How to Start a Private Limited Company (PLC) in Ethiopia
1. Prepare Memorandum of Association and Articles of Association
A sample document can be obtained from the Ministry of Trade (Located infront of Dembel City Center, Bole Road) or from internet centers around Document Authentication and Registration offices (DARO). The document can be prepared in Amharic and English but you might be asked to provide the Amharic version on subcity level. Take a closer look at the decision making part, specifically how much percentage is considered to be majority because when you change your address, increase your capital or any other major company decision, you will need to prepare a minutes that will be authenticated by DARO. And unless the majority of the shareholders agree and present themselves in person at DARO, your minutes will not be authenticated.
2. Check the company name
You will take the draft Memorandum of Association and Article of Association to Ministry of Trade located next to Development bank of Ethiopia. There, they will check if there is any other company which resembles your company’s name and they will either tell you to change your company’s name or it will be accepted. If it’s accepted, they will give you permission to take memorandum of association and article of association to ministry of DARO.
3. Authenticate your documents at DARO
Though there are many DARO office scattered around Addis Ababa, the only branch that deals with forming a company is the one located at Chelelek ALSAM Tower, around Ethiopian Commodity Exchange (ECX), located on the way from Mexico Square to Lideta / Tor Hayloch.
After that, your documents will either be accepted and you and the share holders will be asked to present themselves in person or their legal representatives with a renewed ID Card or Passport. Now you have your PLC and you can now start the process to get a license.
Tags: Tor Hailoch,, Private Limited Company (PLC),, Dembel City Center,, Document Authentication and Registration offices (DARO),, Memorandum of Association,, Article of Association,, Ethiopian Commodity Exchange (ECX),, Lideta, , Mexico Square,