Services
Access official information on enterprise forms, capital requirements, SIIB services, investment permits, and licensing guidance for investors in Somali Region.
Investor Service Information
This page presents the existing service information of the Somali Region Investment and Industry Bureau in a clearer and more structured format, without changing the underlying content.
Forms of Enterprise for Carrying Out Investments
Investments may be carried out in one of the following enterprises:
- Sole proprietorship
- Enterprise established in Ethiopia or abroad
- Public enterprise established in accordance with the relevant law
- Cooperative society formed in accordance with the relevant law
Minimum Capital Requirement for Investment
Foreign Investors
- Minimum capital for a single foreign investment project: USD 200,000.00
- Minimum capital for a foreign investor jointly investing with a domestic investor: USD 150,000.00
- For architectural or engineering works, related technical consultancy services, technical testing and analysis, or publishing works:
- USD 100,000.00 if the investment is made individually
- USD 50,000.00 if the investment is made jointly with a domestic investor
Domestic Investor
- The minimum capital required to be considered as an investor and be issued an investment license in Somali Region is 1,500,000 Ethiopian Birr
- Projects below 1,500,000 Ethiopian Birr are considered small and micro enterprises
Service Provided by SIIB
- Provision of pertinent investment information and data
- Licensing services
- Renewal, suspension, and revocation of investment permit
- Investment incentives
- Investment promotion
- Facilitation and aftercare services
- Redress of clients’ grievances or concerns
- Coordinate diaspora efforts and activities in the region
Provision of Pertinent Investment Information
Somali Region Investment and Industry Bureau is in charge of providing pertinent information to potential investors regarding the region:
- Investment potential and opportunities
- Requirement for issuing license
- Renewal of investment incentives
- Land for investment
- Priority investment area
- Related investment information
Requirement and Issuance of Investment Permit
The following investors shall be required to obtain investment permits:
- Foreign investors
- Domestic and foreign investors investing jointly
- Investors investing as domestic investors pursuant to applicable provisions
- Domestic investors who, investing in areas eligible for incentives, seek to be beneficiaries of such incentives
- An investor seeking to expand or upgrade an existing investment, provided that the investment is eligible for incentives and the investor seeks to be beneficiary of such incentives
Investment to Be Made by Domestic Investor and Ethiopian in Diaspora
The Somali Region Investment and Industry Bureau is responsible to issue investment license only for domestic investors and Ethiopians in diaspora. The investment can be in sole proprietorship, PLC, JV, and share company business form. However, all shareholders must be Ethiopian or Ethiopian origin. The requirement to issue investment license varies depending on the type of business form in which the investor plans to operate.
The investment permit application process is simple and it requires only a few steps and requirements to issue investment license for domestic investor and Ethiopian in diaspora (Ethiopian Origin).
Investment Made by Sole Proprietorship
- Collect information from Somali Region Investment and Industry Bureau (SIIB) about requirements, investment opportunities, potentials, incentives, and related matters
- Collect application form from SIIB
- Submit filled and signed application form (by the investor, general manager, or authorized person)
- Submit project proposal (business plan)
- Submit copy of valid ID card (passport or Yellow Card)
- Submit bank letter showing financial capacity
- Submit two recent passport size photographs of the investor
- Collect investment permit certificate
Investment Made by PLC, JV and Share Company
- Collect information from SIIB about requirements, investment opportunities, potentials, incentives, and related matters
- Collect application form from SIIB
- Submit filled and signed application form (by the investor, general manager, or authorized person)
- Submit project proposal (business plan)
- Submit copy of authenticated Article of Association and Memorandum of Association
- Submit copy of valid ID card (passport or Yellow Card) of members
- Submit bank letter showing financial capacity
- Submit two recent passport size photographs of the manager
- Collect investment permit certificate
Investment to Be Made by Foreign National and Jointly with Ethiopian
As per the Ethiopian investment law, the following investments fall under the jurisdiction of the Ethiopian Investment Commission:
- Wholly foreign-owned investment
- Joint investment made by domestic and foreign investors
- Investment made by a foreign national, not Ethiopian by origin, who is treated as a domestic investor
- Investment made in areas eligible for incentives by a domestic investor who is required to obtain a business license from an appropriate Federal Body
Thus, if the investment is to be made by the above listed investor, the investment license is issued by the Ethiopian Investment Commission.
Take the Next Step
Explore investor support options, request guidance, or contact SIIB for practical assistance related to investment services in Somali Region.