Are you planning a foreign agribusiness investment undertaking in Ethiopia by a private limited company PLC and one that you desire to incorporate in that country? In fact, private limited company is one of the two possible legal business structures in Ethiopia to establish a company that will make the investment with the other one being share company or SC in short. Take note that procedures to establish a new local venture slightly differ from one form of business to another.
If you still desire to operate private limited company, follow the step-by-step guides outlined in this article to start one. One way to know what private limited company is can be examining what makes it its different from share company.
Notice the key points and differences between the two from the outlines in the below table. May be transferred among shareholders as provided in the Memorandum of Association, but they can be traded with third parties only after seeking the approval of shareholders owning at least three quarter of the capital. Be aware that in Ethiopia proposal of an investment project and approval of same by the Investment Commission is an integral part of the company incorporation process.
If the proposal proposed investment project is not approved, the company that would make the investment will not be registered. You need to have sufficient information about the investment requirements, incentives and any other matters you need to know before starting the investment process. Collect the information you need from the Information and investment Promotion Directorate of EIC or other reliable resources online or in person if you can.
Examine the following work flow chart to visualize the process to obtain investment permit certificate which is issued by the Ethiopian Investment Commission. However, you should take notice that this chart depicts the general requirements and procedures. The steps vary slightly depending on the business form under which investors plan to operate their business: Therefore, you need to focus on the next steps that apply specifically for private limited company.
After you have filled in the form, submit the draft memorandum and article of association to Licensing and Registration Department of EIC. After you have submitted the draft memorandum and article of association EIC will check whether the name you gave to your future company is unique in the database of the Ministry of Trade.
Upon completion of the checkup, collect letter of clearance of company name from Licensing and Registration Department of EIC. The memorandum and article of association should be edited and authenticated in Licensing and Registration Department of EIC. EIC will review your application and if it is found acceptable, you will be given a letter to the National Bank of Ethiopia where you are required to deposit the capital requirement for a foreign investor.
Therefore you should follow up the application process, get the review result and comments and then receive the letter. Open account the National Bank of Ethiopia. You should provide the bank with the letter written for it by EIC. Finally you should have the investment permit certificate and principal registration certificate issued by EIC. Sector Latest Join. Last updated March 06, Know what business organization counts as private limited company in Ethiopia One way to know what private limited company is can be examining what makes it its different from share company.
Are freely transferable and the public may be invited to subscribe. One-fourth of the capital raised by subscription shall be deposited at the bank. Understand the investment requirements and procedures in Ethiopia Be aware that in Ethiopia proposal of an investment project and approval of same by the Investment Commission is an integral part of the company incorporation process.
Decide whether you seek prior consultations You need to have sufficient information about the investment requirements, incentives and any other matters you need to know before starting the investment process.
Visualize the investment permit application process flow Examine the following work flow chart to visualize the process to obtain investment permit certificate which is issued by the Ethiopian Investment Commission.
Collect application form and memorandum and articles of association Collect these documents from the Information Desk of EIC. Submit draft memorandum and article of association After you have filled in the form, submit the draft memorandum and article of association to Licensing and Registration Department of EIC.
Have letter of clearance of company name After you have submitted the draft memorandum and article of association EIC will check whether the name you gave to your future company is unique in the database of the Ministry of Trade. Edit and authenticate memorandum and articles of association The memorandum and article of association should be edited and authenticated in Licensing and Registration Department of EIC. Collect a letter to National Bank of Ethiopia EIC will review your application and if it is found acceptable, you will be given a letter to the National Bank of Ethiopia where you are required to deposit the capital requirement for a foreign investor.
Open bank account Open account the National Bank of Ethiopia. Collect investment permit certificate and principal registration Finally you should have the investment permit certificate and principal registration certificate issued by EIC. Comment now Share.In Ethiopia business companies are formulated according to the commercial code of of Ordinary partnership. A partnership is an ordinary partnership within the meaning of this Title where it does not have characteristics which make it a business organization covered by other Title of the code.
Joint venture. A Joint Venture is an agreement between partners on terms mutually agreed and is subject to the general principles of law relating to partnerships. General partnership. A general partnership consists of partners who are personally, jointly, severally and fully liable as between themselves and to the partnership for the partnership firms undertakings.
