Forms of presence
A foreign contractor can be present in Algeria in several ways. A liaison office can represent the parent company but may not trade. A branch (succursale) registered in the commercial register is the usual vehicle for executing a specific contract: it is treated as a foreign investment, must be registered with the National Centre of the Commercial Register (CNRC) and carries its own tax and social registrations. A company under Algerian law, typically a SARL or SPA, is the vehicle for a lasting presence; since the 2020 finance laws, the requirement that Algerian partners hold 51 percent of the capital no longer applies to non-strategic sectors, but it remains in force for strategic activities and, under the 2025 mining law, still applies to quarry operation.
Which form fits depends on the contract and the horizon. Many contractors use a branch for a first project and create a company once a pipeline exists.
Public procurement: Law 23-12 and the preference margin
Public works in Algeria are awarded under the law of 5 August 2023 on public procurement (Law 23-12), which replaced the 2015 regulation’s principles while implementing decrees were being prepared; the 2015 presidential decree 15-247 continued to govern detailed procedures in the meantime, and the electronic public-procurement portal provided for by the new law received its operating rules in 2026. Two provisions concern foreign bidders directly. A margin of preference of 25 percent is granted to products of Algerian origin and to companies under Algerian law whose capital is majority held by resident nationals. And for certain large projects designated by the authorities, the tender documents of international calls for tenders require foreign bidders to commit to invest in a partnership, in the same field of activity, with such an Algerian company, with sanctions if the commitment is not honoured; whether a given tender carries this clause is stated in its documents.
For a foreign contractor the consequence is that a credible, qualified Algerian partner is not only useful on site; it is part of the bid.
Subcontracting: the 40 percent ceiling and prior approval
Under the 2015 regulation, subcontracting in a public contract may not exceed 40 percent of the contract amount, the subcontractor must be approved by the contracting authority before starting, a copy of the subcontract is filed, and the subcontractor must declare its presence on site. Bidders also identify in their offer the share they intend to subcontract to companies under Algerian law. Whatever the exact figures in the texts applicable to a given tender, the direction is constant: Algerian subcontracting is expected, declared and capped.
The qualification certificate
Any company executing building, public works or hydraulic works under a public contract must hold a certificate of professional qualification and classification, created by executive decree 93-289 of 1993 and renewed since. The certificate states the fields of activity and the category of the company, which depends on its technical staff, equipment and financial capacity, and sets which contract sizes it may bid for. A subcontractor working on a public contract is in general expected to hold one for its field. It is the single most useful document to ask an Algerian partner for, because it summarizes what the state has verified about the company.
Documents a foreign contractor will be asked for, and will ask for
The usual Algerian file; names are given in French as they appear on the documents.
| Document | Issued by | What it shows |
|---|---|---|
| Extrait du registre de commerce (RC) | CNRC, consultable through the Sidjilcom portal | Legal existence, activities, registered office, managers |
| Numéro d’identification fiscale (NIF) | Tax administration | Tax registration; appears on every invoice |
| Extrait de rôle | Tax administration | Tax situation up to date (or a payment schedule) |
| Attestations de mise à jour CNAS / CASNOS | Social security funds | Social contributions paid for employees / managers |
| Certificat de qualification et classification | Ministry or wilaya commission | Fields and category for public works |
| Statuts and NIS | Notary; national statistics office | Legal form, capital, statistical identifier |
| Casier judiciaire of the manager | Ministry of Justice | Required in most public tender files |
How to vet an Algerian partner
Ask for the documents above and check what can be checked: the commercial register extract against the CNRC records, the tax and social clearances for their dates, the qualification certificate for its fields and validity. Then look at what no certificate shows. Does the company own the equipment it describes, and where is it kept? Can you visit the depot, the quarry or the plant? Does it know the terrain of the region where your project is, and can it explain how it would mobilize there? Is there a parts and maintenance organization behind the machines? Are contracts, correspondence and site documents available in a language your team reads? The answers to these questions separate a partner from a letterhead.
Frequently asked questions
Does the 51/49 rule still apply to foreign contractors in Algeria?
In general no longer for construction and public works: the 2020 finance laws removed the requirement that Algerian partners hold 51 percent of the capital for non-strategic sectors, while keeping it for strategic activities, and the 2025 mining law keeps it for quarry operation. A foreign contractor can therefore own a construction company in Algeria, but public procurement still rewards Algerian-majority companies through the preference margin and the partnership commitment.
What is the national preference margin in Algerian public procurement?
It is a 25 percent margin of preference, under Law 23-12 of 2023, granted to products of Algerian origin and to companies under Algerian law whose capital is majority held by resident nationals, applied when offers are compared.
How much of a public contract can be subcontracted in Algeria?
Under the 2015 public procurement regulation, subcontracting may not exceed 40 percent of the contract amount, and each subcontractor must be approved in advance by the contracting authority; the implementing texts of the 2023 law should be checked for the tender concerned.
What is the certificat de qualification et classification?
It is the certificate, created by decree 93-289 of 1993, that every company executing public building, public works or hydraulic works must hold; it states the company’s fields of activity and its category, which depends on its staff, equipment and financial capacity, and it is the first document to ask an Algerian partner for.
How can a foreign company verify an Algerian company?
By obtaining its commercial register extract (RC), tax identification (NIF), tax and social security clearances and qualification certificate, checking them against the issuing bodies such as the CNRC, and then visiting its depot, quarry or plant to confirm that the equipment and organization described actually exist.
How ETAHG can help
SARL ETAHG is an Algerian SARL established in 1997, registered in Bounoura, wilaya of Ghardaïa, with its own fleet at its depot in Djelfa and its own quarry and crushing plant at Oued Sdeur near Aïn El Ibel. It is organized to work with international contractors as subcontractor, equipment and aggregate supplier, site start-up partner or local partner, and makes its registration documents and company profile available to partners. See local partner for international contractors, road construction, equipment rental and fine aggregates.