How To Start A Business in Ethiopia
How to Start a Business in Ethiopia - Step by Step Guidelines
Starting a business in Ethiopia involves several steps governed by the Ethiopian Investment Commission (EIC) and other government agencies. This guide provides a step-by-step overview for both local and foreign investors.
Step 1: Decide on the Type of Business Entity
The common types include Sole Proprietorship, Private Limited Company, and Public Limited Company. Foreign investors usually form Private Limited Companies.
Step 2: Reserve a Company Name
Apply to reserve a unique business name at the Ministry of Trade and Regional Integration.
Step 3: Obtain a Commercial Registration Certificate
Register the business with the Ministry of Trade after name approval.
- Fee: ETB 102
- Duration: 1-2 days
Step 4: Acquire a Business License
This is issued by the Ministry of Trade based on the type of business activity.
- Fee: Varies (ETB 102 and above depending on sector)
- Duration: 1-2 days
Step 5: Register for Tax Identification Number (TIN)
Register for TIN at the Ethiopian Revenue and Customs Authority (ERCA).
Step 6: Open a Business Bank Account
Open a bank account in the company’s name. For foreign investors, this step is necessary to deposit capital requirements.
- Capital Requirement for Foreign Investors: Minimum USD 200,000 (USD 100,000 for joint ventures)
Step 7: Obtain Investment Permit (for Foreign Investors)
Issued by the Ethiopian Investment Commission for all foreign investors.
Step 8: Register with the Documents Authentication and Registration Agency (DARA)
Required to authenticate business documents and shareholder agreements.
- Fee: ETB 100–300 depending on the document
- Duration: 1-2 days
Step 9: Register with the City Administration
Registration with local city or municipality for operational license and tax purposes.
- Fee: Varies by locality
- Duration: 1–3 days
Useful Resources
Disclaimer: The information provided above is for general guidance purposes only. Fees, durations, and requirements may change. It is strongly advised to consult the respective government agencies or a legal advisor for the most accurate and up-to-date information.