14 steps to incorporating in Ethiopia in 2024

Incorporation of a company in Ethiopia is fairly straightforward. The average timelines to complete each step of the engagement can be found on this timeline page. Our Clients will not have to travel to the country as our Ethiopia incorporation agent will complete all procedures on their behalf. The typical procedures for formation of a business in Ethiopia are as follow:

PRE-INCORPORATION STEPS

1. Consultation – Before proceeding with Ethiopia company incorporation, Healy Consultants Group expects Clients to i) sign and email-return our engagement letter ii) settle the fees applicable to the engagement and iii) provide all the documents requested for our due diligence checks;
2. Corporate structure: Our team and the Client agree on the following: i) proposed business activity ii) proposed company names iii) share capital requirement and iv) operations license requirements;
3. Power of attorney: Healy Consultants Group emails our Client the draft power of attorney document (in Amharic) for their signature, legalization and courier return;
4. Name search: Our team thereafter i) performs a company name search with the Ministry of Trade and Industry ii) reserves the available name for the Client’s company and iii) obtains confirmation letter;
5. Lease agreement: Healy Consultants Group assists our Client to secure an office space in Ethiopia, settle the rental fees and proceeds to sign a lease agreement;

INCORPORATION STEPS

1. Incorporation documents: Healy Consultants Group prepares and emails our Client i) the Memorandum and Articles of Association and ii) shareholders and directors consent forms (in English and Amharic) for their signatures;
2. Authorization: Our team prepares and presents i) all the necessary company documents ii) lease agreement and iii) Client due diligence documents and iv) power of attorney at the Documents Authentication and Registration Office (DARO) for verification and authentication;
3. Tax registration: Healy Consultants Group then applies for and obtains the Tax Identification Number (TIN) certificate income from the Ethiopian Revenue and Customs Authority;
4. Capital account opening: Our team i) submits all the required company documents to the Ministry of Trade and obtain an account opening letter ii) assists our Client to open a business bank account in Ethiopia with the approved commercial bank and deposit the required capital of US$200,000;
5. Company Incorporation: Our team i) presents evidence of capital injection and all the company documents ii) registers the company at the Ministry of Trade iii) obtains the Commercial Registration certificate;

POST-INCORPORATION STEPS

1. Business License application: Healy Consultants Group submits the new company registration documents at the Ministry of Trade and obtains a business license;
2. VAT and social security registration: Our team then proceeds to i) register the new company for VAT and ii) registers our Clients employees with the Private Organizations Employees Social Security Agency (POESSA);
3. Sales Machine Register: If required, our team assists our Client to purchase and install a sales register machine from a Government certified supplier in order to comply with VAT tax obligations;
4. Engagement Completion: The Client engagement is now complete. Healy Consultants Group couriers to our Client’s preferred international address, the complete company kit including i) original corporate documents ii) an unopened bank correspondence and iii) Client engagement feedback survey.