Setting Up New Business in Ethiopia

A Hot Tip about Taxes and Accounting in Ethiopia

Last updated: 11 Apr 2011

Do you want to start a new business in Ethiopia? Here is the basic information you should know.
1st Checking the Company’s Name. The company’s name must be checked for its uniqueness which takes one day.
2nd The applicants are also expected to Authenticate Their Memorandum And Articles Of Association At The Office For Authentication And Registration Of Documents And Put Their Signature Before The Same Office. The process takes only two days. The office for authentication and Registration of Documents serves mainly to provide notary public services.
The applicants appear in person at the appointed date, with an original copy of their letter of appointment (power of attorney and valid identity card. Various offices check the validity of the documents, the authenticity of the Signatures, and the genuineness of the identity cards. The Memorandum and articles of association are readied for signature. The applicants sign the documents in front of an officer.

3rd Obtaining a Business License with the Ministry of Trade and Industry will take one day. The fees for registration of the Memorandum and Articles of Association depend on the company’s registered capital.
4th The applicant must register With the Inland Revenue Authority for Income Tax and Withholding Tax for Employees. This will take two days.
5th Finally, the Company’s Seal Must Be Made which takes three days to complete.

The office for authentication and Registration of Documents serves mainly to provide notary public services. The applicants appear in person at the appointed date, with an original copy of their letter of appointment (power of attorney and valid identity card. Various offices check the validity of the documents, the authenticity of the Signatures, and the genuineness of the identity cards. The Memorandum and articles of association are readied for signature. The applicants sign the documents in front of an officer.

A newly established firm must register for income tax, payable at the end of the company’s fiscal year, and pay municipal and license renewal fees and with holding taxes on their employees. Once registered, the tax identification is provided.

If you have an additional question or comment please  Contact us.

Any pertinent information about investment in Ethiopia, tax in Ethiopia, can be available from an Ethiopian Investment Lawyer, Ethiopian Tax lawyer, Ethiopian, Ethiopian Employment Lawyer, Ethiopian Labour Relationships Lawyer, Ethiopian Immigration lawyer.
 


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Posted: 11 April 2011, last updated 11 April 2011

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