Professional Documents
Culture Documents
Formation of Business Organization
Formation of Business Organization
Publicity
Art.219 (1) “any business organizationother than a joint venture shall be
made known to third parties.”
Publicity consisted in cumulative fulfillment of the requirements relating to publication
Art.220 publication of notes “shall be published in a newspaper empowered to publish
legal notice circulating at the place where the hade office is situate.
Art.221 Deposit of documents
A deposit under Art.219 (2) shall be made with the official in charge of the commercial
register at the place where the head office is situated .
(2) Two copies of the memorandum and all complementary documents,if any, shall be
deposited.
(3) The official shall keep one copy of the documents deposited and shallsend the second
copy to the department of thecentralcommercial register provided in Art. 90 of this
Code.
(4) Any person may, on payment of the prescribed fee, require the officialin charge of a
local or of the central commercial register to deliver to him a copy of all entries relating
to a business organization.
Art. 222. - Registration.
(1) The application for registration in the commercial register shall bedeposited with the
documents specified in Art. 221-
(2) The provisions of Art. 95-99 of this Code shall apply. The official incharge of the
register shall examine whether the legal conditions relating to the formation of the
business organization have been fulfilled.
Art. 223. – Effectpublicity.
A business organization shall have no legal existence nor personality until all the
provisions of this Code relating to publicity have been complied with and registration is
published in accordance with Art. 87 of this Code.
Art. 224. - Modifications.
(1) Any modification in the memorandum of association shall be deposited.
(2) Any modification of a fact published and registered, shall be published and the entry
shall be corrected in accordance with Art. 108 of this Code.
Article 1
Establishment
Members, whose signatures are found at the end of this document, have
Agreed to establish a Private Limited Company governed by the
Commercial Code of Ethiopia, this Memorandum of Association and Articles
Of Association attached herewith.
Article 2
Name, Nationality and Address of Member
No Name Nationality Phone no Address
1 Riyad Amir Ethiopian 0923345465 Addis Ababa
2 Eyerusalem Deribe Ethiopian 0920120394 Addis Ababa
3 Hikma Herat Ethiopian 0922987598 Addis Ababa
4 Bezawit Beshah Ethiopian 0921876364 Addis Ababa
5 Tsedeniya Sisay Ethiopian 0911758493 Addis Ababa
6 Hayelom Tesfaye Ethiopian 0912282744 Addis Ababa
Article 3
Name and Head Office of the Company
1. The name of the Company shall be RH-BETA FOOD AND AGRICULTURE
Private Limited Company.
2. Without prejudice to the rights of Members to open branch offices within or
outside Ethiopia, the Company's head offices shall be in Addis Ababa, Ethiopia,
Nifas Silk Lafto Sub- city, kebele 06 House no. 755
Article 4
Article 5
Capital
The capital of the Company is Birr 2,000,000 (two million)
And it has been fully paid in 1000(one thousand). The whole
Paid in 1000(cash and/or in-kind). The numbers of shares owned by
The members are as follows:
Article 6
Distribution of Profits and Losses
Unless members agree otherwise, the annual profit of the company shall be
Distributed among members proportional to the number of their shares.
Accordingly, if there is a loss, it shall be distributed among themselves. In
Any case the members could not be made liable beyond the value of shares
They own in the Company.
Article 7
Management of the Company
The Company shall be managed by a general manager appointed fromthe members or non-
members for 2012.E.C years, whose responsibilities and duties are listed in the Articles of
Association of the Company.
Therefore, Mr. Riyad Amir is appointed to be the first GeneralManager of the Company.
The General Manager may be reappointed for another term. TheCompany may also have
departmental managers as required.
The powers and duties of the General Manager shall include the
Following
ü Appoint, control and dismiss departmental managers,
Determine and notify their job descriptions;
ü . Represent the Company to sign its affairs
ü Be the chief executive of the technical and administrative
Affairs of the Company;
ü Implement the decisions of the general meeting of the
Company, if any;
ü Receive money payable to the Company, pay debts of the
Company, prepare, sign at the back, renew and effect payment
Of promissory notes and bank documents as well as approve
And sign at the back of shipment receipts, bond certificates or
Any other documents of the Company;
ü Employ and dismiss workers and agents of the Company,
Determine their salaries, bonus and other conditions attached
To employment and termination;
ü Open bank accounts in the name of the Company and credit its
Payments as well as sign its financial statements;
ü Determine purchase and sales and approve their orders, which
Are necessary for the running of the Company;
ü Conclude any contracts of business transactions of the
Company with third parties;
ü Take necessary actions on behalf of the Company regarding
Suits in which the Company is a plaintiff, a defendant or an
Intervening third party in any court of law;
ü Take or cause to be taken appropriate measures for the
Efficient keeping of out flow and in flow of accounts of the
Company to be submitted and approved by its members;
ü May delegate, the duties assigned to him herein above any other person in the name
of the company
Article 8
Auditors
The Company shall have auditor/auditors appointed by the members the auditor is
Hayelom Tesfaye.
