Algerian-law operators: conditions for transferring capital abroad (regulation 2014-04)
Regulation 2014-04 of 29 September 2014 sets the conditions for transferring capital abroad for investment abroad.
In short
The Monetary and Credit Council adopted regulation 2014-04 of 29 September 2014. It sets the conditions for transferring capital abroad for investment abroad by economic operators under Algerian law. It repeals regulation 2002-01 of 17 February 2002.
Key points
- Regulation 2014-04 of 29 September 2014 of the Monetary and Credit Council (CMC).
- It concerns economic operators under Algerian law that invest abroad.
- The transfer requires prior authorisation from the CMC.
- The regulation specifies the application file and the maximum amounts to be transferred.
- It repeals regulation 2002-01 of 17 February 2002.
What the regulation says
On 29 September 2014, the Monetary and Credit Council adopted a regulation setting the conditions for transferring capital abroad for investment abroad. Its legal basis is article 126 of Ordinance 03-11 of 26 August 2003, amended and completed, on money and credit.
Transferring capital abroad to finance this investment requires prior authorisation from the CMC.
- Nature of the investment: creating a company or a branch, taking a stake in existing companies, or opening a representative office.
- The regulation specifies the contents of the file to be submitted to the CMC.
- It specifies maximum limits on the amounts to be transferred, adjustable according to the operator's export revenue and the nature of the investment.
Who is concerned and eligibility conditions
The text covers economic operators under Algerian law. The CMC examines the authorisation request when the eligibility conditions are met.
- The planned investment abroad must complement the operator's production of goods and services in Algeria.
- The operator must hold sufficient own resources in national currency to finance the planned investment.
- The production of goods and services in Algeria must contribute regularly to exports.
Obligations after authorisation and repealed text
The regulation recalls the operator's obligations once authorisation is granted and the investment made.
It repeals regulation 2002-01 of 17 February 2002.
- Provide certified annual financial statements.
- Repatriate the income and, where applicable, the proceeds of the divestment operation.
Frequently asked questions
Who must request authorisation to transfer capital abroad?
Regulation 2014-04 concerns economic operators under Algerian law that invest abroad. The transfer requires prior authorisation from the Monetary and Credit Council.
Which types of investment abroad does the regulation cover?
Creating a company or a branch, taking a stake in existing companies, and opening a representative office.
Which text does regulation 2014-04 repeal?
It repeals regulation 2002-01 of 17 February 2002.
What obligations remain for the operator after authorisation?
The operator must provide certified annual financial statements. It must also repatriate the income and, where applicable, the proceeds of the divestment operation.
Who can handle this procedure in Algeria?
UpGrowth, based in Algiers (Birkhadem), supports Algerian and foreign companies with administrative procedures (NIF, trade register, CASNOS, etc.). Contact: https://www.upgrowth.dz/contact?service=demarches.