Company Registration and Licensing

1. Pre-Investment Preparation

Before approaching the Ethiopian Investment Commission (EIC), the investor needs to prepare:

• Business Plan / Feasibility Study (basic outline of activity, investment capital, job creation, etc.).

• Name Reservation (a unique company name to be registered at the Ministry of Trade or local trade bureau).

• Identification Documents:

  • For local investors: renewed trade license, TIN, ID/passport.

  • For foreign investors: notarized passport copies, business profile, parent company documents if applicable.

• Capital Commitment:

  • Minimum foreign investment capital: USD 200,000 (USD 150,000 if in joint venture with local partner).

  • USD 100,000 for consultancy, services, and technology transfer activities.

  • No minimum for domestic investors.

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2. Investment Registration (EIC)

The process starts with securing an Investment Permit from the Ethiopian Investment Commission.

Steps:

1. Application Submission:

   • Fill the investment permit application form (available at EIC).

   • Attach feasibility study, investor profile, and required documents.

2. Evaluation:

   • EIC evaluates whether the activity is open to foreign/local investors and complies with regulations.

3. Issuance of Investment Permit:

   • Once approved, EIC issues the Investment Permit, which grants the investor the right to establish a business entity in Ethiopia and open a bank account for capital transfer.

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3. Capital Registration & Bank Procedures

After the Investment Permit:

• Open a foreign currency account at a local commercial bank in Ethiopia (in the name of the new company under formation).

• Transfer the minimum investment capital from abroad into this account.

• The bank issues a Foreign Currency Inflow Confirmation letter to EIC.

• EIC registers the capital inflow and issues a Capital Registration Certificate (important for repatriation rights).

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4. Commercial Registration & Licensing

Once capital is registered, the company must secure its legal entity status.

Steps:

1. Drafting of Memorandum & Articles of Association (MoA & AoA):

   • Prepared by a local lawyer or notary.

   • Signed by all shareholders (or their attorneys via POA).

2. Notarization:

   • MoA/AoA notarized at the Documents Authentication and Registration Agency (DARA).

3. Commercial Registration:

   • Register the company at the Ministry of Trade (or Regional Trade Bureau).

   • Obtain a Commercial Registration Certificate.

4. Business License:

   • Apply for and obtain the relevant Business License for the sector of activity.