Article 9
The association financial statement
Law using financial statement is report time is Aug. down to July
Article 10
Abrogation
Dogma No 217.218.511.542 and 543 defaulter decision
Article 11
Update
Dogma no 536 base by members the reason defaulter decision
Article 12
Duration of the Company
Without prejudice to member's right to decide otherwise, the Company is
Established for unlimited period of time in wines thereof, the members of the Company
have affixed their
Respective signatures hereto on the day of 2012 E.C A/A/K F.D.R.O
ARTICLES OF ASOCIATION
RH BETA FOOD AND AGRICULTURE P.L.C
Article 1
General
These Articles of Association, which forms part of the Memorandum of Association, shall
govern the operations of the Company.
Article 2
Right and Duties of Shareholders
2. Attached to shares follow these shares. Any natural or juridical person may own shares
and exercise his rights according to this Articles of Association. By the same reasonan
owner of a share is duty bound to be governed by these Articles of Association,
Memorandum of Association and decisions passed by the General Meeting.
Article 3
Share Register
1. The Company shall keep, at its head office, a register of shares which shall show:
2. The General Manager shall be responsible for keeping the share register and for submitting
to the Ministry of Trade and Industry or to the appropriate Regional Bureau the annual list
of the items referred in sub article 1 of this Article.
3. The register of share and records of business shall be open for inspection by shareholders
free of charge.
Article 4
Transfer of Shares
1. Transfer of shares outside the shareholders shall be effected upon the prior agreement of
shareholders representing at least 75% of the capital of the Company.
2. Any transfer of shares stated above shall be made in writing and shall be of no effect
unless it is entered in the registry of shares. Provisions of the Commercial Code of
Ethiopia regarding registration of shares shall be applicable.
Article 5
Heirs
1. Where one of the shareholders of the Company dies, heirs of the deceased shareholder shall
substitute him/her.
2. A shareholder has a right to assign his/her share in the company to an heir he/she wishes.
3. Where the heir/s of the deceased shareholder is/are not interested to continue as a
shareholder in the Company, he/she has the right to sell the shares.
Article 6
Administration of the Company
Article 7
Power of the General Meeting
a. Deliberate on the report of the General Manager and approve the same when it is
found acceptable;
b. Hear and examine the Company's auditor annual report and take appropriate
measure;
c. Appoint or remove the General Manager of the Company;
d. Re-elect and dismiss Auditor/s of the Company;
e. Decide the remuneration payable to the General Manager;
f. Give directive to the General Manager on the work performances of the Company;
g. Pass decision on the expansion or dissolution of the Company when it finds it
necessary; and
h. Decide on the allocation of annual profits.
Article 8
Meetings
1. General Meeting of the Company shall be called within two months’ time after the end of
each financial year.
2. The General Manager shall call the shareholders for the yearly General Meetings by
registered letter stating the time, place and agenda of the meeting at least seven days before
the date of the meeting.
Article 9
Quorum of a Meeting
1. A meeting of the Company can be conducted when members representing more than 50%
percent of the capital are present.
2. In such meetings the decisions are passed by a majority vote of members representing more
than half of the capital.
Article 10
Decisions passed without a Meeting
1. Where convening of a meeting is not required by law or by these Articles of Association, the
General Manager shall send to each member the text of the draft resolutions to be taken and
such other supporting documents by requesting shareholders to send their written votes
thereon.
2. Such written vote shall be delivered within one month from the date of receipt by the
shareholders of the draft resolution.
Article 11
Proxy
4. In the absence of contrary stipulation, the representative shall exercise the rights and duties
of the shareholder that he represents.
5. The power of Attorney shall be made in writing, signed before a duly authorized notary
office.
Article 12
Conduct of the Meeting
1. The shareholders shall elect a shareholder to be Chairperson of the meeting at each general
meeting.
2. The General Manager shall appoint a secretary who shall attend all meetings and keep all
the minutes and recordings.
Article 13
Appointment of the General Manager
1. Mr. Riyad Amir is appointed to be the first General Manager of the Company by the
shareholders.
2. The shareholders of the Company may replace the General Manager at any time in
accordance with the relevant laws.
Article 14
Powers of the General Manager
In connection with the business purpose of the Company, the General Manager is
empowered to execute the following duties in accordance with the Memorandum of
Association, these Articles of Association and the decisions of the General Meeting of the
Company:
a. Appoint, control and dismiss departmental managers, determine and notify their job
descriptions;
b. Represent the Company to sign its affairs;
c. Be the chief executive of the technical and administrative affairs of the Company;
d. Implement the decisions of the General Meeting of the Company, if any;
e. Receive money payable to the Company, pay debts of the Company, prepare, sign at
the back, renew and effect payment of promissory notes and bank documents as well
as approve and sign at the back of shipment receipts, bond certificates or any other
documents of the Company;
f. Employ and dismiss workers and agents of the Company, determine their salaries,
bonus and other conditions attached to employment and termination;
g. Open bank accounts in the name of the Company and credit its payments as well as
sign its financial statements;
h. Determine purchase and sales, and approve their orders, which are necessary for the
running of the Company;
i. Conclude any contracts of business transaction of the Company with third parties;
j. Take necessary actions on behalf of the Company regarding suits in which the
Company is a plaintiff, a defendant or an intervening third party in any court of law;
k. Cause and take appropriate measures for the efficient keeping of outflow and inflow
of accounts of the Company to be submitted and approved by its members;
l. Delegate any other person in the name of the Company when it is necessary to
execute some of the duties assigned to him here in above for the achievement of the
purposes of the Company.
