Starting Business in Ethiopia

Starting Business in Ethiopia (3)

The following areas of investment are exclusively reserved for Ethiopian nationals.

  1. Manufacturing of cement, cement & clay products.
  2. Banking, Insurance and micro – credit & saving services.
  3. Packaging, Forwarding and Shipping agency services.
  4. Broadcasting service.
  5. Mass media service.
  6. Attorney and legal consultancy services.
  7. Preparation of indigenous traditional medicines.
  8. Advertisement, promotion and translation works.
  9. Air transport service using aircraft with a seating capacity up to 50 passengers.
  10. Flour production
  11. Manufacturing of ice crème and cakes
  12. Finishing of fabrics ,yarn warp and weft, apparel and other textile products by bleaching, dyeing and other textile products by bleaching dyeing ,shrinking, sanforizing ,mercerizing or dressing
  13. Tanning of hides and skins below finished level.
  14. Printing industry
  15. Plastic shopping bag
  16. Quarry
  17. Provision of kindergarten, elementary junior secondary education.
  18. Tour operation below grade 1
  19. Provision of diagnostic center service by constructing own building
  20. Provision of clinical  center service by constructing own building
  21. Capital goods leasing, excluding leasing of motor vehicle.

A business organization may have Ethiopian nationality, provided that its capital is owned by Ethiopian Nationals. 

No Activity Fee in Birr
1 Issuance of  new investment permit 600
2 Expansion 300
3 Renewal of investment permit 200
4 Chang of investment permit 100
5 Substitution of lost or damage investment permit 100
6 Issuance of principal registration 100
7 change of principal registration 80
8 Renewal  of principal registration 100
9 Substitution of principal registration 50
10 Issuance of work permit 1,700
11 Renewal of work permit 1,300
12 Substitute  of work permit 1,000
13 Notarization of memorandum  652
14 Notarization of minute of meeting 160
15 Competency certificate  for contractor (G-1) 5,000
15 Technology of transfer 200
16 Issuance business license 100
17 Name registration 25
Sunday, 06 July 2014 19:16

Other Requirements for Investment Permit

Written by
  1. For Sole Proprietorship (Individual Investor)
    • An application form duly filled and signed by the investor / agent. Where the application is made by an agent, a photocopy of his/her power of attorney.
    • Photocopies of the relevant pages of a valid passport including the pages that shows recent entry visa;
    • Collect from EIA letters for the bank to deposit the minimum requirement.
    • To get an investment permit, come with bank recommendation letter about the deposited minimum required capital.
  2. Business organization (Wholly foreign owned and Joint investment )
    • Prepare Draft Memorandum and Articles of Association according to Ethiopian Investment Law.
    • Get a clearance letter from the Agency (EIA) for the name of the company.
    • Attach copy of valid passport and visa / or ID of the General Manager and shareholders.
    • Edit and authenticate the Memorandum and Article of Association at EIA.
    • Collect Letter for the bank to deposit the minimum requirement or the paid-up capital of the company.
    • To get the commercial registration and investment permit, come with bank recommendation letter about the deposited capital, TIN and authenticated office rental agreement.
    • Fill an application form and attach the above mentioned documents with it.
  3. Branch of a business organization
    • An application form duly filled and signed by the agent of the business organization.
    • Copy of memorandum and article of association or equivalent document of the parent company.
    • Photocopy of documents ascertaining the legal personality of the business organization (registration certificate).
    • Minutes of the parent company passed by an authorized body for the establishment of a branch company in Ethiopia, authenticated by the public notary, or a letter written by the owner in case of a one – Man Company.
    • Authenticated photocopy of the power of attorney of the representative of the company, and photocopies of the relevant pages of the representative’s valid passport or ID, in case the representative is and Ethiopian national.
    • Collect from EIA letters for the bank to deposit the minimum requirement.
    • To get an investment permit, come with bank recommendation letter about the deposited minimum required capital.
  4. Expansion or upgrading of existing Enterprises
    • An application form duly filled and signed by the investor / agent. Where the application is made by an agent, a photocopy of his/her power of attorney.
    • Where the investment is made by a business organization, photocopies of its memorandum and article of association (with amendments if any).
    • Photocopy of a valid business license, principal registration certificate and audit report of the existing enterprise.
    • Three passport size recent photographs of the investor or the general manager (if company).
Sunday, 06 July 2014 18:46

Forms of Investment

Written by

Investment may be carried out in one of the following forms
1. Sole Proprietorship (Individual Investor)
2. Business organization
• Wholly foreign owned
• Joint investment between domestic and foreign
• Branch of a business organization

Minimum Capital Requirement

Under the Investment Proclamation No. 769/2012 (as amended),

  1.  Any foreign investor, to be allowed to invest pursuant to the proclamation, shall be required to allocate a minimum capital of USD 200,000 for a single investment project.
  2. The minimum capital required of a foreign investor investing jointly with a domestic investor shall be USD 150,000.
  3. The minimum capital required of a foreign investor investing in Architectural or Engineering works or related technical consultancy services, technical testing and analysis or in publishing work shall be
    a) USD 100,000 if the investment is made wholly on his own;
    b) USD 50,000 if investment is made jointly with a domestic investor.
  4. A foreign investor re-investing his profits or dividends generated from his existing enterprise may not be required to allocate a minimum capital.