Ethiopia has made beneficial ownership disclosure a condition for issuing or renewing commercial registrations, business licences and investment permits under Regulation No. 592/2026.
The rules require covered legal persons to identify the individuals who ultimately own or control them and record their information with the Ministry of Trade and Regional Integration.
Existing entities were required to collect and hold this information by 13 October 2026, with submission due by 11 January 2027. The Ministry may extend either period by up to two months, but extensions are not automatic.
Ownership thresholds vary by entity type. Share companies generally apply a 10% threshold, while specified high risk sectors and private limited companies apply 5%. Financial institutions apply 2%. Separate tests capture control through appointment rights, financing arrangements, veto powers and strategic or executive responsibilities.
Businesses must appoint an Information Registration Officer, review and verify ownership information at least twice annually and report changes within 14 days. Records must include identity details, the nature of ownership or control and politically exposed person status.
Noncompliance can trigger administrative fines ranging from ETB 100,000 to ETB 500,000, business licence suspension, registration cancellation and exclusion from public procurement. Separately, failure to maintain adequate, accurate and current beneficial ownership information is a criminal offence carrying three to five years in prison and financial penalties.
Foreign legal persons investing, operating or owning immovable property in Ethiopia must disclose their beneficial owners and meet applicable document authentication requirements.
For KYB teams, the regulation makes ownership verification central to assessing business continuity and regulatory exposure. Due diligence should trace ownership through corporate layers, assess control beyond shareholdings and monitor changes that could affect a company’s registration, licensing status or procurement eligibility.
Similar Cases Globally: UK and South Africa’s Beneficial Ownership Reforms
Comparable reforms have already taken effect elsewhere. The United Kingdom introduced its People with Significant Control register in 2016, requiring companies to identify individuals exercising ownership or control. South Africa linked beneficial ownership declarations to annual return filings from July 2024, preventing submissions where ownership information was missing or outdated.
