Everybody engaged in commercial activity in Ethiopia needs to be registered. We have included here the regulations and procedures needed to obtain business license in Ethiopia and to register one's business in Ethiopia.
01The Commercial Code 1960 (provides the legal base for doing business in Ethiopia)Commercial Registration and Business Licensing Proclamation No. 67/1997 or 67/1989 EC
02Council of Ministers Regulations No. 13/1997 or 13/1989 EC on Commercial Registration and Business Licensing
03Council of Ministers Regulation No.14/1997 or 14/1989 on Addis Ababa Dire Dawa Administration Commercial Registration and Licensing.
These documents can be purchased at Berhanena Selam Printing Enterprise shop at Arat Kilo.
Business Registration and License Regulations in Ethiopia.
- Commercial Regsiter in Ethiopia
- Registration in the Commercial Register
- Application for registration
- Registration of trade name
- Business License
Business Registration and License Procedures in Ethiopia.
- Principal registration of a sole business person
- Principal registration of a foreigner considered as a domestic investor
- Principal registration of commercial partnership and co-operative society
- Principal registration of a Share Company
- Principal registration of a private limited company
- Summary registration
- Application to obtain a business license
- Issuance of a business license
- Renewal of a business license and penalty for failure to renew a business license
Business Registration and License Regulations in Ethiopia.
According to Article 4 of the Proclamation No. 67/1997 on Commercial Registration and Business Licensing, there are three commercial registers.
- Central commercial register administered by the Ministry of Trade and Industry;
- Commercial register, registered by the Ministry of Trade and Industry, in which is registered any person engaged in those commercial activities for which the Ministry issues licensees;
- Commercial register, administered by each Regional Bureau.
Registration in the Commercial Register:
- No person shall engage in any commercial activity unless registered in a commercial register;
- Any person shall principally register only once even though he carries on different commercial activities in different regions;
- Although a trade name is one of the entries of a principal registration as provided for under Article 105 of the Commercial Code, principal registration shall be made without waiting for the registration of a trade name under Proclamation No. 67/1997.
- A businessperson shall, before starting his commercial activity, apply for a principal or summary registration by completing and submitting to the appropriate authority the application form, prescribed by the regulations, to which he shall attach the necessary documents;
- An application for the alteration or modification of any entry of a commercial registration shall be made to the appropriate authority within two months from the occurrence of such a situation by completing the application form prescribed by the regulation;
- Where any application for principal or summary registration is found acceptable, the appropriate authority shall register the applicant and issue a certificate of registration on payment of the fee prescribed by the regulations.
- A trade name, according to article 135 of the Commercial Code of Ethiopia, is the name under which a person operates his business and which clearly designates the business.
- Any person who is engaged in commercial activities may have his trade name registered by completing the application form prescribed by the regulations at a place where he is principally registered;
- Any person who is applying for the registration of his trade name shall, with his application, submit to the appropriate authority:
- His commercial registration certificate and
- A valid business license.
The following is taken from Council of Ministers Regulation No.14/1997 or 14/1989 on Addis Ababa Dire Dawa Administration Commercial Registration and Licensing
Any person engaged in a commercial activity, the capital of which is more than Birr 5,000, is to obtain a business license by applying to the appropriate authority. Capital includes fixed assets and working capital put at the disposal of the business, but excludes the business premises unless the businessperson chooses otherwise.
Business Registration and License Procedures in Ethiopia.
Principal registration of a sole business person
Where the applicant is a sole businessperson he shall submit, amongst others, together with the application, in two copies:
- His recent passport size photograph;
- A prior business and operating license, if any;
- A power of attorney where an agent signs the application.
For a foreigner considered as a domestic investor
The foreigner shall, together with the application, submit, in two copies:
- His recent passport size photograph;
- Photocopy of the pages of his passport which indentify him and which indicate his legal entry into the country;
- Investment Permit
- Photocopy of residence permit
Principal registration of commercial partnership and co-operative society
Where the applicant is in a commercial partnership, he shall submit, in two copies, together with the application:
- A notice published in a newspaper pursuant to Article 8 of the Proclamation for Commercial Registration and Business Licensing, No. 67/1997;
- A power of attorney where an agent signs the application;
- The memorandum of association or the contract of partnership;
- (If there is a foreigner among the partners) Photocopy of the pages of his passport which indentify him and which indicate his legal entry into the country; Investment Permit
Where the applicant is a co-operative society, it shall, together with the application, submit the documents referred in the first and second points above.
Principal registration of Share Company
Where the applicant is a share company:
- The documents referred under Principal registration of commercial partnership and co-operative society
- A bank statement showing that the amount required to be deposited in a bank has been deposited in pursuant to Article 312 (1) (b) of the Commercial Code. (i.e. one quarter at least of the par value of the shares has been paid up and deposited in a bank, in the name and to the account of the company);
- A specimen of share certificates for each class of shares;
- A report of any contribution in kind, if any, drawn up in accordance with Article 315 of the Commercial Code;
- The documents referred to in Article 323 (2) of the Commercial Code; shall together with the application, be submitted, in two copies.
Principal registration of a private limited company
Where the applicant is a private limited company:
- The memorandum and articles of association;
- A notice published in a newspaper pursuant to Article 8 of the Proclamation for Commercial Registration and Business Licensing, No. 67/1997;
- A power of attorney where an agent signs the application;
- The memorandum of association or the contract of partnership;
- (If there is a foreigner among the partners) Photocopy of the pages of his passport which indentify him and which indicate his legal entry into the country; Investment Permit
- Any business person who is principally registered with the Ministry of Trade and Industry or any region shall be similarly registered when he/she opens a branch in the region;
- An application for summary registration pursuant to the first point above shall be submitted, in two copies, by completing the form prescribed in the schedule "B" of the Registration and Business Licensing Regulation No. 14/1997, together with the appropriate particulars provided for principal registration above and two copies of the certificate of principal registration.
Application to obtain a business license
Any person desiring to obtain a business license shall submit an application, in two copies, to the concerned bureau in the form prescribed in the schedule "C" of the Registration and Business Licensing Regulation No. 14/1997.The applicant, shall, together with the above application submit in two copies:
- a commercial registration certificate;
- his recent passport size photograph or the manger’s recent passport size photograph (where the applicant is a business organization);
- an investment permit and residence permit if the applicant is a foreigner who is considered as a domestic investor.
- The memorandum and articles of association or the contract of partnership (where the applicant is a business organization)
Issuance of a business license
The concerned Bureau issues business License within a period of five working days.
Renewal of a business license penalty for failure to renew a business license
- A business license shall be renewed within six months after expiry of the budget year in which the license has been issued or renewed upon payment of the appropriate fee prescribed by the Regulations.
- The holder of a business license who has failed to have it renewed within the time period stated above, shall have it renewed within the next three months (from 'Tir' 1 to 'Megabit' 30), by paying, in addition to the renewal fee, a penalty equal to 20% of such fee, for each month of delay;
- When the business license holder appears for the renewal of the license, he shall submit, in two copies, to the Bureau:
i. A statement regarding the payment of income tax and municipal service fees, endorsing the renewal of the license, issued by the Inland Revenue Authority or Finance Bureau, as may be appropriate;
ii. Application for the renewal of the license in the form
