No.3 Xiu Shui Nan Jie
Jan Guo Men Wai
P. R. China
Under the Investment Proclamation No. 280/2002, Article 12, foreign investors,
foreign nationals (excluding Ethiopians by birth) taken for domestic investors,
domestic investors investing in areas eligible for incentives and domestic
& foreign investors making investments in partnership are required
to obtain investment permits from the Ethiopian Investment Authority.
To qualify for investment permit, an investor is required to submit the
， a completed application form obtained from the EIA;
， a project profile/business plan;
， a list of the type and quantity of machinery and equipment intended
to be exempted from import duties and taxes;
， a draft memorandum and articles of association in the case of a business
， in case of expansion or upgrading, a brief description of the same and
its implementation programme;
， in case of planned employment of expatriate staff , with the exception
of top management positions, a statement on the time and schedule for
their replacement by Ethiopians and the training programme designed for
such replacement; and
， a power of attorney in the case of submission of an application through
an agent and other relevant information relating to the particulars of
A foreign investor who intends to conclude a technology transfer agreement
related to the investment will be required to submit a draft agreement
to the Authority for approval and registration together with the application
to investment permit. The EIA approves and gives an investment permit
in 10 days if the above documents are received in full.
How To Set Up Business Organizations In Ethiopia
One-Stop-Shop: The EIA is a truly one-stop-shop for all foreign investment
matters in Ethiopia. In this regard, the EIA :
， provides necessary information required by investors;
， receives investment applications;
， approves and issues investment permits to foreign investors;
， provides registration services to newly incorporated business organizations;
， approves expatriate posts in an approved investment and issues work
permits to foreign employees;
， issues trade and operating license to approved foreign investment;
， facilitates the acquisition of land by foreign investors in accordance
with the relevant laws of the federal and regional governments; and
， renders other pre-and post-investment approval services.
As a result of the appropriate measures taken by the Federal Government
to organize EIA as a one-stop-shop for investors, cumbersome bureaucratic
procedures faced by investors have been eliminated.
Companies incorporating in Ethiopia may operate through a subsidiary (i.e.
incorporated under the Laws of Ethiopia) or through a branch (i.e. incorporated
under the laws of a foreign country).
Ethiopian company law recognizes the commercial company in various forms.
The most important types of business organizations are:
a) sole proprietorships;
b) branch offices of companies registered outside Ethiopia;
c) share companies;
d) private limited companies (PLC);
e) partnerships; and
The most widely used forms of companies are limited liability companies
or PLC's which are formed in conformity with the requirements of the Commercial
Code of Ethiopia of 1960.