What are the detailed procedure of getting investment permit and setting up a company in Ethiopia?
These steps vary slightly depending on the business form under which investors plan to operate their business:
Sole Proprietorship
- Step 1:Collect information from Ethiopian Investment Commission (EIC) Information and Investment Promotion Department about requirements, incentives and etc.
- Step 2:Collect application form from www.investethiopia.gov.et or EIC information desk,
- Step 3:Submit filled and signed application form (by the investor or general manager or authorized person) together with project proposal (business plan) and previous business background (company profile), copy of valid passport, investment/ business visa to Licensing and Registration Department,
- Step 4:Collect bank letter from Licensing and Registration Department to get permission to open a foreign currency account at National Bank of Ethiopia.
- Step 5:Transfer/deposit cash in the opened company bank account,
- Step 6:Collect confirmation letter and credit advise from bank,
- Step 7:Submit two recent passport size photographs of the investor,
- Step 8:Collect investment permit certificate from Licensing and Registration Department.
Private Limited Company (PLC)
- Step 1:Collect application form from www.investethiopia.gov.et or Information Desk,
- Step 2:Collect sample memorandum and article of association, and information about requirements, incentives and etc. from Investment Promotion Directorate,
- Step 3:Submit filled and signed application form (by the investor or general manager or legally authorized person) along with project proposal (business plan), previous business background (company profile), memorandum and article of association, copy of valid passport, and investment or business visa of each shareholder to Licensing and Registration Department,
In case a Company is a shareholder, the following additional documents shall be submitted:
In case of a foreign company: –
– Notarized legal certificate of incorporation;
– Notarized minutes of resolution passed by authorized organ of the parent company authorizing to invest in Ethiopia;
– Notarized document of its memorandum and articles of associations or similar documents of the parent company; and
– Notarized Power of attorney of the agent.
In case of local company: –
– Copy of memorandum and articles of associations;
– commercial certificate;
– minutes of resolution passed by the shareholder’s; and
– Notarized power of attorney of the agent
- Step 4:fill and submit company name application form (available at information desk) with three proposed company names to check uniqueness of the company name.
- Step 5:Collect letter of clearance for unique company name from Licensing and Registration Department
- Step 6:Edit and authenticate memorandum and article of association in line with approved company name.
- Step 7:Collect bank letter from Licensing and Registration Department to get permission to open foreign currency account from National Bank of Ethiopia.
- Step 8:Transfer/deposit cash in the specified company account.
- Step 9:Collect confirmation letter and credit advice from the bank.
- Step 10:submit authenticated lease agreement and TIN number.
- Step 11:submit five recent passport size photographs of the General Manager.
- Step 12:Collect investment permit certificate and commercial registration certificate from Licensing and Registration Department.
Share company or Joint venture
- The requirement for PLC also apply for share company and joint venture.
Branch /Multinational Company
- Step 1:Collect/download application form from www.investethiopia.gov.et or EIC information desk.
- Step 2:Submit filled application form with project proposal (business plan), authenticated parent (mother) company documents and new company general manager’s valid passport and business or investment visa in Licensing and Registration Department.
- Step 3:Collect bank letter from Licensing and Registration Department to get permission to open foreign currency account from National Bank of Ethiopia.
- Step 4:Transfer/deposit cash in the specified company account.
- Step 5:Collect confirmation letter and credit advice from bank.
- Step 6:Collect investment permit certificate from Licensing and Registration Department.
Note:
All documents whose sources are outside of Ethiopia shall be
– Authenticated by the concerned notary office and Ethiopian Embassy in the foreign country; and
– Authenticated and registered by the Ministry of Foreign Affairs of Ethiopia.
Minimum Capital Requirements
– For wholly foreign owned company, the minimum capital requirement is 200,000 USD (USD 100.000 if it is architectural or engineering works or related technical consultancy services, technical testing and analysis or in publishing)
– For joint venture company, the minimum capital requirement is 150,000 USD (USD 50.000 if it is architectural or engineering works or related technical consultancy services, technical testing and analysis or in publishing)
