Subscribe for Free!

Published in the Official Journal No. 32, Law No. 22-09 of 4 Shawwal 1443 corresponding to May 5, 2022, amending and supplementing Ordinance No. 75-59 of September 26, 1975, on the Commercial Code.

 This law outlines the measures, conditions, and characteristics for implementing the Simplified Joint-Stock Company (SPAS) status for labeled startups.

Leancubator has summarized the main advantages offered by this new status dedicated to startups, which are as follows: 

• No limitation on the number of partners and shareholders, unlike an LLC (SARL), where the number must be between 2 and 100 people.
• The possibility for a shareholder or partner to make an industrial contribution, which includes their work, technical knowledge, and services (e.g., incubators and accelerators). This does not count towards the formation of the share capital but instead grants inalienable shares, which cannot be sold until the end of a fixed period. These contributions entitle the holder to net profits and participation in collective decisions.
• No minimum capital requirement (unlike a joint-stock company (SPA), which is set at 5 million DA).
• Significant flexibility in drafting the company's articles of association, especially regarding voting, collective decisions, and attributions.
• Easier entry and exit of capital compared to an LLC (SARL).
• Appointment of a board of directors consisting of its president and members (with the possibility of appointing a CEO or a deputy CEO). 

Note : The SPAS status does not allow the company's shares to be listed on the stock exchange.

Article written by Mr. Abdelfettah HERIZI, Managing Director of Leancubator