Investment and Corporate Law
Investment Law
Investment law governs both domestic and foreign investments in Ethiopia. The Ethiopian Investment Proclamation No. 1180/2020 outlines regulations for investors.
Major areas include:
Foreign Investment Guidelines: Ethiopia provides incentives for foreign investors in priority sectors like manufacturing and agriculture.
Investment Protections: Investors are protected from expropriation and unfair treatment.
Tax & Incentives: Businesses may receive tax holidays, duty-free import privileges, and other benefits.
Corporate Law
Corporate law governs the formation, management, and dissolution of companies. The Commercial Code of Ethiopia (2021) provides the legal framework for corporate governance.
Key components include:
Company Formation & Registration: Companies must be registered with the Ethiopian Ministry of Trade and Industry.
Shareholder Rights & Duties: Corporate law ensures shareholder protections and fiduciary duties of executives.
Corporate Governance: Companies must adhere to ethical business practices and transparency in financial reporting.