Guide to Dissolving a Foreign NGO in Ethiopia: Key Steps and Required Documentation

Dissolving a foreign NGO in Ethiopia requires specific steps to comply with the Organizations of Civil Societies Proclamation No. 1113/2019. The process, overseen by the Agency for Civil Society Organizations (ACSO), involves submitting detailed documents and financial records. Here’s an optimized breakdown of the dissolution process, focusing on ACSO requirements and final steps with tax authorities.

Step 1: Prepare Key Documents for ACSO

To start the dissolution process, submit the following notarized documents to ACSO:

• Resolution for Dissolution: This resolution, prepared by the NGO’s governing body, should clearly outline:
  • The reason for dissolution,
  • Status of ongoing projects, with transfer plans if applicable,
  • Details on property handover to ACSO,
  • Confirmation that employee matters are settled.
• Power of Attorney (POA): Authorizing a designated representative to manage the dissolution process on behalf of the NGO simplifies communication with Ethiopian authorities.

Step 2: Submit Financial and Compliance Documents to ACSO

ACSO requires several financial and organizational documents to complete the dissolution:

• Dissolution Application: A formal request for dissolution, signed by the NGO’s Country Representative or authorized representative.
• Bank Statement: An up-to-date bank statement will be reviewed, and ACSO will freeze the account during the process. After completion, ACSO will authorize permanent closure of the account.
• TIN Copy: While the final closure of the Tax Identification Number (TIN) is handled by tax authorities, ACSO requires a copy as part of the dissolution documentation.
• Final Activity and Audit Reports: A comprehensive activity report and an up-to-date audit report conducted by an external auditor are mandatory.
• Employee Pension Contributions: Documentation confirming that employee pension contributions have been paid up to the dissolution date.
• List of Assets: A complete list of all fixed assets for proper tracking and transfer to ACSO or other designated organizations.

Step 3: Terminal Evaluation and Asset Handover

For NGOs with ongoing projects, a Terminal Evaluation from the relevant ministry (e.g., Ministry of Education) must be submitted to ACSO, evaluating the final impact of projects. ACSO will then appoint a liquidator to oversee the transfer of assets, property, and certificates to approved entities.

Step 4: Final TIN Closure with Tax Authorities

After completing the dissolution requirements with ACSO, the NGO must finalize its TIN closure with Ethiopian tax authorities. This step officially concludes the organization’s tax obligations in Ethiopia.

Streamline Your NGO Dissolution Process

Dissolving an NGO involves extensive documentation and coordination. Working with a legal advisor experienced in Ethiopian NGO regulations can help you ensure compliance, manage documentation, and complete the process efficiently.

Contact Us for Expert Guidance on NGO Dissolution in Ethiopia. Our team specializes in assisting NGOs with the Ethiopian dissolution process. Reach out for tailored support and a smooth, compliant dissolution.

Disclaimer: This blog provides general information and does not constitute legal advice. For detailed assistance with NGO dissolution in Ethiopia, please contact our experts.