Ghana, which means ‘warrior king’ is located in the sub-region of West Africa. It has a population of 28.7 million people. The economy of Ghana mainly relies of agriculture, petroleum, natural gas, and mining of precious minerals. Ghana is the 2nd largest producer of cocoa in the world. As for its previous minerals, it has large deposits of gold and diamonds. Let discuss how to register a company in Ghana as foreigner?
Before you decide to register a company, you must know the various types of companies that are available.
Types of companies
- Sole proprietorship – This type of company is owned and managed by a single person. This is normally suitable if you would like to start a small enterprise first and move on to bigger things later.
- Partnership – This type of company is where 2 or more individuals join and start a business. This is highly suitable for law firms, architect firms etc.
- Company limited by shares – The shares of the company are not offered to the public. The management of the company is done by a Board of Directors. This is the most common type of business structure this is how to register a company in Ghana.
- Company limited by guarantee – There is no share capital and no directors for this type of company. It is mainly formed for a non-profit organization.
- External company – An external company is a company formed outside of Ghana and seeks to register a place of business in Ghana. This is more commonly known as an offshore company.
How to register a limited liability company in Ghana
The Ease of Doing Business report by the World Bank has rated Ghana at 108 out of 190 countries in 2017. Below are the procedures how to register a limited liability company in Ghana –
- Get a Tax Identification number (TIN) – As of 2013, the applicant company must obtain a TIN before registering a company. They need to complete a Ghanaian Revenue Authority Taxpayer Registration. Once the TIN has obtained the authority will text to the applicant to collect the TIN. There is no charge for this procedure which will take about 2 days.
- The applicant must check the availability of the name and submit the application form to obtain the certificate of incorporation. The name search can be done at the customer service office of the Register General and submit the company documents for the registration. The proposed name of the company may be reserved pending the company registration. The fees involved for this process is Ghanaian Cedi (GHC)25 for the name search, GHC50 for the name reservation, GHC15 for the complete set of forms, GHC230 for the registration fees and GHC5 for the certificate of regulations of which you must have 3. The forms that you submit must have the following information –
– Nature of business of the company
– Full names and details of the shareholders, directors, the percentage of shareholding and occupation
– Full name of the company secretary and auditors
– Attestation that the minimum nominal capital has been met which is GHC500.
- The forms for a certificate to start business must be authenticated by a Commissioner of Oaths. This can be done in 1 day and cost GHC10.
- Obtain the certificate to start business from the Registrar General Department. After the company has been incorporated, certain forms must be completed to sow the following details –
– Names, addresses, business and occupation of the company secretary and director
– Names and addresses of company auditors
– Address of the registered office and registered members
– Amount of the stated capital and number of issued and unissued company shares.
These forms must also be signed by all the directors and secretary of the company. % of the stated capital must be paid to the Registrar on behalf of the Inland Revenue Services as commencement tax including GHC100 for the forms.
The ROC now automatically registers any new company for Value Added Tax.
- Deposit paid up capital with a bank. The paid up capital of the company must be paid and submitted together with the following documents –
– copies of company regulations
– certificate of incorporation
– certificate to start business
– authorized signatures of the company’s representative.
– The bank will prefer to have customers introduced to them. As such the applicant company can get introduction letter from their lawyers.
This whole process takes 1 day for Ghana foreign company registration purpose.
- The applicant company must then apply for business licence. This process takes about 7 days and is applied at the Metropolitan Authority. The cost for this licence depends on the nature of business and category. The licence must be submitted with the relevant documents. For example a restaurant would need a fire permit from the Fire Department etc.
- Work premise inspection will be done by the Metropolitan Authority. An officer from this department will visit and report to the Revenue Authority of the Metropolitan Assembly who will then submit a report to the Revenue Mobilization Sub-committee which will then recommend to an Executive Committee. This will take 1 day.
- The company will then need to apply for social security. This will take 1 day at the Social Security office. This must be submitted with a list of employees, their respective salaries and social security numbers, certificate of incorporation and certificate to start business. I hope your are clear about how to register a company in Ghana as foreign share holder (s)?