FOREIGN INVESTOR: COMMERCIAL REGISTRATION OF A NEW LOCAL VIABLE COMPANY IN ETHIOPIA

Where the application is to establish a new local viable venture in Ethiopia, the foreign investor applicant is required to submit the following documents:

  • An application form signed by an agent of the company;
  • A name clearance from the Ethiopian Ministry of Trade
  • A photo copy of agent’s power of attorney;
  • A copy of memorandum and article of association;
  • A copy of each share holders valid passport or identity card or photo copy of a certificate evidencing a domestic investor status
  • Tax identification number(TIN)
  • An authenticated office lease agreement or title deed;
  • In case of non-share company, a bank statement showing that the company’s capital to be contributed in cash is deposited in a bank account and proper documents related to contribution in kind; and
  • In case of a share company, a bank statement showing that at least one fourth of par value of the subscribed shares of the company is deposited in a bank account

Up on filling the investment application form, the investment permit and company registration certificate shall be issued.

There are two major registration requirements. The first is the minimum capital requirement. The minimum capital requirement of a foreign investor is USD$200,000 per project. If a foreign investor invests in partnership with domestic investor(s), the minimum capital requirement of him is USD$150,000.The minimum entry capital required of a foreign investor investing in areas of architectural, engineering works or related technical consultancy services, technical testing and analysis and publishing works is USD$100,000. Where the investment is to be made jointly with domestic partner(s), the minimum capital required for the foreign investor is USD$50,000.

The second requirement is the investment areas open for foreign investors. The following areas are open for foreign investors.

  1. Manufacturing: Food and beverage industry, textile and leather and textile and leather products, wood products, paper and paper, chemical and chemical products, basic pharmaceutical products and pharmaceutical preparation industry, rubber and plastic products, basic metallic and other non-metallic minerals products, fabricated metal products, computer, electronic and optical products industry, electrical product industry, machinery and equipment industry, integrated manufacturing with agriculture, vehicles, trailers, and semi trailer industry, office and household furniture manufacturing, manufacturing of jewelers and related articles, musical instruments, sports equipment, games and toys and similar products.
  2. Agriculture: crop production, animal production crop and animal production(mixed) and forestry
  3. ICT,
  4. Generation, transmission and supply of electrical energy
  5. Hotel and Tourism: star designated hotels/resort hotels, motels, lodges and restaurant and grade one tour operation
  6. Grade one construction contracting including water well drilling and drilling for minerals exploration
  7. Real estate development
  8. Education and training: secondary and higher education by constructing own building, and technical and vocational training services including sport
  9. Health services: hospital service by construction own building
  10. Architectural and engineering works and related technical services, technical testing and analysis
  11. Publishing
  12. Import trade: LPG and bitumen
  13. Export trade: excluding raw coffee, chat, oil seeds, pulses, precious minerals, natural forestry products, hides and skins bought from the market and live sheep, goats ,camels, equines and cattle not raised by the investor and
  14. Whole sale trade: supply of petroleum and its by-products and well as whole sale of own products

The areas with the most promising potential for investment in the country today are agriculture, agro-processing, textile and garment, leather and leather products, sugar, chemical and pharmaceutical products, tourism, mining and hydropower.

 

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