Article 15
Liability of the General Manager
The General Manager shall be liable to the Company and to third parties for any breach of
his duties.
Article 16
Auditor
1. The Auditor of the Company shall be appointed for a term of three years and may be
reappointed for another year term.
3. The Auditor shall be liable to the Company and to third parties for any fault committed in
the exercise of his duties.
Article 17
Financial year
The financial year of the Company starts at July 8(Hamle 1) and ends at July 7(Sene 30).
Article 18
Accounts of the Company
1. The General Manager shall prepare the balance sheet at the end of each financial year and
hand over the same to the auditors and members of the Company for examination and
approval.
2. Documents disclosing the yearly state of the Company, balance of the account, the
condition of profits and Losses, inventory of its assets and report of the General Manager
or the auditors shall be sent regularly to each member of the Company.
Article 19
The net profits of the Company shall comprise the net receipts for the financial year less
any payments for general costs and other charges including payments for contractual
obligations, amortization and allowance.
Article 20
Five percent (5%) of the net profit shall be transferred to the reserve fund every
year until it amounts 20% of the capital as laid down in the Commercial Code of
Ethiopia.
Article 21
Distribution of Profits
The profit of the Company shall be divided among the shareholders in proportion to their share
in the Company.
Article 22
Applicable Law
Article 23
Amendment
The shareholders of the Company may amend the provisions of these Articles of
Association or the Memorandum of Association at any time in accordance with the
relevant provisions of the Commercial Code.
Article 24
Dispute Resolution
1. Any dispute which may arise between partners/shareholders shall, if possible,
be settled amicably.
2. If any such dispute cannot be settled amicably within two months following the
date on which the dispute has been raised by the partner through written
notification to the other partner, it shall at the request of either parties, be
submitted to an arbitration tribunal for resolution, without prejudice to the
parties right to submit a dispute to a competent federal court of Ethiopia, to
one of the following fora:
3. Any arbitral award rendered pursuant to this Article shall be binding on the
parties to the dispute.
4. If the parties to the dispute choose to submit their case to an ad-hoc tribunal as
provided for in sub-article (2)(b) of this Article, the tribunal shall be set up as
follows:
a. The arbitration tribunal shall be set up from case to case, each party
appointing one member. These two members shall then agree upon a
neutral member as their chairperson, to be appointed by the parties to
the dispute. The members shall be appointed within one month, and the
chairperson within two months, from the date either party to the
dispute, has advised the other party of its wish to submit the dispute to
an arbitration tribunal.
b. If within the periods specified in sub-article (4) (a) of this Article the
necessary appointments have not been made, either party may, in the
absence of any other agreement, involve the head of one of the
arbitration institute registered in Ethiopia (like the Director of the Addis
Ababa Chamber of Commerce and Sectoral Associations Arbitration
Institute, Ethiopian Conciliation and Arbitration Center) to make the
necessary appointments.
c. Unless the parties to the dispute decide otherwise, the Arbitral Tribunal
shall lay down its own procedure.
Article 25
LIQUIDATION
ARTICLE 26
APPLICABLE LAW
For matters not covered in this Articles of Association, the relevant provisions of the
Commercial Code shall apply.
IN WITNESS THEREOF, we, members of the Company have affixed our signature hereto
and have caused these Articles of Association to be authenticated on the 15th day of
December, at Mexico.
Name of founding members Signature
1. RIYAD AMIR ___________________
2. HAYELOM TESFAYE ___________________
3. Hikma Herat ___________________
4. BEZAWIT Beshah ___________________
5. Tsedeniya SISAY ___________________
6. EYERUSALEM Deribe ___________________
UNITY UNIVERSITY
DEPARTMENT OF ACCOUNTING
AND
FINANCE
GOVERNMENT & NON PROFIT
ACCOUNTING ASSIGNMENT
Name ID
1.HIKMA HERAT. 73739R
SECTION: BA1R1N2/11
PART TWO
COMMERCIAL REGISTER
5. Registration in the Commercial Register
1/ No person shall obtain any kind of business license without being registered in
commercial register.
2/ Any person shall be registered in the commercial register at the place where the head
office of his business is situated;
3/ Any person shall register in the commercial register only once even though he
conducts different kinds of business activities in different regions.
