DOING BUSINESS & COMPANY REGISTRATION IN ETHIOPIA

Ethiopia at a Glance

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;

  • Company registration in Ethiopia
  • Government Licenses Processing
  • Business Bank Account Opening
  • HR Recruitment and Management
  • Work Permit Processing
  • Apartment/Office/Warehouse Sourcing.

Company Registration in Ethiopia Summary Table

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

 

Kindly Click Here To Contact Us For Additional information on Company Registration in Ethiopia or to Request for a Quotation.

 


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