Ethiopia

 

 Official name:  The Federal Democratic Republic of Ethiopia

                Addis Ababa

         Amharic

            Birr (ETB)

Description Ethiopia on the globe (Africa centered).svg

OUR SERVICES;                      

  • Consultation (in person, online, phone)
  • Helping to prepare your documents
  • Start to finish your company registration process
  • Immigration services

Ethiopia

Ethiopia, officially the Federal Democratic Republic of Ethiopia, is a landlocked country in the Horn of Africa and the second most populous country on the African continent, with 115 million people, mostly Christians. Ethiopia is bordered by Eritrea, Sudan, South Sudan, Djibouti, Somalia and Kenya.
The most important export products of Ethiopia are coffee, vegetables and oilseeds, which are very popular.

General Questions 

What is the best type of company to operate?
Limited Liability Company (known as PLC)

How much is a corporate tax in Ethiopia?
30%

How much is VAT in Ethiopia?
15%

How much does it cost to register a company in Ethiopia?
$ 16.800 USD

What is the minimum capital required to register a company?
$ 200.000 USD

Do company executives should travel to Ethiopia to complete the company registration?
No need.

How long does it take to register a company?
12 weeks

Is it necessary to have an office physically to register a company?
Yes.

The benefit of company registration in Ethiopia

  • A limited liability company can be registered with one manager and two shareholders.
  • Managers and shareholders can be of any nationality.
  • Shareholders and directors do not need to travel to Ethiopia to register a company and complete the registration process.
  • Rapid economic growth in Ethiopia
  • Large market of 91 million people
  • Cheap specialist workforce
  • Investment opportunities in the fishing industry, agriculture
  • High government support for foreign investors
  • Customs exemption for import of machinery, raw materials, equipment and spare parts
  • 3-year tax exemption for domestic companies

The disadvantage of company registration in Ethiopia 

  • The minimum capital required to register a company is $ 200,000
  • To register a company, a manager must be hired.
  • All documents must be translated into the official language of the country.
  • High income tax 30%
  • Goods tax above 15%
  • Absence of the International Bank in Ethiopia
  • Corruption and bureaucracy in Ethiopia
  • Lack of quality infrastructure

Type of company registration

Limited Liability Company (LLC)
Public Limited Company (SC)
Branch Office
Representative Office

The company registration process

  • Submit company registration application to Ethiopia commercial office
  • Specify the company name and receive confirmation
  • Preparation and regulation of the company’s articles of association, including the name of the company, type of activity, names of shareholders and the amount of shares of shareholders, names of directors, address and telephone number of the company
  • Opening a bank account and depositing the company’s capital
  • Registration of the company and publication of an advertisement for starting a business in newspaper
  • File with the tax office and get a professional license
  • Prepare a stamp, letterhead
  • File a case with the Social Security Administration