Ethiopia’s new commercial code, which is currently at draft stage at the House of People’s Representative (HPR), allows establishment of One Person PLC, a provision not included in the existing code, which was ratified in 1960.
The draft code allows establishing companies under general partnership, limited partnership, limited liability partnership, joint venture, share company, private limited company and One Person private limited company. A minimum of ETB15,000 is required to establish the One Person Plc, similar to Plc. The person is not liable for debts of the company, states the document.
The existing code lists ordinary partnership, joint venture, general partnership, limited partnership, share company, private limited company.
The 273-page draft document have number of changes including on holding companies and stock brokering.