Description 

Investment information service is a key support service provided by the Ethiopian Investment Commission to avail current, accurate, and comprehensive information to potential and existing investors. It is designed to help investors to make informed decisions and navigate the investment environment in Ethiopia with confidence.

A new investment permit is required for a domestic or foreign investor to establish and operate a new investment project in Ethiopia in line with the national priorities.

For wholly Foreign owned Company, the minimum capital requirement is USD 200,000 (USD 100,000 If it is Architectural or Engineering works or Related Technical Consultancy Services, technical testing and Analysis or in Publishing)

For Joint Venture Company, the Minimum Capital requirement is USD 150,000(USD  50, 000 If it is Architectural or Engineering works or Related Technical Consultancy Services, technical testing and Analysis or in Publishing).

However, the requirement for trade sector will be as per the Ethiopian Investment Board Directive No.1001/2024 to Regulate Foreign Investors’ Participation in Restricted Export, Import, Wholesale and Retail Trade Investments. Also, for SEZ and free trade zone, the requirement will be as per the Special Economic Zone Proclamation No.1322/2024.

Requirement

Sole Proprietorship 

• Valid Passport/ID
• Valid Investment Visa
• Business background/ Bank Statement
• Minimum Capital Requirement as per the Investment Law
• If it is By Representative notarized power of Attorney

Branch Company

• Valid Passport/ID of the legal representative
• Notarized Certificate of Incorporation
• Notarized Minute of Resolution
• Notarized MOA/AOA/ Relevant document
• Notarized Power of Attorney
• Minimum Capital Requirement as per the Investment Law

One Member Private Limited Company

• For Individual as Shareholder
• Valid Passport/ID
• Valid Investment Visa
• Business background/ Bank Statement
• Minimum Capital Requirement as per the Investment Law
• If it is By Representative notarized power of Attorney
• Draft Declaration Form and Nominee Letter

For a Company as a Shareholder

• Valid Passport/ID of the legal representative
• Notarized Certificate of Incorporation
• Notarized Minute of Resolution
• Notarized MOA/AOA/ Relevant document
• Notarized Power of Attorney
• Minimum Capital Requirement as per the Investment Law
• Draft Declaration Form and Nominee Letter

Private Limited Company/Share company

    For Individual as Shareholder

• Valid Passport/ID
• Valid Investment Visa
• Business background/ Bank Statement
• Minimum Capital Requirement as per the Investment Law
• If it is By Representative notarized power of Attorney
• Draft Memorandum of Association

    For foreign Company as a Shareholder

• Valid Passport/ID of the legal representative
• Notarized Certificate of Incorporation
• Notarized Minute of Resolution
• Notarized MOA/AOA/ Relevant document
• Notarized Power of Attorney
• Minimum Capital Requirement as per the Investment Law
• Draft Memorandum of Association

    For Local Company as a Shareholder

• Valid Passport/ID of the legal representative
•  Commercial Registration Certificate
• Notarized Minute of Resolution
• Notarized MOA/AOA/ Relevant document
• Notarized Power of Attorney
• Evidence for contribution in cash or in Kind 
• Draft Memorandum of Association

Any foreign investor bringing investment capital into the country shall have such capital registered by the Ethiopian investment commission within one year and obtain certificate of registration. This process ensures that the capital is legally recognized and qualifies for investment protection, repatriation rights and incentives under the investment law.

Requirement

For Cash 

• Bank Credit Advice

For in Kind

• Ethiopian Electronics Single Window duty free Approval Letter
• Commercial Invoice
• Customs Declaration

For Profit

• Audit Report
• Confirmation Letter from National Bank of Ethiopia

For Registration of Cancelled Loan as a Capital

• Bank Credit Advice
• Confirmation of loan cancelation Letter from National Bank of Ethiopia

Technology transfer is the transfer of systematic knowledge for the manufacture of a product, the application or improvement of a process or for rendering service, including management and technical know-how as well as marketing technologies, but may not extend to transactions involving mere sale or lease of goods.

  Requirement

• Technology Transfer Agreement concluded between the recipients and Technology provider and registered with notary public.
• Valid Business license/investment permit of technology recipient
• Commercial registration certificate/business license/document ascertaining ownership of technology provider.

For Extension Technology Transfer Agreement Registration

•  The extension of Technology Transfer Agreement concluded between the recipients and Technology provider and registered with notary public.
• Valid Business license/investment permit of technology recipient
• Commercial registration certificate/business license/document ascertaining ownership of technology provider.