4/ Any person who opens branch offices at various places shall register these branch
offices at his original registration before commencing business and immediately notify
the registering office situated at the places where the branch offices are to be opened.
5/ When any person is being registered in the commercial register pursuant to
Commercial Code, it shall be effected by verifying that the company name entered in the
commercial register shall not cause conflict of interest against another business person.
6/ Founders or members of a business organization shall sign their memorandum and
articles of association at the Document Authentication and Registration Agency,
according to standardized samples of memorandum and articles of association sent to
the same office by the registering office, before applying for commercial registration,
except any amendments to these signed and registered memorandum and articles of
association.
7/ Founders or members of a business organization shall, before signing the
memorandum and article of association, apply to the registering office and get
verification that another business person has not occupied the name of the business
organization.
8/ Where the successors and the spouse of a sole proprietor who was engaged in a
business, do not want to form a business organization to resume the business, one of the
successors or the spouse can be registered in the commercial register according to the
power of attorney given to him by the successors and/or the spouse.
9/ The agreement of founders or members of the business organization on the valuation
of contribution in kind shall be stipulated in the memorandum of association or in the
amendment of the memorandum of association.
Conducting Commercial Registration
1/ An application for commercial registration shall be submitted before the
commencement date of commercial activity by filling a prescribed form and attaching
documents specified under the regulations and directives issued for the implementation
of the Proclamation.
2/ Where an application submitted for commercial registration is found acceptable by
the registering office, the registering office shall register the application, upon payment
of service fee, and issue a certificate of registration to the applicant; provided, however,
if the application for registration is rejected, the registering office shall immediately
notify the applicant in writing by stating the reason for rejection.
3/ Foreign business persons engaging in mining sector, federal public enterprises,
commercial representatives, foreign business persons, foreign business persons that
engage in business by winning international bids, foreign business person desirous of
acquiring a local business in its present condition and engage in business, associations
authorized to engage in business under other laws, and sectoral associations to be
organized at federal level as well as foreign branch offices of chambers of commerce
whose engagement is found to be important by the Minister shall be registered by the
Ministry.
4/ Regional public enterprises and sectoral associations organized at different
hierarchies of the regions shall be registered by regional organs administering
commerce.
5/ Any person who wants to engage in business category to which the license is issued
by the Ministry, may directly apply to the Ministry for commercial registration.
6/ An objection filed in accordance with law shall bar a sole proprietor or a business
organization from registration in the commercial register.
7. Validity of Commercial Registration and
Legal Personality of Business Organizations
1/ Business organizations shall attain legal personality upon registration.
2/ Business organizations shall be publicized on a newspaper having nationwide
circulation at the time of their establishment.
3/ The commercial register shall be open to the public at large; third parties are also
entitled to look into the register.
4/ Any commercial registration shall be valid as of the date of the applicant’s
registration in the commercial register in accordance with the provisions of this
Proclamation.
8. Forwarding of Information and Documents Relating to Registration
1/ The regional organs administering commercial activities or the Ethiopian Investment
Commission, upon conducting commercial registration pursuant to this Proclamation
shall immediately forward the documents of the registration to the data base of the
Ministry.
2/ The Ministry shall immediately enter into the Central Commercial Register the data
forwarded to it pursuant to sub-article (1) of this Article and documents of registration
conducted by itself.
9. Taxpayer’s Identification Number
1/ The registering office, before entering into the commercial register the business
organization or the commercial representative applying for registration, shall request in
writing the tax collecting authority to assign taxpayer’s identification number.
2/ The tax collecting authority shall notify the registering office the taxpayer’s
identification number assigned to a business organization under establishment or a
commercial representative.
3/ The registering office shall enter into the commercial register the taxpayer’s
identification number assigned by the tax collecting authority to the business person or
the commercial representative applying for registration as special identification number
of registration.
10. Alterations or Amendments to a Commercial Registration
1/ Any alternation or amendment on commercial organization registration shall be
registered with the registering office within 60 days after its authentication by a notary.
2/ Where the application for registration of alternation or amendment on commercial
registration is accepted, the registering office shall issue confirmation of acceptance of
the alteration or amendment to the commercial registration and notify the applicant and
concerned entities in writing details of the alteration or amendment entered into the
commercial register. Until written confirmation is issued, it shall not be recognized that
the alteration or amendment submitted is entered in the commercial register.
3/ The registering office may cancel any alteration or amendment already entered in the
commercial register if it believes that it was registered inappropriate and shall notify the
applicant in writing the detail grounds of the cancellation.
4/ Requirements stated in this Proclamation for commercial registration shall be
applicable for alternations or amendments to a commercial registration, as appropriate.
5/ Original copies of memorandum and articles of associations of business organizations
to which amendments and alterations are made shall be authenticated by the notary
when they are submitted to registering office pursuant to this Proclamation.