Any provision to the contrary in the partnership agreement shall be of no effect with regard to third parties. Where the partnership is a commercial partnership, each partner shall have the status of a trader.
A limited partnership comprises two types of partners: general partners in full liable personally, jointly and severally and limited partners who are only liable to the extent of their contribution.What is a private limited company?
A share company is a company whose capital is fixed in advance and divided into share and whose liabilities are met only by the assets of the company. The members shall be liable only to the extent of their share holding.
Private limited company. A private limited company is a company whose members are liable only to the extent of their contributions. A private limited company shall not have less than two or more than fifty members and is always commercial in form. The capital of a private limited liability company shall not be less than 15, Ethiopia birr. You must be logged in to post a comment.
January 23, The partnership shall have a firm name. Limited Partnership; A limited partnership comprises two types of partners: general partners in full liable personally, jointly and severally and limited partners who are only liable to the extent of their contribution. The company shall not issue transferable securities in any form.
Definition and Characteristics of Private Limited Company
Leave a Reply Cancel reply You must be logged in to post a comment.Ethiopia is a country located in the Horn of Africa. This list includes notable companies with primary headquarters located in the country. The industry and sector follow the Industry Classification Benchmark taxonomy. Organizations which have ceased operations are included and noted as defunct.
Anbessa City Bus Service Enterprise. Awash International Bank. Commercial Bank of Ethiopia. Cooperative Bank of Oromia. Ethiopia Commodity Exchange. Brewery, now part of Heineken International Netherlands. Marathon Motors Engineering. National Bank of Ethiopia. Central bank. Oromia International Bank. Selam Bus Line Share Company. Sky Bus Transport System. By topic Constitutional Military.
Outline Index Category.New with big Ideas to provide you the best rough Gemstones from Ethiopia you name it we'll provide you the best. Electronic instruments that used for TV networks such as Taps, spliiters, Amplifiers, Headhend unit, Coaxial cables RG-,RGFemale and male connectors, Terminators, adjusters, wall out lets, 42" panasonic plasma spare Need full line of raw materials Grade A and Grade B needed for manufacturing baby diapers and female sanitary napkins.
Dear Sir,oour company won pcs of standard flags for different reginal state in Ethiopia and We are searching for manufacturer of flag in india please contact us ASAp. Dawit Boka. Our company Haset wholesales business plc, which has been a leader in the field of wholesaling different agricultural and manufactured food industries Ethiopia.
We have products available are pure organic nature. Our are:- Soy bean, Our company is mainly engaged in exporting organic foods from Ethiopia to various overseas and also give professional business advise for foreign investors partners, inform hot act as an intermediary between buyers sellers. NES International General Commission Agent is established with a vision of being leading commission agent in the world market.
The company has identified the gap in marketing sourcing industrial inputs country. So our organization mainly engaged We are one of the most known Humera type sesame and Wollega exporters in country. Mesfin industrial Engineering is a metal manufacturing company which engadged transportation manufacturing different types of trailers and truck mounted bodiesenergy sector penstockssteel structure PEB towers etc Labora is a major importer,exporter and commision agents of Medical equipment ,medical supplies,and diagnostics in Afria based Ethiopia.
Laboa imports quality medical products from known manufacturers. Labora distrbuts acts as Please, include the detailed technical Our Company is one of the leading company in export sector. We export agricultural products and live Camels. These infrastructures carry Reinforcement bar manufacturer in Ethiopia with a installed capacity of 75, tons per anum from scrap metal. Our Company Getahun Kider Enterprise p. Gem Ethiopia specialize in an ample variety of rough gemstones and have over 15 years experience providing quality uncut with exceptional customer service.
We are one the most trusted biggest gemstone dealers East Africa. We are based Addis Ababa Ethiopia. In addition to this we will engage on another products. We are in road construction industry hence we need construction equipment, vehicles, steel, cement RCC pipes etc.Private Limited Company is a business entity in which is privately held for small businesses.
The liability of the members of a Private Limited Company is limited to the amount of shares respectively held by them. Shares of Private Limited Company cannot be traded in public. All the aspects of Private Limited Company is discussed in the article. Members — To start a company, a minimum number of 2 members are required and a maximum number of members as per the provisions of the Companies Act, Limited Liability — The liability of each member or shareholders is limited.