Bill of Quantity

• Title deed
• Construction Permit
• Approved BOQ with support letter from Construction office
• Valid business and competence certificate of the consultant

New investors or an investor expanding or upgrading existing investment engaged in one of the areas of investment eligible for incentive, as per Investment Incentive Regulation, may import duty free construction materials necessary for the establishment of a new investment or the expansion or upgrading of an existing investment. It is expected by the investor to submit bill of quantity for the verification of the construction materials.

Spare parts

To import spare parts, the value of which is not greater than 15% of the total value of the capital goods, within five years from the date the investor becomes eligible for the incentives or from the date the business license is issued. The period in which spare parts shall be imported free of duty as per Investment Incentive Regulation shall not in any way exceed a total of five years.

 Requirement

• Approved duty-free letter for capital goods.

Raw Materials for commissioning

Investors who are engaged in the manufacturing sector need raw materials to test machinery and equipment and thereby train their employees prior to the issuance of business license. For training purposes only raw materials will be allowed for a minimum of one week and a maximum of one month depending on the type of project duty free importation of raw materials as per Investment Incentives Regulation No. 517/2022 as amended.

Requirement

•  Commercial invoice 

Income Tax Holiday

Any investor who invested in a new business shall be entitled to income tax exemption as per the Investment Incentives Regulation. 

• Investment Permit
• Valid Business License
• Commercial registration
• TIN certificate
• VAT Certificate
• Title deed or factory shed rent Agreement.

Additional Income Tax Holiday for investors exporting products or services

Any investor who has invested outside of SEZ and who exports or supplies to an exporter as a production or service input, at least 60% of his products or services shall be entitled to a one-time income tax exemption for two years in addition to the exemption provided for in the schedule attached to the Investment Incentive Regulation.

An investor who has invested within a SEZ shall be entitled to a one time income tax exemption for two years in addition to the exemption provided for in the schedule attached Regulation provided that investor exports 80% or above of the product from his manufacturing industry or supplies as production input to an investor who exports his products

• Export performance from customs Commission
• Previous Tax holiday Letter
• External Auditor performance Report
• Valid Auditor license and Competence Certificate
• Investment Permit
• Business license
• Commercial registration Certificate
• VAT Certificate
• TIN Certificate

. Income Tax Holiday for Expansion

An investor engaged in expanding or upgrading existing enterprises shall be entitled to income tax exemptions as per the Directive to Provide for the Application of Tax Incentives for Expansion/Upgrading of Investment No. 941/2023.

• Expansion Investment Permit
• Business License for the expansion
• Valid Auditor license and Competence Certificate
• External Auditor performance Report
• VAT Certificate
• TIN Certificate
• Valid Auditor license and Competence Certificate

Loss Carried Forward

An investor who has incurred loss within the period of income tax exemption shall be allowed to cany forward such loss for half of the income tax exemption period after the expiry of such period; it may not be allowed to carry forward such loss for more than five income tax periods.

• Previous tax holiday letter
• External Auditor Report
• Investment Permit
• Business license
• Commercial Registration
• VAT certificate
• Valid Auditor license and Competence Certificate
• Evidence for the Loss from the Ministry of Revenue

VIP support service is a specialized and high-level facilitation service provided by the Ethiopian Investment Commission to selected investors, or high priority investment projects. The purpose is to offer dedicated assistance for supporting flagship projects that have significant economic impact.

Requirement

• Company profile
• Passport and visa

Requirement 

• Company Profile (Business License and Memorandum of Association of an existing company) or Bank Statement
• Valid Passport

   Requirement

• Valid Passport 
• Visa
• Justification for extension

 Requirement

• Valid Passport 
• Visa
• Company Profile (License and Memorandum of Association of Existing Company) or Bank Statement

An application for minutes of shareholders meeting to be notarized as per the relevant law in Ethiopia.

Requirement

• Valid Passport of shareholders (if represented valid passport/ID of representative with their power of attorney document)
•  Attach draft minutes

A foreign investor seeking to buy an existing enterprise or share must submit an online application to the Commission.

