The Ethiopian Ministry of Trade is drafting amendment bill to lift the deadline set for business registration renewal. The amendment is needed to rectify problems relating to business license renewal.

“We are thinking of letting businesses renew their registration certificates until the end of the budget year,” Ali Siraj, state minister for Trade told Fortune.

The draft bill is also expected to have other amendment provisions to the Commercial Registration and Business License Proclamation and other business activities, including one in relation to expediting the process of winding up businesses.

The current business registration law requires businesses to renew their registration every year in the first four months of the Ethiopian Fiscal Year. Failure to do so would lead to the expiry of the registration certificate.

However, businesses can renew their licenses all year long, albeit with penalties and the suspension of the license, after the first four months.

Business license renewal, on the other hand, requires tax clearance and competency certification from the appropriate Authority. Moreover, business licenses cannot be renewed without a valid business registration certificate.This would mean businesses that have failed to make the registration renewal within the required period cannot renew their licenses.

The bill is still under discussion within the ministry. After it is finalized, it will be sent to the Council of Ministers for suggestion.

Source: Fortune