Ethiopia, officially the Federal Democratic Republic of Ethiopia, is a landlocked country located in the Horn of Africa region of East Africa. It shares borders with Eritrea to the north, Djibouti to the northeast, Somalia to the east, Kenya to the south, South Sudan to the west, and Sudan to the northwest. Ethiopia covers a land area of 1,104,300 square kilometres (426,400 sq mi). As of 2025, it has around 135 million inhabitants, making it the 14th-most populous country. The national capital and largest city, Addis Ababa, lies several kilometres west of the East African Rift that splits the country into the African and Somali tectonic plates.
Between 2004 and 2020, Ethiopia’s economic growth was almost 10% per year one of the world’s highest. This was due to a sharp increase in foreign exchange inflows, initially from development assistance, then from external borrowing. With a population of over 120 million and a main regional player in the Horn of Africa, Ethiopia’s development path matters for a huge number of people across the wider region. Ethiopia registered the fastest economic growth under Meles Zenawi’s administration. According to the IMF, Ethiopia was one of the fastest growing economies in the world, registering over 10% economic growth from 2004 through 2009. It was the fastest-growing non-oil-dependent African economy in the years 2007 and 2008. In 2015, the World Bank highlighted that Ethiopia had witnessed rapid economic growth with real domestic product (GDP) growth averaging 10.9% between 2004 and 2014. Exports from Ethiopia in the 2009–2010 financial year totalled US$1.4 billion. Having the fastest economic growth in sub-Saharan African countries because of foreign direct investment in expansion of agricultural and manufacturing industries; agriculture is the country’s largest economic sector, accounting for over 37% of the gross domestic product as of 2022. Though the Ethiopian economy has experienced consistent growth, in terms of per capita income and the Human Development Index.
Massive and Growing Market Access
Low Operational Costs
Comprehensive Investment Incentives
Significant Economic Reforms (2024–2026)
Rich Natural Resource Base
Employment Income (Schedule A):
Taxed progressively on monthly earnings. The 2025 reform raised the tax-free threshold significantly to ease the burden on low-income earners.
Business Income (Schedule C):
Value Added Tax (VAT):
A standard rate of 15% applies to most goods and services. Businesses with an annual turnover of 2 million ETB or more must register for VAT.
Sole Proprietorship:
Owned and run by one individual, with the owner personally liable for all debts.
Partnerships:
Limited Liability Partnership (LLP):
Typically for professionals, limiting each partner’s liability.
Joint Venture (JV):
A secret collaboration between two or more parties for a specific project, without public registration.
Private Limited Company (PLC):
Requires 2-50 members, with limited liability for shareholders; often used by foreign investors.
One-Person Private Limited Company:
A PLC with a single member.
Share Company (SC):
Capital divided into shares, minimum shareholders (often 5 for public, 2 for private), with limited liability, suitable for larger investments.
Branch Office:
An extension of a foreign company.
Chandrawat & Partners is a prominent full-service firm dedicated to delivering top-tier professional services to clients both within the domestic and international spheres.
Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.
Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.
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