Ethiopia is Africa’s 9th largest economy and 2nd biggest population of about 100 Million people.
The Ethiopian economy has grown at an average of 10% since 2010 and in 2012 Ethiopia was the Fastest Growing Economy in the world, Managing to grow faster than other African Countries Such as Rwanda, Mozambique, Zambia and Ghana, As well as China and India.
Addis Ababa is also the main air hub for Africa and the home of Ethiopian Airlines, which has won repeated recognition as the best airline in Africa. Ethiopian products have duty-free, quota-free access to the U.S. and EU markets under the African Growth and Opportunities Act (AGOA) and the Everything But Arms
(EBA) initiative, respectively. Ethiopia enjoys also preferential access to key markets like Australia, Canada, Japan, New Zealand, Norway, Switzerland, China, India, Russia, the Republic of Korea, and Turkey.
Ethiopia Majorly exports Coffee, Oil seeds, leather and leather Products, Pulses, meat and Meat products, Fruits, Vegetables, Live animals, Gold, Flowers and Electricity. The Major Export destination of Ethiopian Products include Europe 34 %, America 7%, Africa 20%, and Asia 37 %.
Major Imports to Ethiopia include the following; Fertilizers, Fuel, Petroleum products, Capital Goods and Consumer goods. The percentages of this imports by origin is as follows Asia 62%,Europe 25% America 8% Africa 4%.
The Tax Regime in Ethiopia is Quite Straight forward with the Tax rate for personal Income ranging from 0 to 35 %, Corporation Tax is at 30% and Vat at 15%.
For over 1 decade now, East Africa Business Consultants Has assisted many clients with the following Key Company Set Up Services in Ethiopia;
|Entity||Subsidiary Company||Branch Company|
|How Long does the Company registration process Take?||20 Days||20 Days|
|How long Does it take to Open Bank Account?||5 Days||5 Days|
|After how Long can you Invoice and Hire||25 Days||25 Days|
|Minimum Number of Directors and Shareholders||2||–|
|Foreigner Can own the Company 100%||Yes||Yes|
|Can the entity hire expatriate staff||Yes||Yes|
|Tax Identification Registration required||Yes||Yes|
|Access to Ethiopia’s double Tax treaties||Yes||Yes|
|Can bid for Government Contracts?||Yes||Yes|
|Can Secure Trade Finance?||Yes||Yes|
|Can Secure an Import and Export Licence?||Yes||Yes|
|Can Easily Convert into a PLC?||Yes||No|
|Can Secure Work permits for foreign Employees and Directors?||Yes||Yes|
|Multi Currency Bank Accounts Available?||Yes||Yes|