Company Registration in Ghana

Ghana is a promising destination for catering to diverse business endeavors. It is among the top nations with several tax and trade agreements to promote hassle-free global trade. If you are inspired to leverage this nation to fuel your business ambition, be ready to cater to several legal implications. Let’s take a detailed walkthrough of what is required to start a new biz in this nation.

Analyzing Ghana’s Potential from a Business Standpoint

Stable Democracy and Regulatory Bodies:

Ghana fosters a robust democracy and governing institutions, making it an ideal avenue for budding entrepreneurs globally.

Foreign Direct Investments (FDI):

Ghana has remained a potential hotspot for overseas investors for years. Sectors like extractive and mining have been on a remarkable growth trajectory when it comes to attracting FDI.

Abundance of Crude and Rare Minerals:

Ghana fosters endless natural resources including crude oil and various rare minerals, making it a prime choice for extractive industries across the globe.

Economic Growth and GDP Expansion:

Ghana's economy has been thriving at a consistent pace, averaging 5 percent per year. It reflects the government’s intention to take international trade and growth to the next level.

Gateway to the Sub-regional Market:

Situated in West Africa, Ghana allows businesses to access the sub-regional market, helping them access an extended customer base.

Key Industries Driving Growth:

Agriculture, manufacturing, and mining are among the top sectors, that contribute significantly to the nation’s growth.

Business Models in Ghana for Company Registration

Private Company limited by shares:

It is a flexible business model and is ideal for businesses with a moderate footprint. The shareholding threshold decides the level of ownership in such companies for shareholders.  Establishment requirements include at least two shareholders and registration with competent authority if involved with a certain industry.

Company unlimited by Shares:

Such businesses are chosen for specific purposes. It stretches the shareholder’s liability to the extent of unpaid shares.

External companies:

Such entities refer to the non-native companies operating in Ghana. Adherence to the local operational compliances and tax laws is vital for such companies.

Company limited by guarantee:

Such entities compel shareholders to pay an assured amount during winding up. It is widely popular among non-profit entities.

Partnership:

This business structure is ideal for small or moderately sized entities as it reinforces transparency and controlled liabilities. The partnership can further be classified into a general and limited partnership. The general partnership provides for equal control and liabilities, whereas the latter renders liabilities as agreed by the

Sole Proprietor Business:

Ideal for small businesses owned by a single owner seeking complete control, be it ownership or managerial affairs. However, choosing this business model can lead to a confrontation with unlimited liabilities.

Documents

• Application Form
• Company Regulations
• Declaration of Compliance
• Company Regulations Form
• Form of Identity
• Auditor's Report
• Power of Attorney
• Evidence of Payment of Stamp Duty
• Certificate to Commence Business
• Register of Members
• Register of Directors
• Registered Office Notice
• Notice of Situation of Registered Office
• Company Secretary's Consent
• Statutory Declaration by Director or Secretary
• Particulars of Shareholders or Members
• Notice of Appointment of Auditor
• Form of Company Secretary's Consent
• Notice of Change in Director
• Annual Returns Form
• Minutes of Statutory Meeting or Annual General Meeting
• Form of Proxy
• Form of Minutes of Board Meeting
• Declaration of Compliance with Regulations
• Form of Application for Registration of External Company
• Power of Attorney for External Company
• Particulars of Directors and Secretary for External Company
• Declaration of Compliance by External Company
• Notice of Situation of Registered Office for External Company

Process

Step 1 – Choose the type of business you want to register

Choosing a business type will be your first step in this process. You can choose from the options listed above based on factors like risk threshold, operational compliances, and taxes. Ensure that the selected structure aligns with your corporate requirements, business goals, and operational needs.

Step 2 – Registration of a Business Name

Business name registration is a delicate process involving critical steps like name search, reservation, and registar’s approval. While looking for a viable name, be sure to choose options that are not offensive and trademarked. Once you finalize a name, file a name reservation application with the Registrar.

Upon application submission, the verification process shall come into effect, which may last for 15 days at max. Only after securing the registar’s approval, you can proceed with the subsequent steps.

Step 3. Obtain a Tax Identification Number (TIN).

