Awarding the first “Start-up” labels to twenty young entrepreneurs among the 47 labelled companies.
This is a first wave of companies carrying projects considered innovative with a strong growth potential, by the national committee for the labelling of “start-ups”, “innovative projects” and “incubators”, according to the modalities set by law.
According to Executive Decree 20-254 of September 15, 2020, the company must, to obtain this label, be incorporated under Algerian law and respect specific criteria, namely its existence which must not date back more than eight years, its model of business which must be based on products, services, a business model or any other innovative concept, as well as an annual turnover which must not exceed the amount set by the national committee.
At least 50% of the share capital must also be held by individuals, approved investment funds or by other companies with the “Start-up” label, while the growth potential of the company must be large enough, knowing that the company must not have more than 250 employees.
Obtaining this label allows start-ups to benefit from certain facilitations, particularly in terms of tax exemptions and support.
Project leaders interested in being awarded the “Start-up” label can submit their requests to the national labelling committee, which meets twice a month, through the portal www.startup.dz, launched at the beginning of last December.
During the award ceremony, the “Algerian start-up fund” explained the financing mechanisms put in place to finance start-ups, stressing that it is a venture capital fund unlike already existing mechanisms that finance projects with credits.
The General Manager of the fund, Ahmed Haftari, affirmed that all the files are treated in a way “quickly and without bureaucracy”, the procedure being done online via an electronic platform: “The delegated ministry responsible for the knowledge economy and start-up is the first ministry whose administrative procedures are only done electronically”.
The ceremony was also an opportunity for the beneficiary start-ups to raise certain difficulties encountered, particularly access to financing, premises, and export methods. The creation of a mediation unit, within the delegate ministry responsible for the knowledge economy and start-ups, aims to present the projects of young Algerian shoots to the various ministerial departments, and to facilitate their administrative procedures. This unit has handled, so far, more than 250 files.
Regarding the export of digital services developed by Algerian start-ups, discussions are underway between the delegate ministry and the Bank of Algeria in order to facilitate the current procedure, considered “complicated and discouraging” by start-ups, particularly in terms of Bank domiciliation and transfer of foreign currency from overseas.
The Conference dedicated to start-ups “Algeria Disrupt” is scheduled during the current year 2021, including three (3) regional editions of this event in the East, West and South of the country before organizing the national edition, expected towards the end of the year.
New opportunities for start-ups …
Extract from APS.dz Entrepreneurship: award of the first Start-up labels.
Posted On: Thursday, January 21, 2021
