One Member Private Limited CompanyEthiopia
What it takes to form, own and run a private limited company in Ethiopia, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
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a one member private limited company is a business organization incorporated by the unilateral declaration of a single person.
The registry’s and the law’s own pages do not mention it.
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shall not be less than 15,000 (fifteen thousand) Ethiopian
The registry’s and the law’s own pages do not mention it.
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በድርጅት ላይ ተፈፃሚ የሚሆነው የንግድ ሥራ ገቢ የግብር መጣኔ ሰላሳ በመቶ (፴%) ነው፡፡
Form it
Who registers it
- Registry
- Ministry of Trade and Regional Integration (central commercial register; regional trade bureaus and the Ethiopian Investment Commission register and forward to it)
- Formed without visiting
- Not stated
The registry’s and the law’s own pages do not mention it.
- Formed online
- Not in our records
What it takes to form
- A notary
- Required
- A resident director
- Not stated
The registry’s and the law’s own pages do not mention it.
- Paying up the capital
- The unilateral declaration states the capital has been fully paid (art. 536(2)(g)).
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g) the amount of the capital of the company and a
Own it
Who may own and run it
- Directors
- Not stated
The registry’s and the law’s own pages do not mention it.
- Shareholders
- At least 1 · at most 1
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a one member private limited company is a business organization incorporated by the unilateral declaration of a single person.
- Members
- At least 1 · at most 1 · one person may form it alone
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incorporated by the unilateral declaration
- A local company secretary
- Not stated
The registry’s and the law’s own pages do not mention it.
- A local registered agent
- Not stated
The registry’s and the law’s own pages do not mention it.
Each year, at the registry
Not in our records Annual registry fee, Accounts on the public record, Audit for a small company, Audit: none of these is in our records for the One Member Private Limited Company.
Important dates
When each obligation falls due, as the authority states it.
Not in our records No dates for the One Member Private Limited Company are in our records.
What is public
Not in our records What the register shows the public is not in our records for the One Member Private Limited Company.
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Flat · 30%
Business income tax on a body (ድርጅት) is thirty percent (Proclamation 979/2016 art. 19(1)); whether a one member company counts as a body is not stated on the page quoted.
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በድርጅት ላይ ተፈፃሚ የሚሆነው የንግድ ሥራ ገቢ የግብር መጣኔ ሰላሳ በመቶ (፴%) ነው፡፡
Work it out on a profit figure: the company’s tax, the owner’s, and what is left.
- CFC rules in Ethiopia
- Not in our records
Close it
Closing it
The other end, which most guides leave out.
- Route
- Dissolution on the art. 181 grounds; where the company has settled all its debts, all assets pass to the member without liquidation (art. 544(1))
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3/ members agree to dissolve the business organization;
- Statutory fee
- Not in our records
Every business in Ethiopia
VAT
- Standard rate
- 15%
Value Added Tax Proclamation No. 1341/2024 (Federal Negarit Gazette No. 61, 21 August 2024), art. 8(2): 15 percent, with zero percent for zero-rated supplies. Read on the Ministry of Justice's law site (justice.gov.et), which lists the Proclamation as in force.
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b) in any other case 15 percent.
- Other rates
- 0% Zero-rated supplies
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a) for a taxable supply that is a Zero-rated supply, Zero percent, or
- Registration threshold
- ETB 2,000,000
total value of taxable supplies, or such other amount as the Ministry's directive sets (art. 12); 12 calendar months
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The registration threshold is 2,000,000 Birr or such other amount as specified in the Directive to be issued by the Ministry.
- A foreign company
- The same threshold applies
Art. 64 applies the art. 12 liability to register to a person carrying on a taxable activity outside Ethiopia with no fixed place of business there, so the threshold applies. It does not require a VAT representative as a rule: the Tax Authority may require security, and may require a VAT representative if the person then fails to comply, so representative_required and registers_from_first_supply stay open.
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the Tax Authority may require a person carrying on a taxable activity outside Ethiopia who is liable to be registered under Article 12 of this Proclamation but who does not have a fixed place of business in Ethiopia to lodge security
- Returns filed
- Monthly
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“Accounting Period” means each calendar month.
- Tax authority
- Ministry of Revenues, Federal Democratic Republic of Ethiopia
Payment and banking services
None of the services whose lists we hold names Ethiopia. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- Private limited companyDerived our grouping, the same words in every country
- Name in law
- One Member Private Limited Company
- Identifier
- ET-ONE-PERSON-PLCA form ISO 20275 does not list.