Requirement

• Clearance letter from Ministry of Revenue
• As appropriate, clearance letter from Ministry of Trade and Regional Integration
• Authenticated Sales Agreement (Sole business form)
• In case a share buyer is a company the following documents should also be attached:-  

              1. Notarized legal certificate of incorporation; 

             2. Notarized minutes of the resolution passed by an authorized organ of the parent company authorizing to invest in Ethiopia;                        

             3. Notarized document of its memorandum and articles of associations or similar documents of the parent company and                         

             4.  Notarized Power of attorney of the agent.

An investment permit shall be renewed annually until the investor commences marketing his products or services. There shall be no need for renewal of investment permit after issuance of business license. An application for renewal of new or expansion of investment permit shall be submitted within one month after the end of a period of one year for which the permit was valid.

Requirement

Project implementation report with supporting documents

• land acquisition process, 
• civil works construction, 
• machinery procurement, machinery erecting/installation and preparation for production/ services or
•  any other evidence

An amendment of an investment permit involves the formal process of modifying or changing the terms and information contained in an existing investment permit issued to an investor. This process is typically required when there are changes in key aspects of the investment project like change in company name or legal status, capital, business activity or sector, project location or address, or change in shareholders or ownership structure or any other amendments.

Requirement

• Valid investment permit
• Supporting documents or evidence (capital, general manager, address change or any other amendments/
• Minutes (for One Member PLC/PLC/SC business form) 

An expansion investment is a permit to be issued to an existing investor who seeks to increase the capacity either in volume or in kind of their already operational investment project. This permit allows the investor to legally undertake activities related to expanding their current business operations as per the Investment Law.

Requirement

• Valid Business License
• Project Feasibility Study
• Evidence of additional capital investment for expansion
• External audit report

Cancellation of an investment permit

Requirement

• Minute of shareholders agreement (for PLC or SC)
• The original investment permit.
• Clearance from Customs Commission and Ministry of Revenues 

 A work permit is an official authorization granted by Ethiopian Investment Commission that allows an expatriate to legally work in Ethiopia for specified period and position. In the context of investment projects, it enables foreign investors or companies to employ skilled expatriates when local expertise is not readily available.

Requirement

• Authenticated Educational qualification and work experience documents
• Employment contract between the expat and the enterprise
• Local employee’s replacement plan (training locals to eventually takeover from the expat)
• As appropriate, valid work visa (WV), or business visa (BV), and valid passport.
• Minutes (if it is CEO, General Manager or Deputy General Manager)
• Proof of evidence for local employees like payroll, pension and tax payment receipt 
• If the expat employee engages in health, education or similar sectors, certificate of competence approved by the relevant government office and support letter.

Work permit renewal purpose for expatriate is to allow continuity in key technical roles that are still needed for the investment project. It is the subject of performance evaluations, adherence to local employee’s replacement plans, and ongoing need for the expatriate’s expertise.

Requirement

• Valid passport
• Valid residence permit
• An employment contract concluded between the employee and employer
• Progress report for the replacement of the expatriate by Ethiopian professional
• A complete annual performance report providing information on the condition of transfer of knowledge to Ethiopian replacements.

Amendment of Work permit is to allow to modify specific details in an already issued work permit for an expatriate employee. This is necessary when there are changes in key information or conditions under which the expatriate was originally employed. 

Requirement

•  Original work permit
• Supporting documents
• Justification for amendments

Requirement

• The damaged work permit,
• For the lost work permit evidence from police

Requirement

• Clearance letter from the employer
• Originalwork permit
• Final report on the expatriate’s performance and knowledge transfer, if applicable.

Requirement

• Memorandum of association and any amendments/minutes indicating that the applicant as shareholder and owners
• Valid passport, Investment visa

It is a strategic partnership between a domestic and foreign company that does not involve ownership sharing or capital investment, but focuses on enhancing 100% export capacity through technical, managerial or market access support.

Requirement

•  Collaboration agreement between the domestic investor and a foreign enterprise registered with the notary public
• Valid business license or investment permit of the domestic investor;
• Valid business license or certificate of commercial registration of the foreign enterprise.

It is the process by which an investor transfers ownership and associated rights of an ongoing (but not yet operational) investment project to another party fully. This is to enable new investors to take over and complete implementation, ensuring the project continues without unnecessary delays or loss of resources.

      Requirement

•  Valid investment permit
•  Sale agreement registered with the public notary
• Clearance letter from the Ministry of Revenue 
•  Where land was received for the project, a document showing that the land is transferred to the buyer
• Minutes of the shareholder (PLC/Share Company) 

It is the continuous monitoring and support services conducted by the Ethiopian Investment Commission (EIC) to ensure the investment projects implementation according to their approved plans, and legal obligations. For projects in implementation phase, the investor should submit to EIC quarterly project status report.