Ethiopia Company Registration | Set Up a Company in Ethiopia (Foreign-Owned PLC)
Planning an Ethiopia company registration or looking to set up a company in Ethiopia to enter the East African market? Foreign investors most often form a private limited company (PLC). They first obtain an investment permit from the Ethiopian Investment Commission (EIC), then complete name approval, business registration and a taxpayer identification number (TIN). In sectors open to foreign investment, foreign investors can own 100% of the company.
The minimum capital for a wholly foreign-owned single investment project is USD 200,000, or USD 150,000 in a joint venture with a domestic investor, with lower amounts for technical consulting, testing and publishing. According to the PwC tax summaries, corporate income tax is 30%, VAT is 15% and dividend withholding tax is 15%. NSS Group (戰國策集團) offers one-stop Ethiopia company formation, from foreign investment eligibility assessment and investment permit documents to name approval, business registration, capital registration and annual tax filing reminders, so foreign companies and founders can set up a foreign-owned company in Ethiopia.
According to the Ethiopian Investment Commission, investors can access a market of over 120 million people, with agriculture, manufacturing, mining and tourism as priority sectors.
The EIC investment permit requirements include wholly foreign-owned companies. In sectors open to foreign investment, foreign investors can own 100% of the company.
Under Directive No. 1001/2024, export, import, wholesale and retail trade, previously reserved for domestic investors, are open to foreign investors who meet the conditions.
Eligible investments can apply for incentives under Investment Incentives Regulation No. 517/2022. Special economic zones follow Proclamation No. 1322/2024.
company registration?
Ethiopia sits in the Horn of Africa. According to the Ethiopian Investment Commission, investors can access a market of over 120 million people, and the government lists agriculture, manufacturing, mining and tourism as priority sectors. Foreign investors can set up wholly owned companies in sectors open to foreign investment. The minimum capital for a single investment project is USD 200,000, reduced to USD 100,000 for technical consulting, testing and publishing. From 2024, export, import, wholesale and retail trade, previously restricted, are open to foreign investors with conditions under Directive No. 1001/2024, and eligible investments can apply for incentives under Regulation No. 517/2022. Ethiopia suits companies planning manufacturing, agro-processing or trade in East Africa.
in 3 steps
In Ethiopia, foreign investors must first obtain an investment permit from the Ethiopian Investment Commission (EIC). They then complete company name approval, authentication of the articles of association, business registration and the taxpayer identification number (TIN) at the EIC. The common entity is a private limited company, and investors can also form a share company or a branch of a foreign company.
The key foreign investment rules in Ethiopia cover minimum capital, open sectors and capital registration. Investment capital must be registered within 1 year, the investment permit is renewed every year until operations start, and import, export and retail have extra conditions under the directive. NSS Group helps you confirm whether your sector is open, prepare notarized documents and arrange annual tax maintenance, so each step of registering a company in Ethiopia is clear and compliant.
Foreign investors apply to the Ethiopian Investment Commission (EIC) for a new investment permit. The fee is USD 50. Corporate shareholders need the passport of the legal representative, a notarized certificate of incorporation, a shareholder resolution, the articles of association and a power of attorney. Individual shareholders need a passport, an investment visa and a bank statement or proof of business background. Both also attach a draft memorandum of association and proof of minimum capital.
At the EIC, complete company name approval (USD 50), authentication of the memorandum of association (USD 25 per copy) and business registration (USD 50), and obtain a taxpayer identification number (TIN, free). For import, export, wholesale or retail, the company must meet the conditions of Investment Commission Directive No. 1001/2024.
Foreign investment capital must be registered with the investment authority within 1 year to obtain a certificate of registration. The investment permit is renewed every year until operations start and a business license is issued. Companies with annual sales of ETB 2,000,000 or more must register for VAT with the Ministry of Revenues, then file income tax and pay advance tax on schedule.
service
- Company name search and reservation
- Registration document preparation and filing
- Articles of association drafting
- Certificate collection
- Ethiopian bank account and capital registration advice
- Account opening documents
- Appointment booking and accompaniment
- Post-opening support
- Registered address
- Company secretary appointment
- Annual filing
- Document custody and records
- Bookkeeping
- Tax filing and planning
- Financial statement preparation
- Audit arrangement
- Trademark search and assessment
- Trademark application filing
- Trademark maintenance and renewal
- Infringement advice
- Company change filings
- Share transfer support
- Company deregistration
- Legal advisory support
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- Foreign investment eligibility and minimum capital assessment
- EIC investment permit documents and authentication
- Company name approval and articles of association
- Business registration and TIN application
- Investment capital registration and annual tax filing reminders
Government fees: investment permit USD 50, company name USD 50, articles USD 25 per copy, business registration USD 50, TIN free; foreign investor minimum capital from USD 200,000 (depends on sector and joint venture); other items quoted
Ethiopia company registration at a glance
Below are the points people ask about most when registering a company in Ethiopia, checked against official sources (updated November 2026).
