Start-up businesses in Ethiopia are no longer required to present minimum capital statements for registration, if the Draft Bill for Commercial Registration and Business Licensing presented to the House today, is approved by Parliament this coming Friday.
The Bill is the second of its kind in the country after the over 50-year-old law was revised five years ago. The Bill was tabled to amend laws adopted five years ago.
Among other changes to the existing provision, as a move to encourage start-ups, the Bill does not require new businesses to present a statement of minimum capital as a prerequisite for registration. Furthermore, the draft has extended the four-month business renewal window to six months starting from July to December without having to close their businesses or be restricted from being entitled to benefits.
The House Speaker has urged finalization of the recommendations for the Bill to be brought to the floor for a final vote within two days.