Ethiopia

Ease of Doing Business in

Ethiopia

This page summarizes Doing Business 2014 data for Ethiopia. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Sub-Saharan Africa
Income Category Low income
Population 91,728,849
GNI Per Capita (US$) 410
City covered Addis Ababa
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
125 124 down -1

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
57.56 55.94 down 1.62
 

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2014 Rank 166 DB 2013 Rank*** 162 Change in Rank down-4
DB 2014 DTF** (% points) 61.43 DB 2013 DTF** (% points) 53.99 Change in DTF** (% points) up7.44

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Ethiopia Sub-Saharan Africa OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
9 8 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
15.0 29.7 11.1

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
100.1 67.4 3.6

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

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Paid-in Min. Capital (% of income per capita)
184.2 125.7 10.4
No. Procedure Time to Complete Associated Costs
1 Reserve a unique company name 1 day no charge
2 Authentication of the company documents and the lease agreement at the Documents Authentication and Registration Office (DARO) 2 days ETB 390
3 Submit documents and obtain a letter from the Commercial Registry to open a bank account 1 day no charge
4 Open a bank account 1 day no charge
5 Register and obtain the commercial registration certificate 1 day ETB 80
6 Make a company seal 2-3 days ETB 100
7 Register with Ethiopian Revenue and Customs Authority for income tax and VAT 2 days no charge
8 Obtain a business license 1 day ETB 80
9 Install a cash registration machine 1-5 days ETB 5,000-10,000

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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