I APPLICATION FOR INVESTMENT PERMIT BY A FOREIGN INVESTOR

Application for Investment permit by a foreign investor shall be made in a form designed for such purpose and submitted to the commission together with the following documents in two copies:

(a) where the application is signed by an agent, a photocopy of his power of attorney;

(b) where the investment is to be made by an individual person, photocopy of the pages of a valid passport showing his identity and his recent two passport size photographs;

(c) where the investment is to be made by a business organization incorporated in Ethiopia, photocopies of its memorandum of association and Articles of association; or where it is to be newly established, in addition, it shall submit photocopies of the pages of a valid passport of each shareholder showing his identity;

(d) where the investment is to be made by a branch of a foreign business organization in Ethiopia, photocopies of its memorandum of association and Articles of association or a similar document of the parent company;

(e) where it is a joint investment by domestic and foreign investors, in addition to the documents provided under (c) above, photocopies of identity cards or photocopies of certificates evidencing the domestic investor status of the domestic investors, as the case may be."

II INVESTMENT PERMIT

Requirement of permit

1) The following investors shall be required to obtain investment permits:

• Foreign investors;
• Foreign nationals, excluding Ethiopians by birth, taken for domestic investors pursuant to Article 2(5)of this proclamation;
• Domestic investors investing in areas eligible for incentives;
• Domestic and foreign investors making investments in partnerships.

2) Notwithstanding Article 2(1) of this proclamation. a foreign investor intending to buy an existing enterprise in order to operate it as it stands or to buy shares in an existing enterprise shall have to obtain prior approval form the Authority. A request for such approval shall be decided upon within 10 days of receipt of an application accompanied by complete information.

3) The provisions of this Article shall not affect the right of an investor of Ethiopian national or foreign national, an Ethiopian by birth taken for domestic investor, intending to invest, in conformity with the relevant laws of the country, in areas not eligible for incentives or, waiving his right of entitlement in those areas eligible for incentives.

III APPLICATION FOR INVESTMENT PERMIT

An application for investment permit shall be made in a form designed for such purpose and submitted to the appropriate investment organ together with the following information:

1. the project profile;
2. a list of the type and quantity of machinery and equipment intended to be exempted form import duties and taxes;
3. in case of a business organization, the memorandum and articles of association;
4. in the case to expansion or upgrading, a brief description of same and the implementation program;
5. in the case of planned employment of expatriate staff, with the exception of top management positions, a statement on the time schedule for their replacement by Ethiopians and the training program designed for such replacement;
6. power of attorney in the case of an application made through an agent; and
7. other relevant information relating to the particulars of the project.

For further information, check http://www.ethioinvest.org