11. Cancellation of Commercial Registration
1/ Without prejudice to the provisions of the Commercial Code, the registering office
may cancel a commercial registration, without any precondition, where:
a) the business person abandons his business activity for any reason;
b) an administrative measure is taken or court decision is passed on the business person
not to continue with his business;
c) the business person was registered by submitting false information or document;
d) the business person is found to have violated this Proclamation or regulations and
directives issued for the implementation of this Proclamation;
e) the business person fails to obtain a business license within one year after being
entered in the commercial register.
2/ Where a business person engaged in manufacturing or engineering or other similar
investment commercial activities after getting registered pursuant to paragraph (e) of
sub-article (1) of this Article is able to produce sufficient and acceptable evidence to
justify the causes of incompletion of investment activities and for not obtaining business
license, his registration may remain valid if he applies within two years during which
business license renewal period runs and gets approval.
3/ Any business person whose commercial registration is cancelled pursuant to sub-
article (1)(a) of this Article may conduct the same registration again at anytime.
4/ The registering office shall, before cancelling the commercial registration pursuant to
paragraph (b) of sub-article (1) of this Article, send a written letter to a business person
at his registered address and give him opportunity to submit his objection, if any.
5/ Where the business person, within 30 days after receipt of the letter, fails to submit
his objection or his objection is not legally valid, or it is not possible to find the business
person at his registered address, the commercial registration shall be cancelled from the
register.
6/ The business person whose registration is cancelled pursuant to paragraph (b), (c)
and (d) of sub-article (1) of this Article may be reregistered after one year to be counted
from the date of cancellation of his registration, unless there is administrative measure
or court decision which prevents such re-registration.
7/ Cancellation of registration of business organization shall come into force one month
after publication of notice of cancellation on a newspaper having wider circulation at the
expense of the applicant; in the case of sole proprietor, however, the cancellation shall
become effective as of the date of its entry into the register and without the need to
publicize.
8/ If a business license of a business person is cancelled, his commercial registration
shall also be cancelled, unless other additional business licenses are issued based on the
same commercial registration.
12. Issuance of Substitute Certificate of Commercial Registration
Any business person whose certificate of commercial registration is lost or damaged
may obtain a substitute certificate of registration pursuant to the criteria set forth in the
regulations issued for the implementation of this Proclamation.
13. Issuance of Copies of Entries
1/ Any person or business person requesting a copy of entry made in commercial
register, a copy of an extract of entry, a certificate of no entry or a certificate of
cancellation or registration shall submit a written application to the registering office.
2/ For the application lodged pursuant to sub-article (1) of this Article, the registering
office shall, upon payment of the prescribed service fee, immediately provide the
information if it is subject to disclosure.
PART THREE
REGISTRATION OF TRADE NAME
14. Trade Name
1/ Trade name of a sole proprietor shall include the individual’s first name, his father’s
and grand-father’s names; where the a sole proprietor’s name has already been
registered, his great grandfather’s name shall be added; if the great-grand father’s name
already registered, the individual’s mother’s name shall be added; if the mother’s name
is also found to have been occupied by other sole proprietor, a different identification
shall be used.
2/ Trade name of a general partnership shall be given pursuant to the Commercial Code
by specifying the commercial sector of engagement.
3/ Trade name of a limited partnership shall be given pursuant to the Commercial Code
by specifying the commercial sector of engagement.
4/ Trade name of a share company shall be decided by the shareholders pursuant to the
Commercial Code by specifying the commercial sector of engagement.
5/ The trade name of a private limited company shall be decided by the shareholders
pursuant to the Commercial Code by specifying the commercial sector of engagement.
15. Registration of Trade Name
1/ Any business person shall cause registration of his trade name at the place where his
commercial registration is conducted.
2/ Any business person shall cause registration of his trade name at the place where he
obtains a business license.
3/ Name of a business organization may be registered as trade name if it meets the
requirements provided in this Proclamation for trade name.
4/ Where the applicant is a foreign business organization, such applicant shall submit to
the registering office, accompanied with his application, notarized certificates of
commercial and trade name registrations or other legally acceptable evidence issued
from the country where the business organization is registered.
5/ The name of business organization shall appear on the certificate of commercial
registration; whereas the trade name shall appear on a separate certificate of the
business license.
6/ Application for registration of trade name shall be submitted by filling the form
prepared for the same purpose and be accompanied by documents specified in the
regulations.
16. Causes Preventing Registration of Trade Name
1/ The registering office shall refuse registration of trade name on the following
grounds:
a) where the trade name requested for registration is identical to a trade name or name
of business organization previously registered or has misleading similarity to such
name;
b) where the trade name requested for registration is identical or misleadingly similar to
the name of government institution, religious institution, a political party, a nation,
nationality, peoples, tribes and clans, any other business organization or association,
organizations of nations or states, charities and societies;
c) where the trade name includes the name of a celebrity and no written consent of such
celebrity is submitted along;
d) where the trade name requested for registration does not include the sector of
business;
e) where the trade name requested for registration is renowned in Ethiopia or around
the world even though it is not registered in Ethiopia and no written permission issued
to use the name;
f) where the trade name is contrary to commendable conduct or ethical values;
2/ Where the trade name has been used by the business person for a long time, but is
not permitted for registration pursuant to this Proclamation and was not registered, the
registration of such trade name may be effected by the decision of the relevant authority.
