FOREIGN INVESTOR: COMMERCIAL REGISTRATION OF A BRANCH COMPANY

Where the application is to establish a branch company in Ethiopia, the applicant is required to submit the following documents.

  • Legal certificate of incorporation in the country of origin;
  • Notarized document of the memorandum and articles of association;
  • A decision stating the organizations’ intent to invest in Ethiopia, together with the amount of capital allocated for the purpose; and
  • A power of attorney to the appointed agent in Ethiopia and his two passport size photographs;
  • Tax identification number(TIN)
  • An authenticated office lease agreement or title deed; and

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. 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.

The second 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.