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Investment Registration

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The  minimum capital required of  a foreign investor   is US$  100  thousand per project.  However, if   a  foreign investor   invests  in  partnership with   domestic investor(s). the  minimum capital required of him is US$ 60 thousand per  project. The  minimum capital  required of  a foreign investor   investing in  areas   of engineering, architectural or other technical consultancy services,  accounting and audit services,  project studies  or  business  and management consultancy services   and publishing is US$ 50  thousand where the  ownership fully  foreign owned, and US$ 25 thousand where the investment is made jointly with domestic partner(s).

A foreign investor  reinvesting his profits  or dividends or exporting of at least 75 percent of his outputs is not  required to allocate a minimum capital An  individual investor  may  also  invest  as  a  sole  proprietor. with   full  equity ownership. Areas open  for joint-venture investment with the Government are the manufacture of weapons and  ammunition and  telecommunication services. Otherwise, the law encourages joint ventures with Ethiopian individuals and companies.    Investment  can also  be  effected through  business organization incorporated in Ethiopia  or locally  registered branch companies, public enterprises and  cooperatives established in accordance with  the relevant laws.

As the requirement, a  foreign  investor  should  obtain investment permit  first by submitting  a properly filled application form with the required documents such as a draft memorandum and articles of associations in case an application is made by  a business organization, and  a power  of attorney in case  the application is made through  an  agent . Where  the  application is to  establish  as a  branch company in Ethiopia, the applicant is required to submit the following documents.

  • legal certificate of  incorporation in the country  of origin;
  • notarized document of the memorandum and article  of association;
  • a decision stating the organization's intent  to invest in Ethiopia, together with the amount of capital allocated for the purpose; and
  •  power of attorney to the appointed agent in Ethiopia.

Upon receiving in full the authenticated documents listed above together with properly filled investment application form, the investment permit  and company registration certificate will be issued within 4 hours.

The Main  Department for Immigration and  Nationality Affairs issues a residence permit   to  a  foreign  investor, upon  the  submission  of  his investment permit. A foreign  investor, who is a share holder  of a company or a branch company and an expatriate staff who has a work permit, are also entitled to a residence permit.

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