3/ The Ministry shall issue directive for the implementation of the provisions of this
Article.
17. Effect of Entry of a Trade Name in the Trade Name Register
1/ The registration of a trade name shall be a prima facie evidence of entitlement to use
that trade name.
2/ The mere prior registration of name of business organization or a trade name shall
not prevent the registration of the same trade name for a business with an entirely
different nature.
18. Cancellation of a trade name
1/ The registering office may cancel a trade name registration on the following grounds:
a) where the business person that has caused the registration applies for its cancelation;
b) where it is proven that the trade name was fraudulently or erroneously registered;
c) where the commercial registration and business license of the business person is
cancelled in accordance this Proclamation;
d) where a court of law renders decision by nullifying the registration of a trade name ;
e) where alteration or amendment are introduced into the trade name in accordance
with the provisions of this Proclamation;
f) where a business organization is dissolved and wound-up.
2/ The registering office shall, before cancelling the registration of the trade name
pursuant to paragraph (b) of sub-article (1) of this Article, send a written letter to a
business person at his registered address and give him opportunity to submit his
objection, if any.
3/ Where the business person, within 30 days after receipt of the letter, fails to submit
his objection or his objection is not legally valid, or it is not possible to find the business
person at his registered address, the trade name shall be cancelled from the register.
4/ Where the former user of the trade name whose registration is cancelled applies to
obtain evidence of prove of the cancellation, the registering office shall issue such
evidence upon payment of appropriate service fees.
5/ The business person may reclaim the trade name registration cancelled pursuant to
paragraph (a) of sub-article (1) of this Article.
6/ The business person whose trade name registration is cancelled pursuant to
paragraphs (b) and (c) of sub-articles (1) of this Article may be reregistered after one
year to be counted from the date of cancellation of his registration, unless there is
administrative penalty or court decision which prevents such re-registration.
19. Alternations or changes to a trade name
The provisions of Article 15 of this Proclamation shall apply for a business person who
applies to alter or amend his trade name.
20. Substitute Certificate of Trade Name Registration
The provisions of the regulations issued pursuant to this Proclamation shall apply for
any business person who applies to obtain a substitute certificate of trade name
registration.
PART FOUR
BUSINESS LICENSE
21. Power of Issuing Business license
1/ Notwithstanding the provisions of this Proclamation and other relevant laws the
appropriate authority shall issue business license.
2/ Without prejudice to the generality of sub-article (1) of this Article, the relevant
authority shall issue business license based on the detailed Ethiopian Business License
Issuing Categories to be determined in the directive of the Ministry.
3/ The relevant authority and other organs authorized to issue licenses shall specifically
state the business category under which the license is issued and its identification
number while issuing business license.
4/ Notwithstanding the provision of sub-article (1) of this Article, relevant government
organs shall issue business licenses in compliance with this Proclamation and other
relevant laws for the following businesses:
a) prospecting and mining of minerals;
b) various water works services, excluding water works construction services;
c) banking, insurance and micro finance services;
d) air transport services and other aviation services;
e) commercial activities involving the use of radioactive materials and radiation emitting
equipment;
f) telecommunication services;
g) the business or generating or transmitting or distributing or selling electricity;
h) repairing and maintain of arms and firearms and sale of explosives;
i) sea and inland water ways transportation services;
j) multimodal transport services;
k) broadcasting services.
5/ Government organs authorized to issue business licenses for the types of businesses
listed under sub-article (4) of this Article shall, when issuing and renewing business
license, make sure that the requirements provided for in this Proclamation and the
regulation and directives issued hereunder are met.
22. Obtainment of Business license
1/ No person shall engage in a business activity without having a valid business license.
2/ A business person having a valid business license pursuance to this Proclamation
shall not be required to obtain additional business license for branches he open for the
same type of business activity.
3/ A business person licensed to engage in manufacturing business shall not be required
to obtain a business license to wholesale his products only at the same address of his
manufacturing facility or at such other address of his registration.
4/ A business person licensed to engage in a manufacturing business shall not be
permitted to sell his products on retail; provided, however, that types of products in
respect of which retail sales is permitted shall be determined by a regulations to be
issued by the Council of Ministers.
5/ A licensed importer shall not be required to obtain a separate business license to
wholesale products he import at his address of business registered at the time of
commercial registration.
6/ No licensed importer shall retail goods he import; provided, however, based on type
of business and national significance, types of products in respect of which retail sales is
permitted under special condition shall be determined in a regulations to be issued by
the Council of Ministers.
23. Application for business license
Any person desiring to engage in a commercial activity shall submit to the appropriate
authority an application for business license by completing application form prepared
for this purpose accompanied with important documents prescribed in the regulations
issued by the Council of Ministers.
