Business entity types & details

Sole Proprietorship
These are businesses that one person manages and runs alone.  The owner incurs all the profits and losses alone.

Partnership
These are businesses that more than one person owns. Partnerships can either be limited or general. 
Companies Limited by Shares
These are distinct businesses that operate independently of the stockholders. Owners' liability is capped at the outstanding balance on their shares. 
A private limited company may have up to fifty shareholders, with two being the minimum number. It costs GH₵ 500 to GH₵ 1,500 to register a private limited company. 
 A public limited company can have over fifty shareholders and issue shares to the general public. Its shares can be easily transferred. It costs around GH₵ 2,000 to GH₵ 5,000 to register a public limited company. 

Foreign Company Branch Office
These foreign businesses operate in different countries but have branches in Ghana. 

Joint Venture
These are businesses where two or more organizations collaborate on a project. 

Limited Liability Partnership (LLP)
These are businesses that combine the principles of firms and partnerships. It costs around GH₵ 500 to GH₵ 1,500 to register LLPs. 

Requirements

Depending on the kind of business structure you want to register in Ghana, there are distinct conditions you must meet. The following are some of the requirements:

A unique business name

Filled application forms

Identification and Business documents

For Sole Proprietorships: Your passport, national ID, or driving license

For Partnerships: Your partnership agreement and partners’ identification documents

For Limited Liability Company:  Your Memorandum and Articles of Association, certificate of incorporation, and directors’ identification documents

For Public Limited Company: You will require documents identical to those of LLCs but with more public transparency standards.
Tax Identification Number
Licenses
Business bank account

Steps

You have to follow a list of processes if you want to register your business in Ghana. Let us explore the steps:

Select a business form

Choose a business form to register based on your business objectives and available resources. Some forms of business you can register in Ghana are sole proprietorships, partnerships, limited liability companies, and external companies.

Business naming and reservation

Select, verify, and reserve a business name at the Office of the Registrar of Companies. The name you select must adhere to Ghana's business naming laws and not be confusingly similar to already-existing business names. This process reduces copyright infringements and costs GH₵ 50 to GH₵ 100.

Completing application documents

Visit the office of the Registrar General’s Department either physically or through their official website and request all the relevant application forms. Provide correct information on the forms, including information about your company, its shareholders, and its operations.

Obtain taxation numbers

Every business operating in Ghana must register for taxation with the Ghana Revenue Authority. After approving your application, the Ghana Revenue Authority issues a business owner's Tax Identification Number (TIN).

Complete registration forms

Registration documents are different for every business form. Ensure you visit the Registrar General's Department to pick appropriate registration documents for your business. The identification documents of all shareholders and the business address location should be attached to the registration documents.

Complete the required fees

Pay the appropriate registration fees. The form of business you intend to register determines the fees to be paid.

Await authorization

Await approval and authorization after you send the completed registration forms, shareholders' credentials, and proof of physical address to the Office of the Registrar of Companies. Additionally, you should ensure you obtain receipts to prove you made payments.

Pick a Certificate of Incorporation

Upon approval, the registry department will issue your company a Certificate of Incorporation to verify your business's credibility and legitimacy. 

Application of licenses

The next step is to apply for permits for your business. Ensure you obtain specific licenses related to your business objectives. Seek the counsel of certified legal practitioners who understand the legal dynamics of the industry you intend to venture into. For example, you will need health permits if your business deals with food.

Open a bank account

Establish a business bank account for your business in Ghana. 

Requirements

To register a business in Ghana as a foreign investor:

1. Reserve a unique business name with the Registrar General’s Department (RGD).
2. Meet the minimum capital: $200,000 for joint ventures, $500,000 for foreign-owned, or $1,000,000 for trading.
3. Register with the GIPC and obtain a required certificate.
4. Submit Forms A and 3, valid passports, TINs, company by-laws, and proof of minimum capital.
5. Secure work and residence permits for foreign staff through GIPC.
6. Appoint a local company secretary and licensed auditor.
7. Register with SSNIT for employee contributions and with GRA for VAT, if needed.
8. Obtain a Business Operating Permit from the local district authority.

Steps

The procedure for foreigners to register a business in Ghana is comparable to that of Ghanaian nationals, with a few extra procedures and restrictions.

Select a business form

Take time to analyze the Ghanaian market and the existing niches. Select a business form you want to register from the available options. Limited Liability Companies (LLCs) are a popular choice among foreign investors.

Meet capital requirements

Foreigners must fulfill the minimum capital requirements according to Ghanaian laws, depending on their business type.

For limited liability companies: -private - GH₵ 1,000 
 -public - GH₵ 500,000 

Your company must demonstrate that it has sufficient resources for a foreign branch office to conduct its planned business operations in Ghana.

For partnerships- The members in a partnership must decide on the amount of capital they will each contribute.

Name your business

Give your business a unique name, submit it to the registry, then reserve it to avoid copyright conflicts.

Designate Native Representatives

To register a business in Ghana as a foreigner, you must select one local director or secretary. The regional representative will handle administrative duties and represent your business.

Apply for a foreign business certificate

If non-citizens entirely own your business, it must have a business certificate to operate in Ghana. You can apply for the certificate from the Ghana Investment Promotion Centre (GIPC).

Complete registration forms

You must download or obtain physical registration documents from the Department of the Registrar General (RGD). In addition to the registration documents, you must submit proof of the board members' physical addresses and credentials.

Comply with taxation rules

Register with the Ghana Revenue Authority (GRA) for taxation. The GRA will then issue your business a Tax Identification Number.

Complete registration fees and await approval

Ensure you make all the relevant payments to the registry. The RGD will then analyze your application documents and issue approval if they are satisfied. Upon approval, the RGD will provide your business with a Certificate of Incorporation or Business Registration Certificate. Your business is now legitimate, and you can commence operations.

Comply with industry regulations and permits.

A lawyer can help you determine whether permits and regulations exist in your industry. Then, to guarantee compliance, you must apply for and obtain the licenses. Your business must also be registered with the Social Security and National Insurance Trust (SSNIT) to cover the employees.

Open a business bank account

Open two bank accounts (foreign and local accounts) for your business. 

1. Companies registered in Ghana must submit annual returns to the Registrar General's Department (RGD).

2. Business owners must also produce and submit audited financial statements to the RGD as part of their yearly returns.
3. Companies must submit yearly tax returns to the Ghana Revenue Authority (GRA).
4. Businesses may be required by certain regulatory bodies to pay yearly levies or renewal fees to keep their licenses or permits.
5. Depending on the industry and specific regulatory needs, companies could be required to submit extra-statutory reports to the appropriate government agencies.
6. External companies are required to submit audited financial statements of their parent company.

Ghana's rapidly expanding economy presents significant opportunities for both domestic and international investors. The legal framework clearly outlines the prerequisites for business registration in Ghana.

Qualified professionals are always available to facilitate the registration of your company, the acquisition of real estate, and the recruitment of local personnel.

Frequently Asked Questions

Can you register your business online?

Yes. You can register via the registry’s official website. Make sure you have all the legal requirements and documents needed to register and run a business successfully.

Does registering a business in Ghana require a local partner?

Foreigners can typically register enterprises in Ghana without needing a local partner. Nevertheless, there can be exclusions or particular needs for particular industries.

How long before your registration is approved?

The speed of approval may vary based on the kind of business, the accuracy of the supporting documentation, and the Registrar General's Department's schedule. It may take a few days to many weeks to complete.