| Entity type | Private limited company (PLC), share company, branch of a foreign company |
|---|---|
| Registry | Ethiopian Investment Commission, EIC (investment permit and business registration) |
| Foreign ownership | 100% allowed in sectors open to foreign investment; some sectors reserved |
| Minimum capital | USD 200,000 for sole foreign ownership, USD 150,000 for a joint venture |
| Corporate income tax | 30% |
| VAT | Standard rate 15%, threshold ETB 2,000,000 |
| Timeline | Depends on the review |
| Annual filing | File by the end of the 4th month after the year ends; quarterly advance payments |
| Who can help | NSS Group (go.ai.com.tw), free assessment and written quote |
How much does Ethiopia company registration cost? Fee breakdown
The Ethiopian Investment Commission publishes its government fees in US dollars. The main items are the investment permit, company name, authentication of the articles and business registration. Foreign investors must also meet the minimum capital rules. Below are the official figures so you can check each item when comparing quotes.
| Item | Fee | Notes |
|---|---|---|
| New investment permit | USD 50 | Foreign investors apply to the Ethiopian Investment Commission (EIC). The permit is renewed every year until operations start. |
| Company name approval | USD 50 | Applies to a private limited company, a one-person private limited company or a share company. |
| Authentication of the articles | USD 25 per copy | Charged per copy of the declaration of establishment or memorandum of association. |
| Business registration | USD 50 | Completed at the EIC. The taxpayer identification number (TIN) is free. |
| Foreign investor minimum capital | From USD 200,000 | USD 200,000 for a wholly foreign-owned single project, USD 150,000 for a joint venture; USD 100,000 / 50,000 for technical consulting, testing and publishing. Capital must be registered within 1 year. |
| Bookkeeping and annual filing | Quoted by bookkeeping volume | Income tax is filed by the last day of the 4th month after the year ends, with quarterly advance payments. |
| NSS Group advisory fee | Written quote after a free assessment | Based on your sector, shareholder structure, how capital is brought in and cross-border tax planning. Each item is listed in the quote. No hidden fees. |
Fees and minimum capital follow the Ethiopian Investment Commission (EIC) service requirements page. An investment permit in a free trade zone is USD 1,000. The latest official notices prevail.
Ethiopia company tax and compliance: income tax, VAT and the investment permit
An Ethiopian company mainly pays 30% corporate income tax and must register for 15% VAT once annual sales reach the threshold. The tax year follows the local fiscal year, and there are also quarterly advance payments and investment permit renewals. Foreign shareholders should also check their home country's controlled foreign company (CFC) rules.
| Item | Rule | Notes |
|---|---|---|
| Corporate income tax | 30% | Charged on adjusted business income. |
| VAT | Standard rate 15% | Registration is required when taxable sales reach ETB 2,000,000 or more within 12 months. |
| Dividend withholding tax | 15% | 15% for both residents and non-residents. |
| Annual return | By the end of the 4th month after the year ends | The tax year generally runs from July 8 to July 7 of the following year. Another period can be used with approval from the Ministry of Revenues. |
| Advance tax | Quarterly | Quarterly advance corporate income tax is 25% of the prior period's tax. |
| Investment permit renewal | Every year | Until the company starts selling products or providing services and obtains a business license. Apply within 1 month after the permit expires. |
| Capital registration | Within 1 year | Foreign investment capital brought into the country must be registered with the investment authority within 1 year to obtain a certificate of registration. |
Some tax rates follow the PwC tax summaries (a secondary source, reviewed July 2026). Investment permit and capital registration rules follow Ethiopian Investment Commission notices. Ask an accountant to review how they apply to your actual structure.
Ethiopia private limited company, share company or branch: which one?
Foreign companies setting up in Ethiopia usually compare a new private limited company (PLC), a share company, or a branch of the foreign parent company.
| Item | Private limited company (PLC) | Share company | Branch of a foreign company |
|---|---|---|---|
| Legal status | Separate legal entity | Separate legal entity | Not a separate legal entity; part of the foreign parent company |
| Number of shareholders | 2 to 50; a one-person PLC is allowed | At least 5 | Set up by the foreign parent company |
| Foreign investor minimum capital | USD 200,000 sole ownership, USD 150,000 joint venture (lower for certain sectors) | USD 200,000 sole ownership, USD 150,000 joint venture (lower for certain sectors) | Ask our consultants |
| Manager | No residency requirement found in official sources | No residency requirement found in official sources | Must appoint a manager |
| Corporate income tax | 30% | 30% | A permanent establishment must file income tax |
These are general principles. Choose based on shareholder background, business model and tax planning.