It means that if a company faces loss under any circumstances then its shareholders are liable to sell their own assets for payment.
The personal, individual assets of the shareholders are not at risk. Perpetual succession — The company keeps on existing in the eyes of law even in the case of death, insolvency, the bankruptcy of any of its members.
This leads to perpetual succession of the company. The life of the company keeps on existing forever. A number of directors — When it comes to directors a private company needs to have only two directors.
With the existence of 2 directors, a private company can come into operations. Paid up capital — It must have a minimum paid-up capital of Rs 1 lakh or such higher amount which may be prescribed from time to time.
Prospectus — Prospectus is a detailed statement of the company affairs which is issued by a company for its public. In case of private limited company shares can be allotted to the public without receiving the minimum subscription.
Name — It is mandatory for all the private companies to use the word private limited after its name. Directors- A minimum number of two directors is required for registering the private limited company. Each of the directors should have DIN i. Name- It is one of the major components for a private limited company. The name of the company contains three parts i. It is necessary for all private company to use the word private limited company at the end of its company name.
Every company has to send names for approval to the registrar of the company and all the names should be unique and expressive. The name for approval should not resemble with any other companies name. So choosing the right company name is an important component is it will stay with the company throughout its life. Registered office address- While going for the registration of the company, the owner should provide the temporary address of the company until it does not get register.
However when the company has been registered then its permanent address of its registered office should be suited with the registrar of the company. The Registered office of the company is where companies main affairs are been conducted and where all the documents are placed.
All documents are submitted electronically and for that, every company must obtain a digital signature certificate which is used to verify the authenticity of the documents.
A digital signature is obtained by all the directors which are marked on all the documents by every director. Professional certification- In a company there are many professionals which have required for many purposes. For incorporating a private limited company certification by these professionals are necessary. Ownership- In a public company, regulation and ownership of shares can be sold to the public on an open market.
On the other hand, in a private company, shares can be sold or transferred to other people by the choice of the owner. Shares of such company are owned by founders, management or a group of private investors. Shares here are not sold in open market.Private Limited Company is a popular incorporated business form in Ethiopia that can be established by a minimum of 2 and maximum of 50 persons. We focus on Addis Ababa, as the bulk of commercial activity in Ethiopia is done here.
Prepare a memorandum of association and articles of association. This can be done in Amharic or English. One can get samples from the Ministry of Trade and Industry or from the business centres located around the Documents Authentication and Registration Office. Please try to find out where your office will be loacted so that you can include the right address in the documents.
Take the draft copies of the memorandum of association and articles of association to the Ministry of Trade and Industry. They have an office on the ground floor of their building where they can check names. You will submit the draft copies at office no. You can get more information from there too. You will be sent to the appropriate desk and at this desk, the officer will go thorugh your drafts.
The drafts will either be approved or you will be asked to correct them. Finally, if the officer is satisfied with your documents and all the shareholders are present with their ids or passports, you will be asked to sign the paper. Then you will be asked to pay. After payment, you have your PLC! Twenty Seven ETB Of course, you may have to pay some money at the business centers and at the copy shop. That may take anything between Br.
You can mention as many types of business as possible in the documents as your intended areas of business.
You may not immediately get registration and license for these businesses. You can get registration and license for the types of businesses you want to engage immediately provided you have fulfilled the requirements.
For further info on business registration and license regulation and procedures, pls check this page. Regulations Procedures Shipping Info Statistics. Regulations Procedures Incentives Opportunities Options.To browse Academia. Skip to main content. Log In Sign Up. Tibebe Solomon. Background 1 1. Statement of the Problem 5 1. Objectives of the Study 7 1. Significance of the Study 7 1. Scope of the Study 8 1. Methodology 8 1. General Overview on Business Organization 12 2. The Concept of Partnerships 14 2.
Meaning of a Partnership 15 2. Types and Nature of Partnerships 18 2. General Partnership 18 2. Limited Partnership 20 2. Joint Venture 21 2. Ordinary Partnership 22 2.
Formation of Partnerships 23 2. Management of Partnerships 25 2. Rights and Duties of Partners 26 2. Rights of Partners 26 2.