Comparison of Establishing Local Versus An Ethiopian Branch of A Foreign Real Estate Business in Ethiopia

Abstract

The real estate business has been one in all the fastest growing sectors within the economy of Ethiopian. Currently, the key actors within the sector are the local investors and few foreigners have also engaged to some extent. The essential question is: what's the legal ground for establishing local likewise as foreign private real-estate businesses in Ethiopia? Thus, the objectives of this study were to explore the legal-framework establishing local and Ethiopian branch of a foreign real-estate businesses within the country. So as to deal with the question under study, both primary and secondary data were used. The firsthand data were collected using self-administered questionnaire whereas, secondary data were collected by review of related literature and documents like proclamations, regulation, directives and plan and procedures were used. The finding shows that, establishing Ethiopian branch of a foreign real-estate business has a spillover-effect for the advancement of the sector and there by the economy of the country. However, the country doesn't have a specific real-estate law and at a similar time the sector has been vulnerable for different types of abuses. Property development business thanks to it for not being excluded from Art 21(4) of the Proclamation No. 980/2016, it is governed by the business Registration and Licensing Proclamation.