Ethiopia - Apply for Capital Goods Leasing Business License or Permit

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Procedure

Apply In-Person:

1. To Apply for Capital Goods Leasing Business License or Permit, the applicant has to approach National Bank of Ethiopia link
2. Applicant has to get the form from the respective officer.
3. Applicant has to fill-in all the necessary details in the application form.
4. Make sure that the applicant has to attach the documents mentioned in the “Required Documents” section of this page.
5. Applicant has to attach the photocopies along with the application form.
6. Submit the completed form and the necessary documents to the officer.
7. The applicant has to pay the Investigation fee of Birr 5,000 and Licensing fee of Birr 5,000.
8. The authority officer will review the application and process the application.
9. Once the process is completed, the certificate is given to the applicant within the stipulated processing period of time.

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Required Documents

• 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

Office Locations & Contacts

National Bank of Ethiopia
P.O Box: 5550
Tel: +251 115 517 430
E-mail: [email protected]
Fax: +251 115 514 588
Contact details link
Office location link

Ministry of Trade and Industry
Arada subcity,
worda 09 Basha welde chilot,
Addis Ababa, Ethiopia
Tel፡- 0115513990
Email: [email protected]
Contact details link

Eligibility

• A Capital Goods finance leasing 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.

Fees

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

• Investigation fee of Birr 5,000 and
• Licensing fee of Birr 5,000.

Validity

• Validity for the license is for one year.

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• The Processing time of this procedure takes up to 45-60 days.

Related Videos

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.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

• Applicant must complete the application form before submitting. Incomplete applications will not be accepted.
• Applicant must provide genuine information while applying for this procedure.

Required Information

• Proposed name of the capital goods finance leasing 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.

Need for the Document

• To run your capital goods Finance leasing 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.
• 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.

Information which might help

Business plan stating 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 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.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

Place some other external links.

Others

More information which might help people.