Share capital has no minimum anymore: now is when the real thinking starts
In short: « You need 100,000 DZD »: the figure still circulates even though law No. 15-20 abolished any minimum — SARL capital is freely set in the articles. That freedom moves the question rather than removing it: every displayed dinar bears a 0.5 % registration duty (10,000 DZD minimum), inflates partly proportional fees, and immobilises cash that produces nothing. Conversely, a shaved-down capital weakens the signal sent to partners and leaves the company no cushion for its first two years — statistically where it loses money. Between the two, a method: size the capital on the cash needed to cover twenty-four months of fixed charges and own investment, then check the release mechanics — one fifth paid at incorporation, balance called within five years, and the absolute ban on subscribing new shares without full release. Capital inflated by prudence and capital minimised by thrift are both wrong: here is how to compute yours.
Keywords in this article
1. 1. « You need 100,000 DZD »: what does the law actually say?
Nothing — and that is the very meaning of the reform. Law No. 15-20 of 30 December 2015 abolished the SARL's minimum capital: capital is « fixé librement par les associés dans les statuts » — freely set by the members in the articles — divided into equal shares, and must appear on every company document. The National Trade Register Centre confirms it in its incorporation sheet.
| What circulates | What the text says |
|---|---|
| « There is a 100,000 DZD minimum » | No minimum in SARL and EURL since law 15-20 |
| « Banks require that amount » | No text imposes it — in the practice we observe, some branches expect it as a credibility standard |
| « Big capital wins tenders » | Financial capacity is assessed on proportionate criteria — our article Public procurement: the capacity required details it |
Two exceptions before any computation: a joint-stock company requires at least DZD 1,000,000 (article 594), and some sector regulations impose their own capitals or guarantees. For a classic SARL you start from a blank page — that is where the work begins.
2. 2. What does every dinar displayed in the articles cost?
Capital is not free; it bills itself on three floors.
- The registration duty. Every formation deed bears a duty of 0.5 % of capital, minimum 10,000 DZD (article 248 of the registration code). Doubling a showcase capital doubles that line.
- The notary's fees. Our SARL guide notes it: they are partly proportional to capital — a high capital costs more to incorporate.
- Immobilisation. Paid-up capital sleeps until actually used. Cash frozen for image is cash not funding stock or the first employee.
The symmetry to remember. What capital costs is certain, immediate and proportional. What it buys is real but deferred: credibility, cushion, negotiating margin. Sizing means paying the former at fair price to obtain the latter at the right moment.
3. 3. What does capital actually buy — and what does it not?
It buys time. Well-sized capital absorbs the form's fixed charges (accounting, the manager's social contributions, tax minimums) during the first two years, statistically the most fragile. It is the method our SARL guide already recommends: size on your first two financial years, not on a legal minimum that no longer exists.
It buys a signal. Facing a banker, a buyer or a future partner, capital consistent with the project says its founders put figures behind their talk. In our engagements, the amount alone rarely weighs as much as its consistency with the plan presented.
It buys no fiscal advantage. The regime follows activity and turnover, not capital size (our article Legal form and turnover). And it buys no credit mechanically either: banks analyse flows and guarantees, not dormant sums — our bank-financing cluster details what they really look at.
Your capital computed on your figures, not on a rumour
Two-year cash projection, full cost of the retained capital and release calendar: we price the amount that stands upright.
Compute my capital4. 4. Fifth, quarter, five years: the release mechanics
Setting capital also means choosing its payment calendar. The code distinguishes forms and natures of contribution:
| SARL / EURL | Joint-stock company | |
|---|---|---|
| Cash at incorporation | At least one fifth paid up | At least a quarter released |
| In-kind contributions | Fully released from the outset | Fully released upon issue |
| Cash balance | Called by the manager within five years of registration | Called by board or directoire, same five-year cap |
Three rules complete the mechanics. Funds are deposited with the notary — or in cash with the Treasury — and released only after registration; if the company is not incorporated within six months of deposit, each member may claim his back (article 567 bis 1). And the most surprising rule: capital must be fully released before any new subscription in cash, on pain of nullity — the point discovered too late, when opening the capital to an investor.
5. 5. Size your capital on your first two financial years
Budget twenty-four months of fixed charges
Accounting, the manager's social contributions, tax minimums (our article on hidden post-incorporation costs lists them): this sum will have to come out even without revenue.
Add what capital alone must finance
What neither supplier credit nor leasing will cover at start-up — and which you do not want to borrow. The rest belongs to external financing, not to capital.
Check the credibility sought, not the showcase
Capital consistent with the plan reassures; inflated-for-show capital immobilises and bills. Ask what that amount will prove extra three years from now.
Round above, never below the real need
A later increase remains possible (articles 573-574); reduction is a heavy statutory operation. And remember the iron rule: new cash subscription = full release first.
If a cash need arises later between partners, the members' current account serves as short-term adjustment — our article on taking money out covers its regime.
This page offers a method, not a figure. The right capital depends on your real charges, your plan and your partners: have the sizing validated file in hand before freezing the clause at the notary.
FAQ — Frequently asked questions
Sources and references
- Ordonnance n° 75-59 du 26 septembre 1975 portant code de commerce, modifiée et complétée — art. 566 (capital fixé librement par les statuts, mentionné dans tous les documents ; version issue de la loi 15-20), art. 567 bis 1 (restitution des fonds si constitution dans les six mois), art. 573-574 (augmentation de capital, libération d'un cinquième, commissaire aux apports), art. 594 (capital minimum de la société par actions), art. 596 (libération du quart, apports en nature intégraux) — Ministère du Commerce · Verified on 06/08/2026
- Loi n° 15-20 du 30 décembre 2015 modifiant l'ordonnance n° 75-59 portant code de commerce (JO n° 71) — suppression du capital minimum de la SARL ; nouvelle rédaction de l'article 566 — Journal officiel de la République algérienne · Verified on 05/08/2026
- Code de l'enregistrement, édition 2026 — art. 248 : droit de 0,5 % sur le capital social des actes de formation de société, minimum 10 000 DA et maximum 300 000 DA pour les sociétés par actions — Direction générale des impôts · Verified on 06/08/2026
- CNRC — fiche « Création d'entreprise personne morale » : le capital est fixé librement par les statuts ; dépôt chez le notaire par chèque ou en espèces au Trésor — Centre national du registre du commerce (CNRC) · Verified on 22/08/2026
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