Ethiopia

Ease of Doing Business in

Ethiopia

This page shows summary Doing Business 2012 data for Ethiopia. The first table lists the overall "Ease of Doing Business" rank (out of 183 economies) and the rankings by each topic. 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 84,975,606
GNI Per Capita (US$) 380.00
Doing Business 2012 Rank Doing Business 2011 Rank Change in Rank
111 104 down -7
Topic Rankings DB 2012 Rank DB 2011 Rank Change in Rank
Starting a Business 99 91 up -8
Dealing with Construction Permits 56 57 up 1
Getting Electricity 93 84 up -9
Registering Property 113 105 up -8
Getting Credit 150 130 up -20
Protecting Investors 122 120 up -2
Paying Taxes 40 35 up -5
Trading Across Borders 157 156 up -1
Enforcing Contracts 57 56 up -1
Resolving Insolvency 89 87 up -2

Economy Profile

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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 2012 Rank 99 DB 2011 Rank 91 Change in Rank down-8
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)
5 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)
9 37 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.

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Cost (% of income per capita)
12.8 81.2 4.7

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)
333.5 129.8 14.1
No. Procedure Time to Complete Associated Costs
1 Check the company name for uniqueness 1 day no charge
2 Authentication of the company documents at the office of registration of Acts and documents 2 days ETB 390
3 Register the company document at the Commercial Register and obtain the trade license 1 day ETB 85
4 Register with Ethiopian Inland Revenue Authority and Customs for income tax and VAT 2 days no charge
5 Make a company seal 3 days ETB 100

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