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Algeria is boldly stepping into an era of economic transformation by introducing a recent status of self-entrepreneurship, paving the way for promising opportunities for individuals who own a micro-enterprise and even employees wishing to pursue two activities simultaneously.

This innovative scheme aims to stimulate entrepreneurship and support the national economy by providing self-entrepreneurs with a simplified legal and fiscal environment, and easy access to the labor market through self-employment. Additionally, it presents an opportunity for startups in terms of cost reduction by facilitating collaboration with independent workers and enabling the sharing of human resources among multiple organizations.

On January 20, 2024, after the publication of three executive decrees in Official Journal No. 37, the National Agency of the Self-Entrepreneur (ANEA) was designated as the competent authority for the registration of self-entrepreneurs on its digital platform (link), accompanying them, and monitoring their activities. Furthermore, ANEA is tasked with issuing self-entrepreneur cards valid for five years. 

To be eligible for self-entrepreneur status in Algeria, an individual must meet these conditions: 

• Be of legal working age and have Algerian nationality
• Reside in Algeria
• Engage in an activity listed in the eligible activities for self-entrepreneur status 

Moreover, the law requires self-entrepreneurs to: 

• Register with the national self-entrepreneur registry
• Declare to the National Social Security Fund for Non-Salaried Workers (CASNOS)
• Declare existence to tax authorities to obtain a Tax Identification Number (TIN) within a maximum of 30 days after receiving the self-entrepreneur card.
• Submit semi-annual turnover declarations with the deposit of bank, commercial, and/or postal account statements. 

In terms of eligible activity sectors, according to the statement of the Minister Delegate for Economy, Knowledge, and Start-ups, Dr. Yacine El Mahdi Oualid, the number is currently fixed at around 1300 but is expected to grow in the future. These activities are distributed across 7 domains, namely: 

• Consulting, expertise, and training
• Digital services and related activities
• Home services
• Personal services
• Leisure and recreation services
• Business services
• Cultural, communication, and audiovisual services

But how is self-entrepreneur status beneficial in Algeria? 

One of the main advantages is providing individuals who want to launch their projects the opportunity to do so legally, benefit from social coverage, and also domicile the activity. Indeed, it is possible to domicile one's activity at their place of residence or in coworking spaces, facilitating the activity creation process.

Other significant advantages outlined in Article 9 of Law No. 22-23 include: 

• A single flat-rate tax regime of 5%
• Use of a simplified accounting system adapted to small businesses, consisting of recording revenues and expenses in a specific register, numbered and signed by local tax authorities.
• Exemption from the obligation to register with the trade register
• Preferential tax treatment
• Opening of a commercial bank account. 

The adoption of the self-entrepreneur status offers benefits to promote entrepreneurship, reduce unemployment, and limit the informal economy. However, similarity with other existing statuses creates implementation issues. Pending clarification of regulations, it is hoped that the law on self-entrepreneur status will establish a favorable legal framework for the many emerging activities in the informal labor market. 

Written by: : Amina BENTCHIKOU.