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Ethiopia is the 2nd populous landlocked state in the African continent, located in the Horn of Africa. Also, it is world's most populous landlocked country.
If you want to establish a company in Ethiopia and open an African bank account, then take a look at the following:
- Capital: Addis Ababa;
- Population: over 109 million people;
- More than 11 state languages, including Arabic and English;
- Currency: birr (ETB). 1 USD is approximately 31,6 ETB;
- The country is a member of the League of Nations, African Union, ACP;
- 6 neighbouring countries, including one disputed territory of Somaliland;
- Ethiopia is one of the fastest growing economies in the world;
- Wholly foreign ownership is allowed.
If you are interested in this jurisdiction, you can receive personal advice on business organization process in Ethiopia from YB Case specialists.
Best uses for an Ethiopian company
When planning to open a business in Ethiopia, please take into account the following possible solutions:
- Registering an agricultural company in Ethiopia (coffee, cereals, oilseeds, cotton, sugarcane, potatoes, kat, flowers);
- Setting up a gold mining company in Ethiopia;
- Opening an Ethiopian telecommunication company;
- Registering a food production company in Ethiopia (meat products, beverages);
- Setting up an Ethiopian transport company;
- Opening a production company (textiles, leather products, agro-processing).
Also, the government is interested in attracting foreign investment in the financial sector and light industry.
Business entity types and taxation
Those, who are intended to set up a company in Ethiopia remotely and open an account with an Ethiopian bank, must consider the following legal forms:
- LLC;
- National PLC;
- Joint Venture company;
- Free Zone LLC;
- PLC (Agro-business setup company).
|
Legal form |
Corporate tax |
VAT |
Minimum share capital |
|
LLC |
30% |
15% |
200 000 USD |
|
National PLC |
30% |
15% |
200 000 USD |
|
JV |
30% |
15% |
150 000 USD |
|
FZ LLC |
0% for first 2-4 years, 30% thereafter |
15% |
200 000 USD |
|
PLC (Agro-business) |
30% |
15% |
200 000 USD |
Also, you can register a branch in Ethiopia with a corporate tax of 30% and a representative office.
Registration requirements
In order to start a business in Ethiopia remotely, you will need the following:
- Two shareholders and directors (of any nationality);
- Local registered office;
- Annual financial statements;
- Terms of registration: 5 weeks.
There are no requirements for an audit.
How to open a business in Ethiopia
If you decide to register a company in Ethiopia remotely and open an account for an Ethiopian company, our experts propose you to consider these most reliable banks:
- United Bank;
- Dashen Bank;
- Bank of Abyssinia;
- Commercial Bank of Ethiopia;
- Awash International Bank.
If you want to run a business in Africa, then we recommend that you ask for individual advice on company registration process in Ethiopia from YB Case lawyers.
Also, we are ready to provide you with legal assistance in corporate account opening with an African bank and local office registration.
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