the two forms:

• EURL: a single partner
• SARL: from 2 to 50 partners (Article 590 of the Commercial Code; the cap was 20 before 2015)
• An EURL can admit new partners and become an SARL by amending its articles, without creating a new company

Taxes: the same rules

Both the SARL and the EURL fall under the real regime: corporate tax (IBS) at 19%, 23% or 26% depending on the activity, VAT charged to customers and full accounts required. Profits distributed to resident partners are subject to a 10% withholding since the 2026 Finance Act. A company can never fall under the IFU, whatever its turnover.

The manager's social security status: the real day-to-day difference

The manager's social security scheme depends on their stake in the capital:

• Majority partner managing an SARL, or sole partner managing an EURL: self-employed, affiliated with CASNOS (15% of income, between DZD 43,200 and DZD 864,000 per year)
• Minority or non-partner manager paid by the company: covered by CNAS, like an employee

How to choose?

If you are starting alone, the EURL is the simplest form, and it can take on partners later. If there are several of you, choose the SARL, with articles that set how shares are split and how new partners can join. Both forms can be set up online at dzairlegal.com, with or without the all-inclusive pack covering official fees: see our prices.