How to Register a Sole Proprietorship (Auto-entrepreneur / Entreprise Individuelle) in Algeria

For many freelancers, consultants, and gig workers, operating under a sole proprietorship is the most accessible way to structure their business, with relatively low cost and simpler compliance than a full company. In Algeria, the government has, in recent years, introduced a streamlined auto-entrepreneur status (statut de l’auto-entrepreneur) designed to lower barriers for small individual businesses.

However, while a registry is more straightforward than a full corporate structure, hurdles remain: eligibility restrictions, turnover caps, and coordinating tax and social security registration. The main benefit is simplicity—less red tape, lighter accounting obligations, and easier access to formal banking and social protection. The main challenge is that some sectors are excluded from eligibility, and exceeding turnover thresholds forces migration into heavier tax regimes.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Algeria (auto-entrepreneur / entreprise individuelle)?

In Algeria, a sole proprietorship is known in practice under two closely related concepts: entreprise individuelle or the more specific statut d’auto-entrepreneur. Depending on context, you may also see terms like:

• Sole trader
• Self-employed worker
• Independent contractor

These refer to a legal regime in which a single person operates a business without forming a separate company.

How does a sole proprietorship (auto-entrepreneur) work in Algeria?

Auto-entrepreneur vs. other business structures in Algeria

Although the auto-entrepreneur status is the simplest way to start working independently, it is not the only option. Algeria also offers other business structures, such as limited liability companies (SARL/EURL), partnerships, and joint-stock companies, which may be more suitable for entrepreneurs planning to scale or hire employees.

Step-by-step guide: How to register a sole proprietorship (auto-entrepreneur) in Algeria

Step 1: Check your eligibility

To qualify, you must first be an Algerian citizen of legal working age. Legal residents can also apply if they hold a valid residence permit. Foreign nationals are eligible provided they meet residence requirements and can show proof of their legal right to work in Algeria. In all cases, your chosen activity must appear on the government’s list of eligible professions, such as consulting, digital services, training, and cultural or personal services.

Step 2: Choose your business name

You may use your own name or a trade name. As part of registration, you must propose up to four name options in order of preference. You can use the CNRC's digital services to check the existing trade names. The CNRC system will check name availability, and you can reserve a name directly through the CNRC digital portal or an AAPI One-Stop Window.

Step 3: Gather required documents

You will need:

• Proof of identity (national ID card or passport)
• Proof of residence or address
• Proposed business name and any backup options
• Description of business activity (must be on the eligible list)
• For foreigners: a valid residence permit
• Any sector-specific permits if your chosen activity is regulated

Step 4: Register with CNRC via the sidjilcom portal

Registration is completed through the CNRC's sidjilcom portal. Once you submit your documents, the CNRC validates the application within three business days and issues your trade register number, tax ID (NIF), and confirmation of social security affiliation. After this, you receive your official auto-entrepreneur card, which is valid for five years.

Step 5: Pay registration fees and contributions

Official registration and service fees are published on the government website.

Step 6: Complete post-registration obligations

Once your registration is approved, you must meet ongoing compliance requirements. Every six months, you are required to declare your turnover to the tax authorities, even if you had no income. You must issue invoices for all services or sales, and each invoice must include your tax identification number and comply with Algerian invoicing standards. In addition, you are required to maintain a simplified accounting ledger that records all income and expenses, supported by those invoices and receipts. If your turnover exceeds the exemption threshold, you must register for VAT and move to the progressive IRG regime. You are also required to remain affiliated with the Caisse Nationale de Sécurité Sociale des Non-Salariés (CASNOS) and keep your social security contributions up to date. Finally, your auto-entrepreneur card must be renewed every five years to remain valid.

Financial and tax obligations for sole proprietors in Algeria

You are responsible for:

• Income tax (Impôt Forfaitaire Unique – IFU): As an auto-entrepreneur, you pay a flat tax on turnover: 5% for commercial and craft activities, and 12% for professional services. This simplified regime applies only if your annual turnover stays below 8 million DZD. If you exceed that threshold, you must switch to the progressive IRG, which ranges up to 35%. Tax declarations are filed semi-annually with the Direction Générale des Impôts (DGI).
• VAT (Taxe sur la Valeur Ajoutée – TVA): Auto-entrepreneurs are exempt from VAT as long as turnover remains below the exemption ceiling. Once exceeded, VAT registration becomes mandatory, and you must charge the standard Algerian VAT rate of 19% (with reduced rates of 9% and 0% for certain activities). Returns are typically filed monthly or quarterly via the tax office.
• Social security contributions: Sole proprietors must register with the CASNOS, which covers retirement, disability, and survivors’ benefits for self-employed workers. Contributions are mandatory and must be kept up to date; they are generally calculated annually based on income brackets.
• Record-keeping: You are required to keep a simplified accounting ledger that records all income and expenses, supported by invoices and receipts. These records must be kept for at least 10 years and may be reviewed by tax authorities during inspections.
• Invoicing: Every invoice must include your Numéro d’Identification Fiscale (NIF), business and client details, the date, a description of goods or services provided, and the amount charged. Invoices must be numbered sequentially and retained for your records in line with Algerian accounting rules.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start an auto-entrepreneur in Algeria?
None—there is no capital requirement.

Do auto-entrepreneurs need to register for VAT?
Not initially—they are exempt unless they exceed the VAT turnover threshold.

How much are the standard monthly or annual contributions?
Tax is flat at 5% or 12% of turnover, plus CASNOS social security contributions.

Can an auto-entrepreneur hire employees?
Yes, but hiring staff may create obligations that make a limited liability company more suitable.

How long does it take to register as an auto-entrepreneur in Algeria?
Usually, it takes three business days after submitting documents online.

Can foreign nationals register as auto-entrepreneurs in Algeria?
Yes, if they hold a valid Algerian residence permit and meet activity and turnover requirements.

Do auto-entrepreneurs need a separate business bank account?
Not mandatory, but strongly recommended for accounting and compliance purposes.

What happens if I stop working as an auto-entrepreneur?
You must deregister with CNRC, notify CASNOS, and file a final turnover declaration with the tax authorities.

Are there any government incentives or reduced rates for new auto-entrepreneurs?
Yes — the auto-entrepreneur regime itself is an incentive: simplified registration, flat tax rates, and exemption from VAT under turnover caps.

Can I use Deel as an auto-entrepreneur to get paid by international clients?
Yes. Deel allows freelancers and sole proprietors to receive payments globally in multiple currencies, with transparent exchange rates.

Does Deel generate compliant invoices for auto-entrepreneurs in Algeria?
Yes. Deel automatically generates invoices that comply with Algerian tax law.

Can Deel help me with taxes as a sole proprietor in Algeria?
Yes. Deel provides tax reports and records you can use when filing returns.

Does Deel offer contracts for freelancers and auto-entrepreneurs?
Yes. Deel includes contract templates compliant with Algerian law.

Can I access benefits through Deel as an auto-entrepreneur?
Yes. Deel offers optional perks such as health insurance, retirement plans, and other benefits normally reserved for employees.