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DWQA QuestionsCategory: Investing and business formationHow many shareholders do you need to start a company in Ethiopia?
Profile photo of SelamSelam Staff asked 6 years ago

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? 

1 Answers
Profile photo of SelamSelam Staff answered 5 years ago

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.