Head to the following URL to download the TIN forms  http://rgd.gov.gh/wp-content/uploads/2015/12/Taxpayer-registration-form-individual.pdf.

Among the eligible candidates for TIN form filing include authorized signatories, partners in partnership firms, business owners in a Sole Proprietor business, directors in the listed companies, etc.

Submit the TIN form along with the applicant’s ID and photos. It would hardly take a day or so for the authority to grant the TIN. The issuance authority in this case will be the Ghana Revenue Authority office.

Corporate entities owing shares can also apply for TIN numbers. The process of TIN submission is identical to the above with the only difference being the attachment, which in this case will be the letter of introduction.

Step 4: Submit the Business Registration Form

The registration form is available at the Registar portal. You need to download this form and include the mandatory details, such as applicant name, official information and ID, business name, business address, business place ownership proof, and tax registration number.

Once done, head to the payment portal for fee submission. Feel free to secure the acknowledgment slip for tracking application progress. It’s worth noting that the cost of registering a company in Ghana varies based on the chosen business structure. The successful payment will ensure the application’s submission on the portal.

Step 5. Collection of Registration documents

Depending on which industry your business caters to, you need to secure specific approvals or permits before becoming operational. Get in touch with Adviso to know more about it.

Step 6: Register for Social Security and National Insurance

Apply to almost all companies, securing Social Security and National Insurance approvals is a mandate for every employer in Ghana as they ensure safety and financial stability for employees. In Ghana, these contributions are referred to as SNNIT contributions.

The documents required to apply for these permits include a registration certificate, form 3, beneficial ownership profile, details of employees, Directors’ SSN, and contact information.

Step 7: Registration with the Ghana Revenue Authority for Tax

All businesses must have a valid tax registration issued by the Ghana Revenue Authority (GRA). Businesses that aren’t eligible for corporate tax must have GRA’s approval. To secure such a permit, the prescribed application must be submitted along with the following documents:

• Completed corporate tax registration forms
• CV of all directors of the company
• VAT registration forms (If Applicable)
• Pictorial depiction of the project/office location

The tax authorities can perform a provisional tax assessment of eligible entities yearly. The new entrants shall undergo assessment given the business’s object, stated capital, and the shareholder’s nationality.

All eligible companies operational in Ghana must pay provisional tax quarterly. Similarly, entities having taxable supplies worth GHS200,000 or more must secure VAT registration. You can visit the Domestic Tax Revenue Division Office to apply for VAT. Ensure to submit the following paperwork while applying for the same.

• Taxpayer’s Identification Number (TIN)
• Complete the VAT registration Form
• Copies of a full set of Business/ Company registration documents.

Step 8:  Open a bank account

Opening a corporate bank account is the final step in legalizing an entity in Ghana. While applying for the same, the bank may ask you for the given documents.

• A valid form of identification such as a passport.
• Taxpayer’s Identification Number.
• Proof of residence.
• Passport Pictures.
• Work and residence permit.
• a letter of reference from your employer.
• A letter of introduction from the local bank.
• Business registration
• ID and address proof of the authorized signatories
• Address proof of business place
• Annual returns
• Revenue stamp and constitution

Tax

Ghana has a transparent tax environment spanning different businesses working across diverse sectors. Having said that, the following taxes may be confronted by businesses in the part of the world.

• The general corporate income tax (CIT) rate has been capped at 25%.
• Entities in the Mining and petroleum sector have to pay a CIT @ 35%.
• Businesses belonging to the Hotel sector attract a CIT of 22 %.
• Those involved with the non-traditional exports must pay a CIT @ 8%.
• Banks lending credits to entities belonging to the agri and leasing sector attract 20% CIT on income arising from such companies.
• Lottery operators attract 20% income tax on the overall revenue.

Adviso Support: Amplify your Global Reach with Clarity

Being a top-tier service provider, Adviso promises to deliver exceptional services, be it helping clients go global or resolving cross-border business matters. Our experts ensure remarkable and consistent support at every step of your global quest.

Our experience in dealing with overseas compliances for business establishments is second to none. Teaming up with Adviso will give you access to a winning team being acknowledged as a trusted ally for a seamless incorporation journey.