← Back to briefingZenaHub.
Englishአማርኛ
Business

New Regulation Mandates Registration of Corporate Beneficial Owners Within Six Months

The Reporter (Amharic) · 4 hours ago · Read the Full Story on The Reporter (Amharic)
New Regulation Mandates Registration of Corporate Beneficial Owners Within Six Months
AI SUMMARY

A new regulation in Ethiopia requires companies to register the details of their beneficial owners with a 5% or greater stake within six months to combat financial crimes.

  • Council of Ministers Regulation No. 592/2018 mandates that companies register their beneficial owners with the Ministry of Trade and Regional Integration.
  • The regulation applies to entities with investors holding a 5% or greater stake, actual owners, indirect owners, and asset-sharing rights holders.
  • The directive was enacted under Proclamation No. 780/2013 and amended Proclamation No. 1387/2025 to prevent money laundering and terrorist financing.
  • For share companies, the threshold is generally 10% for shares or convertible debt, but drops to 5% in sectors like mining, real estate, automotive trading, and import-export.
  • Private limited companies require registration for any individual holding a 5% or greater stake or voting rights.
  • Companies must maintain updated beneficial ownership information and appoint a dedicated data registration officer under high-level management supervision.
  • Existing entities have three months to gather the required information and six months to submit it to the Ministry, with a possible two-month extension.
  • Failure to disclose beneficial ownership will result in the denial or suspension of trade registrations, business licenses, and government procurement eligibility.
  • Penalties for non-compliance include administrative fines ranging from 100,000 to 500,000 Birr, alongside potential license revocation.
Read the Full Story on The Reporter (Amharic)
Related
Ethiopia’s commerce goes contactless with new Visa and ETTA infrastructure agreement
Capital Ethiopia · 3 hours ago
Zemen Bank Reports 15% Rise in After-Tax Profit to ETB 6.75 Billion
StockMarket.et · yesterday
Lawsuit Accuses Starbucks of Mislabeling 'Sugar-Free' Protein Drinks
AP News · 2 days ago
Alibaba market remains out of reach for Ethiopian exporters
Capital Ethiopia · 3 days ago