A foreign investor can engage in any sector listed under the Investment Proclamation No. 769/2012 and Regulation No. 270/2012 (both as amended), except the few sectors reserved for domestic investors, Ethiopian nationals or the government in the same laws.
Citizenship in Ethiopia
Acquisition by Law
– Any foreigner may acquire Ethiopian nationality by law in accordance with the provisions of articles 5-12 of this proclamation. However, there are conditions to be fulfilled by a foreigner who applies to acquire Ethiopian national law.
Capital requirement The Investment Proclamation sets a minimum capital requirement on foreign investors as below:
• USD 200,000 for a single investment project by a foreign investor
• USD 150,000 if joint investment with a domestic investor
• USD 100,000 if the investment is on architectural or engineering works or related technical consultancy services, technical testing and analysis or in publishing work, and is solely owned by a foreign investor, and USD 50,000 if joint investment with a domestic investor in the specific sectors
• No capital requirement for reinvestment of profit or dividend
For the first visit to Ethiopia, a business visa can be obtained from an overseas diplomatic mission. Once an investment permit is obtained, the Department for Immigration and Nationality Affairs issue a residence permit. Foreign investors who are shareholders are then entitled to get a residence permit. For investors in industrial parks, multiple entry five-year visas are provided.
• Business or investment visa is required for all foreign visitors to Ethiopia, except for nationals of Kenya.
• Visa applications can be obtained at Ethiopia’s diplomatic missions overseas
• The Main Department for Immigration and Nationality Affairs issue a residence permit to a foreign investor on submission of an investment permit issued in his/ her name.
• A foreign investor who is a shareholder of a company or branch company as well as expatriate personnel who have a work permit is entitled to get a residence permit.
• Favorable visa terms for investors in industrial parks:
Multiple entry visa valid for up to five years is given for foreign investors; up to three years long visa for industrial park service providers, managers, board members and senior experts employed by foreign investors.
Other requirements for an investment visa:
Additionally, if the traveler is coming to invest or see investment opportunities in Ethiopia for the first time, the requirement is:
If the traveler is invited by a company that has been involved in investment activities in Ethiopia, the requirements are:
Structures of Investment Companies:
a. Wholly owned investment – effective with full ownership of an investment by an individual.
b. Joint venture – in partnership with local individuals or companies. Joint ventures could also be forged with Public enterprises that are out for privatization as well as with the Government in the manufacture of weapons, ammunition and telecommunication services.
c. Business organization – Private Limited Company, Share company established in Ethiopia or branch of a foreign company.
1. Legal certificate of incorporation in the country of origin;
2. Notarised document of the memorandum and article of association;
3. A decision stating the organization’s intent to invest in Ethiopia, together with the amount of capital allocated for the purpose
4. Power of attorney to the appointed agent in Ethiopia.
The requirements and qualifications required to obtain Ethiopia residency or citizenship are listed above in the “About Ethiopia Citizenship and Residency” section.
Step 1: Fill in the online e-Visa application. Ensure all provided are correct. Upload Documents.
Step 2: Review your application carefully. Choose the payment option to make pay the fee.
Step 3: Receive your e-Visa through email in pdf format. Download & print your visa letter.
Licensing and Registration Process in Ethiopia
Ethiopia’s new Investment Permit Application process is simple and requires only a few steps and, those steps vary slightly depending on the business form under which investors plan to operate their business:
A. Sole Proprietorship
B. Private Limited Company
In case a Company is a shareholder, the following additional documents shall be submitted:
In the case of a foreign company:
In the case of the local company:
Share company or Joint venture
C. Branch /Multinational Company
All documents whose sources are outside of Ethiopia shall be:
Documents to be Notarized and Authenticated
Upon the submission of an investment permit, the Main Department for Immigration and Nationality Affairs issue a residence permit to a foreign investor. A foreign investor, who is a shareholder of a company or a branch company and an expatriate staff who has a work permit, are also entitled to a residence permit.
Privacy World offers its services to anyone, not only looking to obtain residency and/or citizenship processes but our experts figure out legal ways to:
Privacy World can also help you with incorporating your company in Ethiopia, assisting in getting you settled in the country, and coordinating with you so that this experience will be less of a hassle.
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No. The Ethiopian legal system strictly prohibits dual citizenship. You are required to renounce your previous nationality to become a citizen of Ethiopia.
Yes. Family: Spouse, Children, Unmarried sons, Daughters under 21 and unmarried, Brothers and Sisters can also include in the application.
Under normal circumstances, the e-Visa processing time is up to 3 days though it can be earlier. So, it is advisable to apply at least 3 days before your departure.
The validity of the Ethiopian e-Visa starts from the date of entry to Ethiopia you selected while applying your application, not from the date of issue.
You must live in Ethiopia for a total of at least 4 years preceding the submission of your application.
The residence permit is valid for 1 year.
An individual is considered to be resident in Ethiopia if any of the following circumstances exist: — He or she has a domicile in Ethiopia and a habitual abode in Ethiopia. — He or she is a citizen of Ethiopia who serves abroad as a consular, diplomatic or similar official of Ethiopia. — He or she is physically present in Ethiopia for more than 183 days in 12 calendar months, either continuously or intermittently.
If the person was present for 183 days in Ethiopia within 12 months permanently or another way, the law regards him as an Ethiopian resident and imposes an obligation of paying tax from any income he gets.
Non-residents are subject to tax on their Ethiopian-source income only.