24. Issuance of Business license
1/ Where an application for business license is submitted to the relevant authority
pursuant to this Proclamation, regulations and directives issued hereunder, it shall issue
a business license to the applicant upon payment of appropriate service fee by
ascertaining that the requirements set are fulfilled and that the business activity
intended to be carried on is not prohibited by law.
2/ Where the relevant authority ascertains that the application for business license is
not submitted by fulfilling the requirements provided in this Proclamation, regulations
and directives issued hereunder, it shall reject the application and notify the applicant in
writing the reasons for rejecting the application.
3/ Where the successors and the spouse of a sole proprietor person who was engaged in
a business, do not want to form a business organization to resume the business, a
business license can be issued in the name of one of the successors or the spouse in
accordance with the power of attorney given to him by the other successors and/or the
spouse after being registered in the commercial registered pursuant to this
Proclamation.
25. Rights of a Business Person Issued Business license
Any person issued with a business license shall have the following rights:
1/ to engage in a business activity within the scope the business license and in
compliance with this Proclamation, regulations and directives issued hereunder and
provisions of other laws related to business activity;
2/ not be compelled to obtain additional business license for branches he opens to
engage in a similar business;
3/ to obtain information on commercial registration and licensing service;
4/ to alter or amend commercial registration, trade name and business in accordance
with this Proclamation;
5/ to carry out other similar activities that are permitted the Proclamation, regulations
and directives issued hereunder.
26. Obligations of a Business Person Issued Business license
Any person issued with a business license shall have the following obligations:
1/ carry on the various business activities for which business licenses have been issued
in a separate places or premises, where carrying on such activities at the same place or
premises endangers public health and safety or property;
2/ display a price list for his goods and services by posting such list in a clearly
noticeable place in his business premise or by affixing price tags on the goods;
3/ comply with the obligation that the nature of the business activity demands, fulfill
standards and render service;
4/ display his business license in clearly noticeable places within the business premises,
or in case of branch business offices display copies of business license affixed with seal
of the licensing authority;
5/ shall not assign his business license to the benefit of any person, pledge or lease it
out;
6/ shall not make use of his business license, where administrative or court decision is
passed to dissolve a business organization or to ban a sole proprietor;
7/ shall notify to the registering office within one month in case of change of his
business address;
8/ if it is a share company or private limited company shall cause audit of his financial
statements by auditor every fiscal year and submit reports;
9/ shall provide information requested by concerned offices with respect to his business;
10/ shall not transact at similar level; and
11/ shall comply with administrative measures taken by concerned authorities and other
obligations provided for in other laws.
27. Renewal of Business license
1/ A business license shall be renewed in six months period within the fiscal year
between from Hamle 01 until Tahsas 30 or in his registered budget year.
2/ The business license of private limited companies three forth of whose registered
capital is lost shall not be renewed; provided, however, the license may be renewed upon
presentation of authenticated minutes to prove that 50 % of the registered loss has been
deposited by the shareholders.
3/ A business person desirous to renew his business license shall fill the form prepared
for the same purpose and submit accompanied with documents specified in the
regulations issued hereunder.
4/ The holder of a business license who has failed to have it renewed within the time
specified in sub-article (1) of this Article shall have it renewed within the time from Tir
01 to Sene 30 by paying, in addition to renewal fee, Birr 2,500 (two thousand five
hundred) for the month of Tir and Birr 1,500 (one thousand five hundred) for each
subsequent month of delay.
5/ A business license not renewed within the period of renewal with penalty as
determined in sub-article (4) of this Article shall be cancelled by the relevant authority.
6/ Where a business license is cancelled pursuant to sub-article (5) of this Article and
the justification presented by business person as force majeure that prevented him from
renewing his license is accepted by the relevant authority, he can obtain his business
license upon payment of the penalties prescribed under sub-article (4) of this Article
within one year after the cancellation.
7/ Where renewal of the business license is not permitted pursuant to sub-article (4) of
this Article, the business person may obtain the same business license without penalty
one year after cancellation of the business license.
28. Period of Validity of a Business license
1/ A business license issued pursuant to this Proclamation shall remain valid provided
that it is renewed and is not cancelled pursuant to the provisions of the Proclamation.
2/ Without prejudice to Article 27(6) of this Proclamation, the business license shall be
invalid, if not renewed within six months after the expiry of the budget year in which it
has been issued or renewed upon payment of the appropriate fee,.
