How many shareholders do you need to start a company in Ethiopia?
Initially I understood that an Ethiopian entity should consist of at least two shareholders. When reading the documentation of EIC, I don’t find this stated exactly in the brochure. Thus my questions would be if an Ethiopian company can be established by one shareholder?
Dear Mr Becx,
Ethiopian company law requires minimum of two shareholders to establish a company. So one man company is not allowed in Ethiopia. However, if one of the shareholders is incorporated as one man company and wants to establish a company in Ethiopia with another shareholder, the foreign one man company is accepted as such under Ethiopian law.