The amended Commercial Registration and Business Licensing Proclamation allows the use of modern software other than the conventional software of cash register machines to further utilize latest technologies to maintain accuracy and in order to facilitate ease of doing businesses in the country. The amended proclamation also removed mandatory requirement to have a proof of lease or rental agreement for physical business address to acquire a registration and business licensing.
The amended proclamation also removed publication of company names through newspapers and a 15 days waiting period for approval as it is found to be a hindering factor for business registration.
In the new amendment any one can register and get a license without having the rental agreement and announcing through newspapers and even without physical presence to get the issuance.
The amended proclamation mandated the Ministry of Trade and Industry to authenticate and supervise the activities of those business entities by any means after registration. Regarding the announcement the ministry mandated to announce through online and other mechanisms to shortening the procedures to enable businesses to begin their operation.
The amendment also allows for the ministry to provide services by using modern technology for registration and announcement. It also permits to use other computerized software for VAT service which was only mandatory to use VAT machines only.
“The amendment is part of the ongoing reform in the country to ease doing business” said Getachew Mesele, Chairman of trade and industry standing committee.
Prime Minister Abiy Ahmed stressed that cutting bureaucratic bottlenecks in these processes will enable focus investment areas of electricity, mining, housing, manufacturing and Small and Medium Enterprises (SME’s) to be effective in one of his tweet by his office some months back.
Ease of doing business reforms in Ethiopia are looking to ease by simplifying the requirements in the areas of trading, paying taxes, dealing with construction permits, registering properties, enforcing contracts, getting electricity and the likes. The World Bank stipulated in its annual rankings of countries for doing business and Ethiopia is ranked 159 among 190 economies in the ease of doing business.
According to the World Bank research, the process takes 32 days to get business license in Ethiopia. However the State Minister of Trade and Industry Eshete Asfaw said that the ministry significantly minimizes the days by providing online services of all types in collaboration with Ministry of revenue.