Legal update

Limits on Birr and Foreign Currency Holding in the Territory of Ethiopia (Directive No. FXD/81/2022)

Introduction A new directive has been issued by the National Bank of Ethiopia which establishes the conditions, limitations, and circumstances under which an Ethiopian, a resident of Ethiopia, a non-resident of Ethiopia, or any other person may possess and use foreign currency. Following the publication of this new directive, the Limits on Birr and Foreign...
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Legal Update on Directive No. 914/2022:  A Directive on Exporting Sample Products for the Manufacturing Industry Sector No. 914/2014

General Overview The Directive is issued by the Ministry of Finance of the Federal Democratic Republic of Ethiopia with the purpose of entitling exporters to export samples without paying tariffs and duties and without obtaining export permission from a bank. The Directive defines “Product Samples” as exact products or a representation of the product sent...
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Legal Update on the New Investment Incentive Regulation 517/2022

Following the passage of the Investment Proclamation and Regulation of 2020, the Council of Ministers of the Federal Democratic Republic of Ethiopia issued Investment Incentive Regulation No 517/2022 (hereafter the “Regulation”) on 12th July 2022.
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Note on Administrative Contract and Arbitration

Part One Arbitrability of Administrative Contracts When it comes to arbitrability, there is no uniform application throughout the world; what is arbitrable in one jurisdiction may be non-arbitrable in another jurisdiction. In the United States of America, for instance, administrative contracts are arbitrable but not in many countries including Ethiopia. In principle, administrative contracts are...
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Tax Clearance Certification: Directive No. 147/2011

This directive amends the previous directive 139/2010. It defines a tax clearance certificate as a written document that verifies a taxpayer has paid or is paying his tax. This certificate is given by the tax authority upon application of the taxpayer. Conditions for application There are four conditions for the application for tax clearance certification....
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One-person Company Under the New Commercial Code

The newly passed commercial code has introduced a one-person company. This new introduction increased the number of forms of business organizations from six in the old commercial code to seven; four partnerships, a private limited company, a share company, and the one-person company. But, in addition to these seven forms of business organizations, sole-proprietorship is...
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