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Joint Venture Agreement In Ethiopia

19 EC in accordance with the new Investment Law Proclamation 769/2012 Investment areas that can be carried out jointly with the government – 1. Weapons manufacturing 2. ammunition and three. explosives that can be used to make weapons. Telecommunications services. Capital required Minimum capital required for a foreign investor who co-invests with foreign investors with domestic investors is $150,000 The minimum capital required by a foreign investor invested in architectural or technical work or technical consulting, technical testing and analysis or publishing services is $50,000 if the investment is made jointly with domestic investors. 12 The disadvantages of joint venture liability are unlimited. Responsibility is unlimited. There is a joint and several liability.

There is no continuity. Non-transferable interest. 6 JV contrasts with PartnershipLack of Legal Personality Secrecy nature Limited purpose/duration Joint management by partners-joint management of the joint venture Personal nature of the relationship- not transferable. Parties to the trust relationship are required to respect the strictest loyalty. Informality – it could be done in writing, orally or in some other way. Non-continuity with death, disability, bankruptcy. Based on Stage 1, determine an investment sector and a market for joint ventures. Look at the industry to see if it is allowed for you based on your investor status. It is recommended to look into this issue and make sure that the area is allowed not only for you, but also for a potential partner. After meeting a number of people through networking, you plan follow-up meetings with people whose businesses meet your joint venture needs in Ethiopia.

Be prepared to discuss your business needs and what you have to offer. 15 JV Under Ethiopian law, if the joint venture is a contractual agreement under the Ethiopian Code of Commerce, it should be noted that the code does not exclude the creation of a joint venture by choosing the following legal forms – corporation, limited company or limited company. However, the natural legal effects are as follows: If two or more joint venture partners form a registered ordinary or general partnership, then the liability of the partners is jointly liable if the partners of the joint venture form a single limited partnership, some of the partners (i.e. the joint venture) assume full responsibility, personal and solidarity, while the sponsors are responsible only to the extent of their contributions. If the joint venture partners form either a limited company or a limited company, their liability is limited to the extent of their contributions. 17 … JV Under the regime of DergueParties to the Ethiopian state, state capital or financial agency, (a) and state-owned enterprises, state-owned enterprises, financial agencies or private capital, on the other hand.B) between, on the one hand, the capital of the Ethiopian state, the state enterprise or the financial agency and the Ethiopian cooperative or private capital, on the one hand, and the foreign state, the state, the financial agency or private capital, collectively or on several occasions.