Ethiopia

Ease of Doing Business in

Ethiopia

This page summarizes Doing Business 2013 data for Ethiopia. The first table lists the overall "Ease of Doing Business" rank (out of 185 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

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Economy Summary
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
Region Sub-Saharan Africa
Income Category Low income
Population 84,734,262
GNI Per Capita (US$) 400
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
127 125 down -2

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
54.3 53.1 down 1.2
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 163 163 No change
Dealing with Construction Permits 53 57 up 4
Getting Electricity 94 94 No change
Registering Property 112 116 up 4
Getting Credit 104 152 up 48
Protecting Investors 128 124 up -4
Paying Taxes 103 58 up -45
Trading Across Borders 161 160 up -1
Enforcing Contracts 50 48 up -2
Resolving Insolvency 117 93 up -24

Economy Profile

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Additional Data

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Starting a Business

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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 2013 Rank 163 DB 2012 Rank 163 Change in Rank 0
DB 2013 DTF** (% points) 55.2 DB 2012 DTF** (% points) 45.9 Improvement in DTF** (% points) up9.3
YearNew business densityNumber of new limited liability companies
2009 0.031,327
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).

View methodology 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.

View methodology Time (days)
15 34 12

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.

View methodology Cost (% of income per capita)
135.3 67.3 4.5

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.

View methodology Paid-in Min. Capital (% of income per capita)
249.1 116.0 13.3
No. Procedure Time to Complete Associated Costs
1 Check the company name for uniqueness 1 day no charge
2 Authentication of the company documents and of the lease agreement at the office of registration of Acts and documents 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 Inland Revenue Authority and Customs for income tax and VAT 2 days no charge
8 Obtain 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 indicators across all economies included in Doing Business since each indicator was 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...

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