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Business License

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A valid business license is a business license issued or renewed in a particular budget year or for which the renewal time without penalty has not lapsed.

Obtaining a Business License

  • Business license is issued after the issuance of tax identification number and commercial registrations.
  • No person shall carry on any commercial activity without obtaining a valid business license.
  • A business person, who has registered the address of his branch office, shall not be required to obtain another business license for the same commercial activity for which he opened a branch.

Application for a Business License

Any person desiring to engage in a commercial activity shall submit to the appropriate authority application for business license by completing an application form. For further detail on documents to be submitted Commercial Registration and Business Licensing Proclamation No 686/2010).

Rights and duties of a Business person holding a business license
Any person to whom a business license has been issued have the following rights and duties፡

  • may carry on any commercial activity so long as such activity is with in the scope of the field of activity for which the license is issued, abide by the prohibitions and restrictions imposed by law, and depending on the type of commercial activity he is engaged in, to supply goods and services to consumers and users or to manufacture goods;
  • shall carry on the businesses for which business licenses have been issued in separate places or premises, where carrying on such activities at the same place or premise endangers public health and safety or property;
  • shall not concurrently, carry on different activities where doing so entails damage to the consumers or customers; or gives rise to conflict of interests;
  • shall display a price list for his goods and services by posting such list in a conspicuous place in his business premise or by affixing price tags on the goods;
  • shall comply with what the nature of the business demands and render service as directed by public notice;
  • shall display his business license in a conspicuous place within the business premise;
  • shall not assign the business license to the benefit of any person or pledge or lease ;

Validity period and renewal of Business license
A business shall be valid unless cancelled on the grounds specified under the relevant laws and as long as it is renewed within four months after the expiry of the budget year in which the license has been issued or renewed upon payment of the appropriate fee.

Issuance of a Substitute Business License

  • Any person who has his business license lost or damaged may obtain a substitute by
  • Applying in writing to the appropriate authority, which issued the license.
  • When a request for a substitute business license is made, a tax clearance statement given from the tax collecting office shall be submitted.
  • A business person whose license is damaged shall return it when he applies for a substitute.
  • The appropriate authority to which application for a substitute business license is submitted under sub article (1) of this Article, shall issue to the applicant a substitute upon payment of fee prescribed by the regulations and upon signing a liability undertaking for the lost business license by the applicant.
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