Ethiopia
Corporate Guide

What is the legislation that governs companies in Ethiopia?

The Commercial Code of the Federal Democratic Republic of Ethiopia (Proclamation No 1243/2021) is the main source of legislation that governs companies in general. Furthermore, the Commercial Registration and Licensing Proclamation No 980/2016 and the Commercial Registration and Licensing Council of Ministers Regulation No 392/2016 set out the procedure for how the different types of companies are registered and licensed. Directive No 935/2022, A Directive to Provide for Commercial Registration, Licensing and Post-Licensing Inspection, was issued to establish a uniform practice of commercial registration and business licensing as well as post-licensing inspection across the nation by creating a conducive environment for doing business by providing cost-effective, efficient and accessible commercial registration and business licensing services with the support of modern technology and efficient data management.

In addition, the Ethiopian Investment Proclamation No 1180/2020 and Investment Regulation No 474/2020 apply to fully or partially foreign-owned companies. Furthermore, the Public Enterprises Proclamation No 25/92 applies to government-owned corporations.