Anyone who is into business and law etc. I have a fruitful business with a US LLC and foreign customers. I have seen demand in my business with Ethiopian clients as well but I don't do business with them yet unless they pay in USD. My question to you is how can I setup a subsidiary here locally to do business with Ethiopians in ETB and the owner is the parent LLC is that possible? if not what is the best solution to this?
Feb 19, 2025Yes, it's possible, but there are some regulations to consider. (And don't forget the inflation). A foreign-owned company in Ethiopia can register as a subsidiary (private limited company - PLC), but foreign investment laws require a minimum capital investment 200k, or 100k if in partnership with an Ethiopian). Since Ethiopia has strict forex controls, your local subsidiary would operate in ETB, and repatriating profits to your US LLC would require approval from the National Bank of Ethiopia. Which is a long process but manageable if you have a connection tho. The best way is to partner with a local Ethiopian business or use an agent model to receive payments in ETB while keeping your primary business in USD.
Feb 19, 2025Instead of creating a separate Ethiopian company, the foreign company can register a branch in Ethiopia (if the business activity and licensing allow it). Good for operational simplicity, but the parent company remains directly exposed to liabilities.
May 06, 2026