Starting a business in Ghana involves several steps and adherence to legal procedures. The guide below outlines the processes and requirements for incorporating a private limited liability company in Ghana, along with additional considerations and mandatory registrations.
- Choose the Type of Company:
- A private limited liability company is a popular choice.
- Other options include a company limited by guarantee, an unlimited company, or an external (foreign) company.
- Decide on Company Directors and Secretary:
- Minimum of two directors, both natural persons over 18 years, with at least one being ordinarily resident in Ghana.
- The company secretary can be a natural person or a body corporate.
- Appoint Auditors:
- The directors appoint the first auditors for the company.
- Choose a Business Name:
- Confirm the availability of the chosen business name.
- Register with the Ghana Revenue Authority (GRA):
- Obtain a Tax Identification Number (TIN) for members.
- Prepare the Company's Regulations:
- Regulations must cover essential details such as the company's name, objects, powers of directors, share capital, liability of members, etc.
- Submission to Registrar of Companies:
- Submit the application for incorporation to the Registrar of Companies.
- Pay Registration Fees:
- Pay the capital duty at a rate of 1% of the company's stated share capital and the registration fee.
- Register with the Ghana Investment Promotion Centre
(GIPC):
- Comply with minimum capital thresholds for companies with foreign equity participation.
- Exceptions to minimum capital requirements for certain business activities.
- Obtain GIPC Certificate:
- Benefits include customs import duty exemptions, various tax benefits, investment guarantees, and automatic expatriate quotas.
- Register with Other Mandatory Institutions:
- Ghana Revenue Authority: Register for tax purposes.
- Social Security and National Insurance Trust (SSNIT): Mandatory for employee contributions.
- Environmental Protection Agency (EPA): Obtain an Environmental Impact Assessment Certificate if required.
- Metropolitan, Municipal, or District Assembly: Obtain a Business Operating Permit.
- Apply for Special Licenses:
- Depending on the industry, obtain licenses from relevant regulatory authorities.
- Open a Business Account:
- Corporations meeting minimum capital requirements and holding a GIPC Certificate can open corporate accounts.
- Register with the Data Protection Commission:
- All organizations collecting personal data must register to obtain a license.
- Understand Tax Liabilities:
- Ghana Revenue Authority oversees direct and indirect taxes.
- Direct taxes include individual and corporate income taxes, and capital gains taxes.
- Indirect taxes include Value Added Tax (VAT), Customs and Excise Duties.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
