Ethiopia Digitized E-Invest System
Ethiopia has a sizable domestic market and is the second-most populated nation in Africa after Nigeria. The country is once more emerging as a desirable location for foreign investment in East Africa and foreign-based businesses are looking towards Ethiopia to expand locally. According to Ethiopian legislation, foreign businesses planning to open offices here must register under the country’s commercial code.
The first stop for foreign companies looking to register their businesses is the Ethiopian Investment Commission (EIC). EIC, acting on behalf of the Ministry of Trade and Regional Integration (MoTRI), provides one-stop services for comprehensive registration. EIC has recently digitalized the business registration procedure through the new eInvest system, providing all services relating to business registration. The method of registration varies depending on the business structure in which investors intend to conduct business (Sole Proprietorship, PLC/Share Company/Joint Venture, Branch, and Multinational Company), but remains generally straightforward. The figure below summarizes key registration steps – all of which must be completed by those wishing to legally establish a business in Ethiopia. The exception is step 2, which only applies to business structures with the PLC, share company, or joint venture designation.
A company must determine the best business structure for its intended business before initiating the process and provide all required documents as listed on the eInvest website. The system allows for the input and uploading of all documentation. If the investor meets all conditions, registration confirmation should be received within one business day. It is important to note that certain Ethiopian government agencies have special licensing or registration requirements for business activities in the mining, aviation, Transport, Telecom, Water work, Banking, Insurance, Micro Finance, and Power sectors.
For more information on how to set up a company in Ethiopia or for a contact list of business registration consulting companies, please contact Commercial Assistant Siraj Mustefa at the U.S Commercial Service, U.S. Embassy, Addis Ababa, Siraj.Mustefa@trade.gov.