Ethiopia
Corporate Guide
Are there any post-incorporation requirements that need to be satisfied in Ethiopia? For example, registrations for tax purposes or business licences.
Yes. After the incorporation stage, a company needs to secure a business licence to operate its business, and it should register for value-added tax (VAT) if its annual gross income exceeds ETB 1 million. After a successful registration, a company in Ethiopia needs to:
- Obtain a business licence
- Register for VAT (if income exceeds ETB 1 million)
- Prepare a company seal
- Install a cash registration machine
- Prepare a manual receipt for cash sales, withholding, etc.
Under Ethiopian commercial law, registering for a TIN precedes incorporation. Thus, a company will have its TIN before it obtains its commercial registration certificate.
The following are the general steps to applying for a TIN:
- Authenticated lease agreement
- Reserved company name
- Memorandum of association
- Passport copy of the general manager and two photographs of them
- Completed form
Note that there are no fees required to register for a TIN.
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If there is no requirement to have a local director or shareholder in Ethiopia, what is a foreigner required to do to register a company for tax purposes and other similar post-incorporation registrations?