PROCLAMATION NO. 376/2003 A PROCLAMATION TO AMEND THE COMMERCIAL REGISTRATION AND BUSINESS LICENSING PROCLAMATION


PROCLAMATION NO. 376/2003

A PROCLAMATION TO AMEND THE COMMERCIAL REGISTRATION AND BUSINESS LICENSING

 PROCLAMATION

 

 

WHEREAS, it has been necessary to amend some provisions of the commercial Registration and Business licensing Proclamation No 67/1997 and to include some additional provisions to encourage investment.

NOW, THEREFORE, in accordance with Article 55 (1) of the Constitution of the Federal Democratic Republic of Ethiopia it is hereby proclaimed as follows:

1.         Short Title

This Proclamation may be cited as the “Commercial Registration and Business Licensing (Amendment) Proclamation No. 376/2003.”

2.         Amendment

The Commercial Registration and Business Licensing Proclamation No 67/1997 (as amended) is hereby amended as follows.

1/         The following new Sub-Articles (9), (10), (11) and (12) are added to Article 5 of the proclamation.

8.      Founders or members of a Business Organization shall sign their memorandum or Article of association at the office of the registration of Acts and documents, according to standardized samples of memoranda and Articles of Associations sent to same office by the appropriate Authority, before applying for commercial registration, except any amendments to these signed and registered memoranda and Articles of Association.

 

9.      Before signing their memoranda and Articles of Association, Founders or members of a Business organization shall get the verification of the appropriate Authority that the name of the Business Organization has not been occupied by another business person.

 

10.  Where, the successors of a sole Business person, who engaged in transport business, do not want to form a business organization, one of the successors can be registered in the commercial register according to the power of attorney given to him by the other successors.

 

11.  The agreement of founders or members of a Business organization on the valuation of contribution in kind shall be stipulated in the memorandum of association.

 

2/         Article 8 of the proclamation is being canceled and replaced by the following new Article 8.

 

8.                  Legal Personality of business Organization

 

1.                  Business Organizations shall acquire legal personality by registering in the commercial register with out being publicized in a newspaper as provided for under Article 87. 219, 220, 223, and 224 of the commercial code for their establishment and amendments to their memoranda of Associations.

 

2.                  The commercial Register of Business organizations shall be made open for the reference of third parties.

 

3/         Article 9 of the proclamation is being canceled and replaced by the following New Article 9.

 

9.                  Effective date of Registration

 

Any commercial Registration shall be effective from the date of the Registration of the applicant in the commercial register.

 

4/         Sub-Article (5) of Article 20 of the proclamation is being canceled.

 

5/         Sub-Article (2) and (3) of Article 22 of the proclamation are being canceled and replaced by the following new Sub-Article (2)            and (3) a new Sub-Article (4) is added.

 

2.      The applicant shall submit a signed verification that the requirements determined by directive issued by the appropriate Government institution, for the license applied for, are fulfilled. The appropriate authority shall inform the concerned government institution about the implementation of the directive.

 

3.      Without prejudice to the provision of Sub-Article (2) above, the Council of Ministers may be Regulations determine Businesses for which certificate of competence or ownership is needed and the Government offices which have to issue the same.

 

6/         The following new Sub-Article (3) is added to Article 23 of the proclamation.

3.      Where, the successors of a sole Business person, who was engaged                    in transport Business, do not want to form a business organization, a business license can be given in the name of one of the successors in accordance with the power of attorney given to him by the other successors, after being registered in the commercial register pursuant to Article 5 Sub-Article (11) of this proclamation.

 

7/         Sub-Article (3) of Article 25 is being canceled and replaced by the following new Sub Articel (3).

 

3.       The holder of a business license who has failed to have it renewed within the time specified under Sub Article (2) of this Article, shall have it renewed with in the next six months i.e. from ‘Tir’ 1 to ‘Sene’ 30, by paying in addition to the renewal fee, a penalty of Birr 2,500 (two thousand five hundred) for the month ‘Tir and Birr 1,500 (one thousand five hundred), for the next each month of delay.

 

8/         Sub-Article (4) and (6) of Article 28 are being canceled and replaced by the following new Sub Article (4) and (6).

 

4.      A business person whose business license is canceled for any reason other than that under Sub Article (1) (e) of this Article obtains the same business license as new, after one Year.

 

6.   A business person who returns his Business license to the appropriate Authority pursuant to Sub-Article (5) of this Article or who wants to obtain the same business license as new, after being canceled pursuant to Sub-Article (4) of this Article or a business person who demands the issuance of a substitute Business license Pursuant to Article 29 of this proclamation, shall submit a tax clearance for the duration he used the returned or the canceled or the substituted business license.

9/         Sub-Article (3) of Article 29 is being canceled and replaced by the following new Sub Articel (3).

3.         The appropriate Authority, to which application for a substitute business License is submitted under Sub-Article (1) of this Article, shall issue to the applicant a substitute upon payment of the fee prescribed by the Regulations and signing a liability undertaking for the lost business License.

10/       The following new Sub-Article (3) is added to Article 35 of the proclamation.

 

3.         The appropriate sectorial Government organ shall in form the appropriate authority, as to the Administrative measure to be taken, when the Business person acts other wise than the criteria on which the Business License was issued or when he commits a fault.

3.         Effective Date

          This Proclamation shall enter in to force as of the 13th day of November, 2003.

 

Done at Addis Ababa, 13th day of November, 2003

GIRMA WOLDEGIORGIS

PRESIDENT OF THE FEDERAL

DEMOCRATIC REPUBLIC OF ETHIOPIA

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