Apply In-Person:

1. Application form for obtaining Business License of a capital goods finance company is available in the Ethiopian Ministry of Trade and Industry contact link
2. Applicant must fill-in all the necessary details in the application form.
3. Applicant must make sure to carry documents that are listed under the “Required Documents” section of this page (Both photocopies and originals).
4. Applicant must attach the photocopies of the documents (whichever is necessary) along with the application form.
5. A company applying to obtain new capital goods finance business license shall pay
   • Investigation fee of Birr 5,000; and
   • Licensing fee of Birr 5,000.
   • A capital goods finance company applying for renewal of its business license shall pay renewal fee of Birr 5,000.
6. This procedure can be completed within two months and license will be issued to the applicant.
7. If the applicant didn’t get the license within two months, then, they have to visit the ministry to know details of the application.
   

Apply Online

1. Application form for obtaining a business license of a capital goods finance company is available in the following application link.
2. If the applicant is an existing user, they can login directly using their “Email or Mobile Number” and “Password”.
3. If the applicant is a new user, then, they have to register first before logging in.
4. The new user can register by clicking on the “Register” button.
5. Applicant has to enter all the required details for new registration.
6. Once the registration is successful, the applicant can login using their “Email or Mobile Number” and “Password”.
7. After logging in, the applicant has to find the necessary service and then start the application process.
8. Applicant has to provide all the necessary details in the online application form.
9. Applicant should upload the digital copies of documents (whichever is necessary) that are mentioned under the “Required Documents” section of this page.
10. Fee for this procedure can be paid online.
11. If all the above-mentioned procedures are followed properly, the applicant can get their license within two months.
12. Applicant can even check the status of their application online if the license has not been issued within two months.
    

• Business Plan
• macroeconomic analysis document
• Financial sector analysis Document
• strategic and operational plans,
• Evidence of registration of trade name from Ministry of Trade and/or Regional Trade Bureau.
• Signed minutes of first meeting of organizers along with attendance sheet.
• Submission of prospectus, which is a printed statement that describes and forecasts the course or nature of the company along with expected risks, to be distributed to prospective investors.
• Written application requesting to open blocked subscription account indicating the name of the banks/branches or microfinance institution.
• Duly completed application form, as specified under Attachments I and II of these Directives, for organizers and project manager.
• Properly completed propriety test questionnaire, as specified under Attachment III of these Directives, for organizers and project manager.
• Evidences of payment of investigation fee
  

Location: Addis Ababa
Address: Ethiopian Ministry of Trade and Industry, Adwa St, Addis Ababa, Ethiopia
Contact: +251115518025
Contact link

• A Capital Goods finance company may be established by any eligible corporate body or corporation duly licensed by the National bank of Ethiopia to deal in financial lease and hire purchase.
• A Capital goods finance company applicant must be an Ethiopian Nationality.
• All Individual or company registered for Finance lease and hire purchase Business in Ethiopia with the registrar of Companies.
  

A company applying to obtain new capital goods finance business license shall pay

• Investigation fee of Birr 5,000; and
• Licensing fee of Birr 5,000.
• A capital goods finance company applying for renewal of its business license shall pay renewal fee of Birr 5,000.
  

Valid for 5 years.

Please attach documents that might help. E.g. links

Please attach sample completed documents that would help other people.

The processing time for getting a business license is 60 days.

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.gIn the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

• No person shall carry out a Capital good finance company business unless he/she is in possession of a Capital goods Finance Company Business License.
• A person who fails to contravene or fail to comply with section of Commercial Code of Ethiopia shall be guilty of any offence and shall be dealt with in accordance with law.
  

• Proposed name of the capital goods finance companies (under formation)
• Name of organizing committee’s chairperson
• Full Name of Applicant
• Address of Applicant
• Location of capital goods Finance Business
• License Number
• A tax clearance certificate.
• Evidence of provisional tax payment
• Full names, addresses and designations of the employees of the CGFC.
• Proof of legal identification. Your national driver's license or international passport are the best for this.
• Proof of legal address. House rent receipts, and utility bills stating your house address are acceptable.
• Bank statement. Not all Authorities require this except for further verification purpose or alternatives.
• Utility Bill Receipt. Some Authorities require this to further verify your legal identity and proof of social responsibility.
  

• To run your capital goods Finance company business legally, there are certain federal finance licenses and permits you will need to obtain. These procedure resources will help you understand the requirements for your Capital goods Finance company business in Ethiopia.
• Ethiopia has a designed legal framework to govern the capital goods Finance company activities under commercial code of Ethiopia (CCE). The CGFC are licensed and regulated by the National Bank of Ethiopia Directives No. MFI/23/2013. Considering the separate needs and dynamics of Capital goods financial company, National Bank of Ethiopia has in place a separate regulatory and supervisory framework for CGFC.
• To promote the mainstreaming of Capital goods finance company into overall financial system, National Bank of Ethiopia encourages creation of new financial lease and hire Purchase and transformation of existing operationally sustainable CGFC. The presence of a large potential market and availability of an enabling policy environment offer the opportunities for both social and commercial investors to explore this segment of the financial market.
• The licensing, regulation and supervision of CGFC established under CCE Ordinance has been entrusted to National Bank of Ethiopia. No institution/person can commence operations as Capital Goods Finance company Bank unless granted license by the National Bank of Ethiopia.
• Capital Goods finance includes financial lease and hire-purchase. A Capital Goods Finance Company shall be established as share company as defined under the commercial code of Ethiopia.
  

Business plan must have at least the following

• Executive summary,
• Introduction,
• Macroeconomic analysis,
• Financial sector analysis,
• Capital goods finance sector analysis,
• Business environments,
• Products and services,
• Target sector and customer focus,
• Type/category of equipment’s and machineries to be leased,
• Organizational chart of the company with brief description of the functions of the main organizational units,
• Strategic and operational plans,
• Source of capital and finances,
• Accounting policies,
• Assumptions for financial projections,
• Financial projections for the first three years including balance sheet, income statement, cash flow projections, and
• Conclusion /recommendation.
  

A licensed capital goods finance company shall at all-time display in a conspicuous place its valid original business license in its head office and copy of the business license in its branches.

External link

Approval of Name

• Contact the National Bank of Ethiopia at an early stage for a preliminary meeting to discuss licensing requirements and related issues.
• Propose and book, in descending order of preference, at least three business names with the Registrar of Companies and Business Names.
• Submit the proposed names to the National Bank of Ethiopian descending order of preference accompanied by a brief concept paper on the proposed Capital good finance company, including evidence of sources and availability of capital. This should be done before incorporation of the proposed entity as a company limited by shares.
• The proposed name must incorporate the words Finance Company e.g. XYZ Housing Finance Company Limited
• The name approval is valid for 12 months from the date its granted by the National Bank of Ethiopia within which you should have received a license to carry out Capital goods finance Company business.