What is the main difference between a SARL and an EURL?

The SARL has 2 to 50 partners. The EURL has a single partner. Every other characteristic (capital freely set by the articles of association, 100 000 DZD in bank practice, limited liability, IBS, procedures) is identical.

Can an EURL be converted into a SARL?

Yes, simply by transferring at least one share to a new partner. No major new articles are needed, just a simple and quick amendment to the articles.

Can a SARL be converted into an EURL?

Yes, if one partner buys back all the other shares. It must be recorded in the minutes of an extraordinary general meeting and in an amendment to the articles filed with the CNRC.

Which structure has better taxation?

By default they are identical (IBS 19-26 %). The EURL has an IRG option (the personal progressive scale) which can be more advantageous for small turnovers or a low IRG bracket.

Which one is better for raising funds?

The SARL. It is simpler to bring an investor in through a transfer of shares without changing the legal form. An EURL with an investor automatically becomes a SARL.

Are costs and timelines different?

No, they are identical. State fees of about 58 610 DZD plus notary fees, an UpGrowth support package of 208 610 to 268 610 DZD plus capital, and a timeline of 3 to 6 weeks for both forms.

Does the manager's social scheme differ?

For an EURL whose sole partner is the manager: always CASNOS (self-employed). For a SARL: it depends on the percentage of shares held. Majority manager = CASNOS, minority manager = CNAS.

SARL or EURL in Algeria, 2026 Comparison

SARL or EURL: the complete guide to choosing the right legal structure in Algeria. Comparison table, use cases, advice from lawyers. Make the informed decision in 2026.

Content verified on July 31, 2026Our methodology

ByÉquipe UpGrowth, Juristes et experts-comptables Algérie

Published on April 24, 2026Updated on July 31, 2026

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Summary: SARL or EURL in Algeria?

SARL and EURL are structurally identical: same capital, same procedures, same default taxation. The difference comes down to the number of partners: EURL = 1 only, SARL = 2 to 50.

If you are setting up alone and plan to stay alone: choose the EURL. If you are taking on a partner from the start, or expect to within 24 months: choose the SARL straight away (it avoids a conversion later).

SARL vs EURL comparison 2026

Criterion	SARL	EURL
Number of partners	2 to 50	1 only
Share capital	Freely set by the articles of association since Law 15-20 of 2015, 100 000 DZD in bank practice	Freely set by the articles of association since Law 15-20 of 2015, 100 000 DZD in bank practice
Liability	Limited to contributions	Limited to contributions
Management	Free (a partner or a third party)	Free (a partner or a third party)
Default taxation	IBS 19-26 %	IBS 19-26 %
IRG option available?	No	Yes (on option)
Notarized articles	Mandatory	Mandatory
BOAL publication	Mandatory	Mandatory
Manager's social scheme	CNAS or CASNOS depending on the shares held	CASNOS if the sole partner is the manager
Easy conversion?	→ SPA possible	→ SARL, straightforward (transfer of shares)
Creation cost (UpGrowth package)	208 610 - 268 610 + capital	208 610 - 268 610 + capital
Creation timeline	3-6 weeks	3-6 weeks

Which status fits your case?

You are alone today, modest project (turnover under 8M DZD): an EURL with the IRG option can lower the tax bill.
You are alone but a co-founder will join in 6 to 12 months: go straight to a SARL to avoid the conversion.
You want to raise a seed round: SARL (easier to bring an investor in).
You are aiming for the Startup Label: SARL preferred (the articles accommodate startup clauses more easily).
You are 2 partners from day one: SARL straight away.
You expect to transfer shares regularly: SARL (a proven mechanism).

Specific advantages of the SARL

Flexibility in how the capital is split (unequal shares between partners are possible).
Easy to welcome new investors through a transfer of shares.
Shared governance, no conflict of interest between the management and a sole partner.
Better suited to raising funds from VCs or business angels.

Specific advantages of the EURL

Full control for the sole partner (no extraordinary general meeting to negotiate).
IRG tax option available, advantageous for small turnovers.
No need to find a nominal second partner.
Simple conversion into a SARL if you need a partner later.

Common mistakes when choosing the status

Creating a SARL with a fictitious second partner (just to reach the minimum of 2): a judge can requalify it as an EURL.
Choosing an EURL thinking you can add a partner later with no formality: it takes a transfer of shares plus an amendment to the articles.
Opting for the IRG in an EURL without a tax simulation: it can cost more once turnover passes certain levels.
Ignoring the CASNOS/CNAS difference depending on the manager's status.

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