29. Suspension of Business license
1/ A relevant authority may suspend business license on the following grounds:
a) Where the business person fails to meet occupational, health and sanitation,
environmental protection, accident prevention standards and qualities of goods and
services;
b) Where the business person fails to discharge obligations of a business person clearly
specified in this proclamation;
c) Where the business person fails to provide information accurately and timely upon
the request of the relevant authority;
d) Where it is verified that the license was issued or renewed based on falsified
document;
e) Where the license is used by the holder for an unauthorized purpose;
f) Where the business person is unavailable at the registered address;
g) Where the business person is found to have violated the Commercial Code, the
Proclamation, the regulations and directives issued hereunder,
the license may be suspended by the authorized official;
2/ In the case of suspension of business license on the grounds of violation of the
provisions of this Proclamation, regulations or directives issued hereunder; when a
relevant sector office verifies violation of provisions of the Commercial Code or a court
of law passes an order of suspension, the business facility shall be immediately sealed;
3/ When business license is suspended due to violation of the provisions of this
Proclamation, regulations and directives issued hereunder, the relevant authority shall
notify the holder of the business license in writing the cause of the suspension and
measures that need to take within reasonable period of time to rectify the shortcomings
that led to the suspension.
4/ Where the defects caused the suspension of the business license is rectified within the
time prescribed under sub-article (3) of this Article, the suspension shall be lifted and
the business license become valid.
5/ The suspension of certificates of competence by relevant competence assuring
institutions shall entail suspension of the corresponding business license without any
precondition.
30. Cancellation of Business licenses
1/ A relevant authority may cancel business license on the following grounds:
a) where the business person terminates his business activity by his own choice;
b) where it is verified that the business license was issued or renewed based on falsified
document;
c) where the business person has utilized the business license for an unauthorized
purpose;
d) where the business person fails to rectify defects that resulted in the suspension of his
business license within the time given;
e) where the business person is declared bankrupt;
f) where the business person fails to have his license renewed under the provisions of
this Proclamation;
g) where the commercial registration of the business person is cancelled under this
Proclamation.
2/ A business person who had terminated his business activities under paragraph (a) of
sub-article (1) of this Article and returned his license within the statutory timeframe of
renewal of licenses may obtain the license again at any time of his choice; provided,
however, if he had failed to return the business license before expiry the period of
renewal without to pay penalty, he shall only be allowed to obtain the business license
again after a year has elapsed since expiry of the period of renewal without penalty.
3/ The relevant authority, before deciding to cancel the business license pursuant to
paragraph (b), (c) and (d) of sub-article (1) of this Article, shall notify the business
person at his registered address by a letter to submit his objection in writing, if any; if
the objection of a business person is not found to be satisfactory or the business person
fails to submit his objection within 30 days of receipt of authority’s letter, his license
shall be cancelled. Under such circumstances, he shall only be able to obtain the same
business license after two years.
4/ A business person who terminates his business activities but does not return the
business license within the statutory period of renewal shall be allowed to obtain
another business license for a commercial activity included in the same business
category he had issued license and cancelled after one year of expiry of the period of
renewal without penalty.
5/ Where a business person whose business license is returned or cancelled is desirous
of obtaining the same business license again he shall submit confirmation letter of
settlement of tax liability for the period the returned or cancelled business license was
valid.
6/ Cancellation of certificates of competence by competence assuring institutions shall
entail cancellation of the corresponding business license without any precondition.
31. Obtainment a Substitute Business license
1/ A business person who has his business license lost or damaged may obtain a
substitute business license when he meets with his application the requirements
provided for in the regulations issued hereunder.
2/ A business person whose license is damaged shall return such damaged when he
applies for a substitute.
3/ The relevant authority to which the application is made under sub-article (1) of this
Article shall require presentation of evidence from appropriate body or police and upon
payment of appropriate fee issue the substitute business license.
32. Issuance of Business license Upon Transfer of a Business
1/ A business may be transferred to another person through sale, donation, inheritance
or in a similar manner.
2/ A business may be transferred pursuant to sub-article (1) of this Article, provided that
it is published on a newspaper having nationwide circulation by the expense of the
business person and no objection is lodged against or any suspension order issued after
one month of publication.
3/ Tax clearance evidence from the tax collecting authority for the period the license had
been in use shall be presented before the transfer of a business.
4/ The relevant authority shall verify appropriate information, make sure the former
business license is returned and issue the same business license to the business person
to whom the business is transferred.
5/ Where the relevant authority rejects the application made under this Article, shall
notify the applicant in writing and the reasons thereof.
PART FIVE
1) Certificate of Competence
1/ The relevant sector offices shall issue directive on criteria for issuance of certificate of
competence for types of business activities that need competence certificate as
determined in the regulations issued pursuant to this Proclamation; and issue the
certificate competence.
2/ Government offices authorized to issue certificates of competence under the
provisions of this Proclamation, regulation and directives issued hereunder and on other
laws shall issue certificates of competence accordingly.
3/ Where there is change in address or criteria corresponding to the certificate of
competence issued, the previously issued certificate of competence shall be changed by
new certificate of competence by indicating the new address or new criterion.
4/ Certificate of competence shall be obtained as prerequisite to obtain a business
license for business license determined by directive to have certificate of competence.
5/ Without prejudice to the provision of sub-article (4) of this Article, the Ministry shall
determine, in consultation with other sector offices, the business sectors which do not
require certificate of competence as prerequisite for issuance of business license.
6/ Sector offices shall consult concerned business persons engaged in the sector while
determining criteria for certificates of competence.