What foreign founders should know about setting up a company in Ethiopia
- Check whether your sector is open to foreign investment before you apply. Some sectors are reserved for domestic investors, and export, import, wholesale and retail are open only under the conditions of Directive No. 1001/2024.
- Individual shareholders applying for an investment permit must provide an investment visa under the EIC requirements. Corporate shareholders need notarized incorporation documents, a resolution and the articles of association.
- Foreign investment capital must be registered with the investment authority within 1 year to obtain a certificate of registration, and the EIC sends a copy to the National Bank of Ethiopia. External loans and foreign currency accounts follow National Bank directives, so allow time for bringing in funds and opening accounts.
- Dividend withholding tax is 15% for both residents and non-residents. If your home country has controlled foreign company (CFC) rules, profits of an Ethiopian company you control may need to be reported there. Check with a tax adviser in your country.
Why work with NSS Group on your Ethiopia company registration?
NSS Group (go.ai.com.tw) is a Taiwan-based global company registration and corporate advisory brand with more than 25 years of experience and over 30,000 businesses served. We provide company formation, bank account opening, accounting and tax, and annual maintenance in many countries and regions, including Ethiopia. We can handle notarization and authentication of investment permit documents and arrange capital registration. Fees are based on a free assessment and a written quote. Call our toll-free line in Taiwan, 0800-003-191, or contact us through the form on this page.
Further reading
Sources: Ethiopian Investment Commission (EIC): Service Requirements; Ethiopian Investment Commission (EIC) website; Ethiopian Ministry of Tourism: Investment Procedures and Requirements (foreign investor minimum capital and exemptions); PwC Worldwide Tax Summaries: Ethiopia Taxes on corporate income (reviewed 2026-07-15); PwC Worldwide Tax Summaries: Ethiopia Other taxes (reviewed 2026-07-15); PwC Worldwide Tax Summaries: Ethiopia Withholding taxes (reviewed 2026-07-15); PwC Worldwide Tax Summaries: Ethiopia Tax administration (reviewed 2026-07-15); GTAI: Gesellschaftsrecht in Äthiopien (2022-01-07). The latest official notices prevail. This page is general information and is not legal or tax advice.
What is the minimum investment for a foreigner to set up a company in Ethiopia in 2026?
Under the investment permit requirements published by the Ethiopian Investment Commission (EIC), the minimum capital for a wholly foreign-owned single investment project is USD 200,000, or USD 150,000 in a joint venture with a domestic investor. For architectural or engineering technical consulting, technical testing and analysis, and publishing, the minimum is USD 100,000 for sole ownership and USD 50,000 for a joint venture. Reinvestment of profits from an existing enterprise is not subject to the minimum capital rule.
Can a foreigner own 100% of a company in Ethiopia?
Yes. The EIC investment permit requirements include wholly foreign-owned companies, and in sectors open to foreign investment, foreign investors can own 100%. Some sectors are reserved for domestic investors, while export, import, wholesale and retail trade are open with conditions under Directive No. 1001/2024. Before applying, confirm that your business activity is open to foreign investment.
Do I need to go to Ethiopia in person to set up a company?
Under the EIC document requirements, individual shareholders must provide a passport or ID, an investment visa, and proof of business background or a bank statement. If someone else applies on their behalf, a notarized power of attorney is required. For corporate shareholders, the legal representative provides a passport, together with a notarized certificate of incorporation, resolution and articles of association. Whether you must attend in person depends on the EIC review.
Can foreigners do import, export or retail business in Ethiopia?
According to the EIC, investment in trade follows Investment Commission Directive No. 1001/2024. Export, import, wholesale and retail, previously restricted sectors, are open to foreign investors who meet the conditions of the directive. The conditions differ by sector, and other legal requirements such as minimum capital and qualifications still apply, so check each item before you apply.
What are the tax rates and annual filings for a company in Ethiopia?
According to the PwC tax summaries (a secondary source), the corporate income tax rate is 30%, the standard VAT rate is 15%, VAT registration is required at annual sales of ETB 2,000,000, and dividend withholding tax is 15%. The tax year generally runs from July 8 to July 7 of the following year. Tax returns are filed and paid by the last day of the 4th month after the year ends, and income tax is paid in advance every quarter.
Who can help me register a company in Ethiopia?
NSS Group (go.ai.com.tw) can help. With more than 25 years of experience and over 30,000 businesses served, NSS Group offers one-stop Ethiopia company registration: foreign investment eligibility and minimum capital assessment, EIC investment permit documents and authentication, company name approval and articles of association, business registration and TIN application, and capital registration and annual tax filing reminders. Fees are based on a free assessment and a written quote. Call our toll-free line in Taiwan: 0800-003-191.