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Frequently Asked Questions

Frequently Asked Questions

Based on Regulation 270/2012 there are specific areas in which  investment is encouraged.  These areas collectively  act as a so called “positive list”. If your investment area is not listed a request can be submitted to the Investment Board. Please contact the ENLBA or the Embassy for the procedure.

Please note that  some area’s may not be open to foreign investment

 

Click here for the list of investment areas open for foreign investment.

Click here for Regulation 270/2012.

The members of the ENLBA manage a database of recommended service providers; however this database is only accessible to ENLBA members. For some services however, the Embassy may be able to provide recommendation.

We are more than willing to provide you with any information, but to determine who would be able to assist you accordingly, please fill out this form.

There are 3 main types:

  1. A sole business person: the business is owned by one person. Some of the   advantages are: it's easier to start and close and the tax paid will be less if the annual profit is less than Birr 150,000.
  2. Private Limited Company: Can be formed by a minimum of 2 and a maximum of 50 persons. It is advantageous for high profit making businesses and it can be managed in a structured way, but it's difficult to close the business.
  3. Share Company: Can be formed by a minimum of 5 persons. A minimum capital of Br. 50,000 is needed to set up a Share Company. The minimum price a single share can have is Br. 10.

Other legal entities include the different  partnership forms and the joint venture.

According to investment Proclamation, a Domestic investor is an Ethiopian or a foreign national permanently residing in Ethiopia having made an investment, and includes the Government, public enterprises as well as a foreign national, Ethiopian by birth and preferring treatment as a domestic investor. A Foreign investor is a foreigner or an enterprise owned by foreign nationals, having invested foreign capital in Ethiopia, and includes an Ethiopian permanently residing abroad and preferring treatment as a foreign investor     

Currently issuance of domestic status for foreign investors in on hold.

According to Regulations No. 84/2003 or 84/1995 EC  and its amendment 146/2008 or 146/2000 EC, Import trade (excluding LPG, bitumen and up on the approval of the Council of Ministers) in Ethiopia is exclusively reserved for domestic investors.

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