OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA 10 Year No. 9 ADDIS ABABA - 134 November , 2003 CONTENTS Proclamation No. 376/2003 A proclamation to amend the commercial registration and business licensing proclamation Page 2439 PROCLAMATION No. 376/2003 A PROCLAMATION TO AMEND THE COM CIAL REGISTRATION AND BUSINESS LICENSING PROCLAMATION provisions to encourage investement . NOW , THEREFORE , in accordance with Article 55 ( 1 ) of the Constitution of the Federal Democratic Republic of Ethiopia it is hereby proclaimed as follows : Short Title This Proclamation may be cited as the “ Commercial Registration and Business Licensing ( Amendment ) Proclamation No. 376/2003 . ” Amendment The Commericial Registration and Business Licinsing Proclamation No. 67/1997 ( as amended ) is_hereby amended as follows . 1 ) The following new Sub - Articles ( 8 ) ( 9 ) , ( 10 ) and ( 11 ) are added to Article 5 of the Proclamation . 8 ) Founders or members of a Business Or ganization shall sign their memorandum or Article of association at the office of the registration of Acts and documents , according to standardized samples of memorandum and Articles of Associations sent to same office by the appropriate Authority , before applying for commericial registration , except any amend ments to these signed and registered memoran dum and Articles of Association . Unit Price The African Law Archive 13th November , 2003 — Page Association , Founders or members of a Business or ganization shall get the verification of the appropriate Authority that the name of the Business Organization has not been occupied by another business person . 10 ) Where , the successors of a sole Business person , who engaged in transport business , do not want to form a business organization , one of the successors can be egistered in the commericial register according to the power of attorney given to him by the other successors . 11 ) The agreement of founders or members of a Business organization on the valuation of contribution in kind shall be stipulated in the memorandum of association . Article 8 of the proclamation is being canceled and replaced by the following new Article 8 . 8 ) Legal Personality of Business Organization 1. Business Organization shall acquire legal per sonality by registering in the commericial register with out being publicized in a news paper as provided for under Article 87. 219 , 220 , 223 , and 224 of the commericial code for their establishment and amendments to their memorandum of Associations . The commercial Register of Business or ganization shall be made open for the reference of third parties . 3. Article 9 of the proclamation is being canceled and replaced by the following New Article 9 . 9. Effective date of Registration Any commericial Registration shall be effec tive from the date of the Registration of the applicant in the commericial register . 4 ) Sub - Article ( 5 ) of Article 20 proclamation is being canceled . 5 ) Sub - Articles ( 2 ) and ( 3 ) of Article 22 of the proclamation are being canceled and replaced by the following new Sub - Articles ( 2 ) and ( 3 ) . 2 ) The applicant shall submit a signed verification that requirements determined by directive issued by the appropriate Government institution , for the license ap plied for , are fulfilled . The appropriate authority shall inform the concerned gover nment institution about the implementation of the directive . Without prejudice to the provision of Sub Article ( 2 ) above , the Council of Ministers may be Regulations determine Business for which certificate of competence or owner ship is needed and the Government offices which have to issue the same . 6 ) The following new Sub - Article ( 3 ) is added to Article 23 of the proclamation . 3 ) Where , the successors of a sole Business person , who was engaged in transport Business , do not want to form a business organization , a business license can be given in the name of one of the successors in accordance with the power of attorney given to him by the other successors , after being registered in the commericial register pur suant to Article 5 Sub - Article ( 11 ) of this prolcamation . 7 ) Sub - Article ( 3 ) of Article 25 is being canceled and replaced by the following new Sub - Article The African Law Archive 13 November , 2003- ~ Page 2441 3 ) The holder of a business license who has failed to have it renewed within the time specified under Sub - Article ( 2 ) of this Article , shall have it renewed with in the next six months i.e. from " Tir ' I to ' Sene ' 30 by paying in addition to the renewal fee , a penalty of Birr 2,500 ( two thousand five hundred ) for the month “ Tir and Birr 1,500 ( one thousand five hundred ) , for the next each month of delay . 8 ) Sub - Articles ( 4 ) and ( 6 ) of Article 28 are being canceled and replaced by the following new Sub - Articles ( 4 ) and ( 6 ) . 4 ) A business person whose business license is canceled for any reason other than that under Sub - Article ( 1 ) ( e ) of this Article obtains the same business license as new , after one year . 6 ) A business person who retruns his Business license to the appropriate Authority pur suant to Sub - Article ( 5 ) of this Article or who wants to obtain the same business license as new , after being canceled pur suant to Sub - Article ( 4 ) of this Article or a business person who demands the issuance of a substitute Business license Pursuant to Article 29 of this proclamation , shall submit a tax clearance for the duration he used the returned or the canceled or the substituted business license . 9 ) Sub - Article ( 3 ) of Article 29 is being canceled and replaced by the following new Sub - Ar 3 ) The appropriate Authority , to which ap plication for a substitute business License is submitted under Sub - Article ( 1 ) of this Article , shall issue to the applicant a subs titute upon payment of the fee prescribed by the Regulations and signing a liability un dertaking for the lost business License . 10 ) The following new Sub - Article ( 3 ) is added to Article 35 of the proclamation . 3. The appropriate sectorial Government organ shall in form the appropriate authority , as the Administrative measure to be taken , when the Business person acts other wise than the criteria on which the Business License was issued or when he commits a fault . Effective Date This Proclamation shall enter in to force as of the 13th day of November , 2003 . Done at Addis Ababa , 13th day of November , 2003 PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA * * The African Law Archive * WWW.AfricanLawAr