What share capital does
Share capital is the total of the contributions members make to the company when it is formed. It appears in the articles of association. It gives banks, suppliers and clients a first idea of the company's strength. In a SARL or an EURL, it also marks the limit of the members' liability: as a rule, they bear losses only up to their contributions.
Capital stays the company's money. It uses it to get started: equipment, stock, first running costs.
Minimum capital by legal form
| Form | Minimum capital | Paid in at formation |
|---|---|---|
| EURL (single member) | None, any amount | At least 1/5 of cash contributions |
| SARL (2 to 50 members) | None, any amount | At least 1/5 of cash contributions |
| SPA without a public offering | 1,000,000 DA | Under the rules specific to joint-stock companies |
| SPA with a public offering | 5,000,000 DA | Under the rules specific to joint-stock companies |
| SPAS (certified start-ups) | Set by the articles | As set by the articles |
| Sole trader, auto-entrepreneur | No capital | Not applicable |
How much capital to plan
Since the law sets no minimum for a SARL or an EURL, the right amount depends on your project. Five questions help you decide.
- Your start-up needs: equipment, stock, first rents. Capital is often the company's first money.
- Your image: a very low capital can worry a bank or a major supplier.
- Your activity: some regulated activities impose their own financial conditions. Check them before setting the amount.
- The cost of the articles: the notary's quote varies with the capital (about 30,000 DA in the files we see).
- Each member's weight: the split of shares determines in practice how much each member weighs in decisions.
Payment: one fifth at the start, the rest within five years
Capital does not have to be paid in full on signing day. In a SARL or an EURL, each member pays at least one fifth of their cash contributions. The manager calls the rest when the company needs it, in one or more instalments, within five years of registration.
- 1
Set the amount and the split
Capital is divided into equal shares. Each member subscribes a number of shares matching their contribution.
- 2
Pay in at least one fifth
Each member pays at least one fifth of their cash contributions. According to the CNRC, the deposit is made with the notary by cheque, or in cash at the Treasury.
- 3
Sign the articles
The articles state the amount of capital, how shares are split among members and any contributions in kind.
- 4
Register the company
The funds remain blocked until the company is entered in the trade register.
- 5
Recover the funds
After registration, the notary hands the funds to the manager, who pays them into the company's bank account.
- 6
Call the balance
The manager decides when the rest is paid, in one or more instalments, within five years of registration at most.
Worked example (fictional)
SARL Atlas Conseil (example), capital of 100,000 DA divided into 100 shares of 1,000 DA.
| Member | Contribution | Shares | Paid at formation (1/5) | Still to pay |
|---|---|---|---|---|
| Member A (example) | 60,000 DA | 60 | 12,000 DA | 48,000 DA |
| Member B (example) | 40,000 DA | 40 | 8,000 DA | 32,000 DA |
| Total | 100,000 DA | 100 | 20,000 DA | 80,000 DA |
The company has 20,000 DA available after registration. The manager calls the remaining 80,000 DA as needed, within five years. Member A holds 60% of the shares, member B 40%.
Contributions in kind and in skills
A member can contribute an asset instead of money: a vehicle, equipment, a business. These contributions in kind are fully paid up at formation. Their value is entered in the articles on the basis of a report by a contributions auditor (commissaire aux apports).
Since Law No. 15-20, a SARL member can also contribute work or know-how: a contribution in skills (apport en industrie). It does not form part of the share capital. The articles set out the rights it gives.
Changing the capital after formation
Increasing or reducing capital is an amendment to the articles. It follows the same path as formation: members' decision, notarial deed, BOAL notice, then an update of the trade register entry at the CNRC.
Do it yourself or get help
The capital deposit is arranged with the notary when the articles are signed. If you want help with the company's setup forms (beneficial owners, trade register, G no. 8, NIS), we fill them in for 5,000 DA for all four. For full follow-up, allow 60,000 DA, or 50,000 DA if the company is domiciled at Neuron (official fees excluded).
Three ways to get it done
Do it yourself with this guide, have your setup forms filled in, or hand us the whole file.
1I do it myself
The free guide
Everything you need is on this page: documents, deadlines, a filled-in example.
Free
Follow the guide2We fill them in for you
Setup form filling
We fill in your business setup forms, for one price. You submit them yourself.
- Beneficial owner declaration
- Trade register, legal person
- G n°8
- NIS application
5,000 DAthe 4 setup forms of a company
Get it filled in3We handle everything
Full support
We follow every setup step: 50,000 DA for a sole trader, 60,000 DA for a company, 10,000 DA less if your address is with Neuron.
From 40,000 DA
Start my setup
Company setup support
Name reservation, articles, trade register, NIF, NIS, CASNOS: we follow the file with you.
- Sole trader: 50,000 DA, company: 60,000 DA
- 10,000 DA less if your registered address is with Neuron, even from abroad
- From abroad: 70,000 or 80,000 DA
From 40,000 DA