ADVICEInternationalINVESTMENTMoney vs CurrencyCommercial Regist…
Erick kamau
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Project Manager
Business Consultant
Engaging in business activities in Ethiopia involves several essential steps, including obtaining commercial registration, investment permits, and business licenses. Below is a comprehensive guide on the requirements and processes involved:
1. Commercial Registration
Requirements and Process by Type of Enterprise:
Sole Proprietors: To register as a sole proprietor, you need to submit the following:
Completed Application Form:Obtain and fill out the prescribed application form from the Ethiopian Investment Commission.
Trade Name Registration:Secure a trade name registration certificate.
Certificate of Taxpayer’s Identification Number (TIN):Obtain this from the tax authority.
Valid Identity Card or Passport:Provide original and copies.
Business Visa (for Foreigners):Present a valid business visa.
Photographs:Two passport-size photographs taken within the last six months.
Lease Agreement or Title Deed:Verify your business address with a lease agreement or a title deed.
Partnership and Private Limited Company: For partnerships and private limited companies, you need to:
Application Form:Complete the prescribed form.
Valid ID or Passport Copies of Manager: Include these documents.
Business Visa and Work Permit (for Foreign Managers):If the manager is a foreigner and a shareholder or partner, a valid business visa is required. If not, a valid work visa and work permit are needed.
Photographs:Two recent passport-size photographs of the manager.
Power of Attorney:If an attorney is applying on behalf of the founders, provide an original or attested copy of the power of attorney.
Memorandum and Articles of Association:Submit authenticated original and copies.
Minutes of Shareholders’ Resolution:Provide documentation of the resolution establishing the company.
Certificate of Incorporation and Notarized Documents:If a foreign corporate body is a member, include these.
Lease Agreement or Title Deed:Verify the business address.
Contribution Statements:Provide a signed statement for contributions in kind or intellectual property.
Trade Name and TIN Certificates:Ensure these are included.
Share Company: To register a share company, you need to:
Application Form:Complete the prescribed form.
Valid ID or Passport Copies of Manager and TIN:Include these documents.
Business Visa and Work Permit (for Foreign Managers):Same requirements as for partnerships and private limited companies.
Photographs:Two recent passport-size photographs of the manager.
Power of Attorney:If the company is under formation, provide an attested copy signed by all founders.
Memorandum and Articles of Association:Submit authenticated original and copies.
Certificate of Incorporation and Notarized Documents:If a foreign corporate body is a member, include these.
Lease Agreement or Title Deed:Verify the business address.
Bank Statement:Show at least one-fourth of the subscribed shares deposited in a blocked account.
Trade Name and TIN Certificates:Ensure these are included.
Note: All foreign documents must be authenticated by relevant authorities in the originating country, the Ethiopian Embassy, and further authenticated by the Ministry of Foreign Affairs and Document Authentication and Registration Office in Ethiopia.
2. Investment Permit
Who Needs an Investment Permit?
Foreign investors.
Joint ventures between domestic and foreign investors.
Foreign nationals/enterprises treated as domestic investors.
Enterprises incorporated in Ethiopia jointly by eligible investors.
Domestic investors seeking incentives.
Application Process:
For Domestic Investors:
Application Form:Obtain from the Ethiopian Investment Agency.
Power of Attorney:If signed by an agent, include a photocopy.
Identification:Provide a photocopy of the ID card, certificate of domestic investor status, and two recent passport-size photographs.
Business Organization Documents:Submit the memorandum and articles of association.
Bank Statement:Show the capital allotted for the business.
For Foreign Investors:
Application Form:Obtain from the Ethiopian Investment Agency.
Authorization Document:If filed by an agent, include a photocopy.
Identification:Provide the bio-pages of a valid passport and two recent passport-size photographs.
Permanent Residence Document:For Ethiopian nationals permanently residing abroad.
Business Organization Documents:Include the memorandum and articles of association, valid passport bio-pages of each shareholder, and two recent passport-size photographs of the general manager.
Corporate Body Documents:If a foreign corporate body is a member, include the certificate of incorporation and notarized documents.
Bank Statement:Show the minimum capital requirement deposited in a blocked account.
For Expansion or Upgrading of Existing Enterprise:
Application Form:Obtain from the Ethiopian Investment Commission.
Authorization Document:If filed by an agent, include a photocopy.
Identification:Provide the bio-pages of a valid passport or ID card.
Business Organization Documents:Include the memorandum and articles of association and two recent passport-size photographs of the general manager.
Existing Enterprise License:Provide a photocopy of the valid business license.
Project Feasibility Study:Include for expansion/upgrading projects.
Industrial Park Investment:
Application Form:Obtain from the Ethiopian Investment Commission.
Project Proposal:Include a detailed project proposal.
Export/Import Substitution Plan:Based on the type of proposal.
Financial Declaration:Provide a declaration of financial standing and a ten-year forecast.
Environmental Impact Assessment:Include a report.
3. Business Licensing
Requirements for Obtaining a Business License:
Commercial Registration Certificate:Ensure you have this document.
Investment Permit:Obtain this before applying for a business license.
Compliance with Relevant Laws:The business activity must not be prohibited.
Certificate of Competence:Issued by the appropriate organ.
Service Fee:Pay the required fee.
Application Submission:Submit an application to the relevant authority.
4. Summary of Procedures to Obtain an Investment Permit and a Commercial Registration Certificate
Prepare a Business Proposal:Outline your business plan.
Draft Memorandum and Articles of Association:Create these documents.
Verification:Verify the business proposal and draft documents at the Ethiopian Investment Commission.
Application Form:Fill out and submit the investment application form.
Trade Name Certificate:Obtain this certificate.
Authenticate Documents:Sign and authenticate the memorandum and articles of association.
Lease an Office:Secure a business location and authenticate the lease contract.
Obtain TIN:Get a tax identification number from the Ministry of Revenue.
Open a Bank Account:Submit support letters and open an account.
Deposit Capital:Deposit the minimum capital requirement.
Confirmation Letter:Obtain a letter from the bank confirming the deposit.
Submit Documents:Provide all necessary documents to the Ethiopian Investment Commission.
Pay Service Fee:Finalize the registration by paying the fee.
Obtain Certificates:Receive the commercial registration certificate and investment permit.
By following these detailed steps, you can ensure compliance with Ethiopian laws and successfully register and license your business in the country.
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Name * Erick Kamau kahura
Email * erick@daytonlimited.com
Website https://daytonlimited.com/2024
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