Starting a business in Ethiopia

Legal Forms of Companies

Share companies

Number of partners: at least 5
Capital (max/min): ETB 50,000
Full subscription of capital, in addition to at least 25% of the capital paid up capital, is required
For wholly foreign-owned companies, the minimum capital is USD 200,000
Shareholders and liability: limited to the assets of the company

Limited liability company

Number of partners: at least 1 director and 2 shareholders
Capital (max/min): ETB 15,000
Shareholders and liability: limited to the assets of the company

Joint venture

Number of partners: at least 1 local and 1 foreigner
Capital (max/min): USD 150,000
Shareholders and liability: limited to the company’s assets

Sole Proprietorship

Number of partners: 1
Capital (max/min): For wholly foreign-owned companies, the minimum capital is USD 200,000
Shareholders and liability: the sole proprietor is liable personally for all debts of the business operation

Partnership

Number of partners: minimum 2
Capital (max/min): contributions shall be equal and of the nature and extent required for carrying out the purposes of the partnership
Shareholders and liability: the liability of members of partnership is unlimited (in the case of limited partnership, limited partners who do not participate in management have limited liability). However, the liability of the general partners or managing partners remains unlimited)

Business Setup Procedures

Source: Doing Business - Latest available data.