Starting a Private Limited Company (PLC) in Ethiopia is a structured process, and with the assistance of Target Business Consultants, you can streamline each step and digitalize your company. Here’s a comprehensive guide:
STEP 1: Preparing Memorandum of Association and Articles of Association
Prepare your Memorandum of Association (MOA) and Articles of Association (AOA) in Amharic or English. You can find sample documents from the Ministry of Trade and Industry, Ethiopian Investment Commission, or local business centers. If you haven’t leased an office yet, state that the head office will be located in Addis Ababa in the documents. Target Business Consultants will assist you in preparing these documents accurately and ensuring all details are correct.
STEP 2: Checking the Proposed Name of the PLC
Submit your draft MOA and AOA to the Ministry of Trade and Regional Integration or Ethiopian Investment Commission for name verification. If the proposed name is available, you will receive a letter for the Documents Authentication and Registration Office and the Ministry of Revenues. If the name is taken, you will be advised to select a new one. Target Business Consultants will guide you through this process to ensure the name approval is handled smoothly.
STEP 3: Document Authentication and Registration
Take your approved drafts to the Documents Authentication and Registration Office at the Ministry of Trade and Regional Integration or Ethiopian Investment Commission. After submission, the documents will be reviewed, and if approved, you will be asked to sign and make the necessary payment. Target Business Consultants will assist in navigating this step and ensure all paperwork is completed accurately. The cost includes ETB 27 for name checking and ETB 552 for registration.
STEP 4: Application for a Tax Identification Number (TIN)
Once your MOA and AOA are authenticated, apply for a TIN. This can be done at the tax authority office within the Ministry of Trade and Industry or Ethiopian Investment Commission or at a local branch. Target Business Consultants will help you with the TIN application and ensure all necessary documentation is provided.
STEP 5: Application for Commercial Registration
With your TIN, file an application for commercial registration with the Ministry of Trade and Industry or Ethiopian Investment Commission. You will need the following documents:
- Two photographs of the general manager
- Authenticated MOA and AOA
- Tax Identification Number
- Minutes of the shareholder’s meeting (indicating agreement to form the PLC)
- Lease contract or title deed of the business office
- Authenticated power of attorney if an agent is filing the application
Target Business Consultants will assist you in completing this application and ensure that all documents are in order.
Additional Points:
You can list multiple business activities in your documents, though registration and licensing for all may not be immediate. Target Business Consultants will help you understand the requirements and facilitate the registration and licensing for your desired business activities.