by admin admin No Comments

FAQ’s FOR IVORY COAST IMMIGRATION

Question 1: List of statutory payments/allowance, legal status value (days %), base threshold, comments
Answer 1: The statutory payments include the salary (Minimum wage: 65 000 FCFA = $120 USD), transport allowance

Question 2: Taxes, is VAT/GST/ Turnover tax applicable? If yes, please state the percentage of the tax, if yes, please state the percentage of the tax. Is VAT/GST applicable to total invoice or to service fee?
Answer 2: VAT is currently at 18%

Question 3: Please list other taxes if applicable, value (%), tax base, comments
Answer 3: see tables below

TAXES PAYABLE BY EMPLOYEES
Wage tax 1.5% applicable on 80% of net income (net income = RB X 80%) or 1.2% on gross income
National contribution for the economic, cultural and social development of the Nation 0 to 50 000 0
50 001 to 130 000 1,5 %
130 001 to 200 000 5 %
More than 200 000 10 %

General income tax Net taxable income (R) = [80% B – (IS + CN)] x 85%
TAXES ON WAGES PAYABLE BY EMPLOYERS
Contribution payable by employers EC proper for expatriate staff salaries: 11.5%
National contribution for the economic, cultural and social development of the Nation (CN) – Local staff: 1.5%
– Expatriate staff: 1.5%

Learning tax – Local staff: 0,5 %
– Expatriate staff: 0,5 %

Additional tax on continuing vocational training – Local staff: 1,5 %
– Expatriate staff: 1,5 %
Transport allowance Minimum 30 000 CFA ($55 USD)
SSNIT 5.4%
Question 4: Which day is payday?
Answer 4: End of the month or the last Friday of the month

Question 5: Is there any specific legislation regarding commission/bonus payout?
Answer 5: Commissions / bonus payout are taxable at the same rate as the salary and have no limit

by admin admin No Comments

Business Registration In Ghana

There are various forms of business entities that can be registered under the laws of Ghana and it is therefore appropriate to choose the right legal structure that best serves your business intentions. These are the various forms of business registration under the laws of Ghana.

  • Unlimited Liability Companies
  • Limited Liability Companies
  • Companies Limited by guarantee
  • Sole Proprietorship
  • Partnership firms
  • External Company

With the automation at the Registrar General’s Department (RGD), business registration has become fairly easy.

All business registration forms are downloadable at http://rgd.gov.gh/index.php/forms/  or on-sale at the RGD. Register your company in Ghana with ease, by simply following the steps outlined below:

Steps to Registering a Company Limited by shares in Ghana

STEP 1: Conduct a company name search at the Registrar General Department

The possibility of choosing the same name for your business as someone else is quite high. It is therefore very essential that you conduct a name search of your company at the Registrar General’s Department, to ensure that the name is available. Should the name be available, there is a period of thirty days during which the selected name can be reserved, upon request.

The name of your business is key, as it should reflect the nature of your business or at least be relevant to your business activities. The Registrar General’s Department is highly likely to reject any names that sound offensive or too similar to other existing businesses.

STEP 2: Taxpayer Identification Number (TIN) registration for all company directors, secretary and shareholders

Download TIN forms @ http://rgd.gov.gh/wpcontent/uploads/2015/12/Taxpayer-registration-form-individual.pdf . All company directors, secretary and shareholders are required to register and obtain a TIN for the purposes of business registration. Complete TIN forms and attach a copy of photo ID (Drivers, passport bio-data, voters ID). TIN numbers are created within 24 to 48 hours at no charge at any Ghana Revenue Authority office.

TIN numbers can also be created for corporate organizations This situation becomes necessary when the shares of the company being registered are held by a corporate entity. In such a scenario, the corporate organization will obtain a TIN Form for Organizations and dully complete same and attach a letter of introduction. A TIN number will subsequently be created for the corporate shareholder.

All persons or organisations are required to have one TIN number for all their registered businesses; in case you decide to register more than one business entity or you serve as a director on several business organisations. Information required to complete an individual TIN form include;

  • Name
  • Occupation
  • Photo ID details
  • Mother’s maiden name
  • Residential and postal address (Digital/Ghana Post Address of the company)
  • Contact

STEPS 3 : Complete form 3, form 4 and Company Regulations  

These forms can be accessed on http://rgd.gov.gh/index.php/forms/ and require information such as company name, contact, business objectives, principal place of business, stated capital, postal address, auditor’s details as well as personal details of the director, secretary and shareholders.

Some vital information required to complete the forms includes:

  • Company name
  • Registered address
  • Postal address
  • Principal place of business
  • Business objects or activities
  • Contact
  • auditors’ details
  • Authorized and issued shares
  • Stated capital
  • Shareholding structure
  • Personal details of directors, secretary and shareholders (nationality, date of birth, occupation, residential address)

According to the Companies Act 1963, Act 179, all c0mpanies are required to have at least two initial directors and a secretary during the company registration process. At least one of the company directors or secretaries must be resident in Ghana. After forms are duly completed, the directors, secretary and shareholders have to append their signatures on relevant pages before submission.

STEP 4: Making the required payment:

After filling the forms with the needed details, there is a need to submit the forms at the nearest Registrar General around your region. There are two main statutory fees to be paid and these fees are:

*incorporation and filing fees

* stamp duty: which is 0.5% of the company’s stated capital.

NOTE:  The minimum stated capital for Limited Liability company owned by a Ghanaian is 500 cedis.

STEP 5: Pick up business registration certificates

Upon submission of forms, one should expect to have the process completed in less than a month thus between 2 to 4 weeks, after which the following documents will be issued;

  • Certificate of incorporation
  • Certificate of commencement `               `
  • Form 3 & 4
  • Company regulations

These are the legal documents of proof of company’s existence in Ghana. The documents will indicate clearly the business name, activities, business address, directors’ details, company TIN as well as shareholders information among others. The business certificates can be used for any business transaction or open a corporate bank account with any of the commercial banks in Ghana.

Can a foreign investor start a company in Ghana?

Yes, any foreigner can start a company in Ghana as long as that investor has valid paperwork and right financial backup.

Can a foreign Company open a branch in Ghana?

Yes a foreign company can open a branch in Ghana with 2 options, thus as a Ghanaian company or either as extension of the foreign company.

by admin admin No Comments

Global Business Economy

The global economy can be envisioned as one largely connected portrait of different markets; linked together by the need to transact. However, this need varies amongst communities, sects and ethnicities yet the benefits of transactions differ from individual to individual. Business is one of the many ideologies that bridges in the gap in culture and merges differences between people. Depending on the nature of business, it may require multiple interactions between the parties involved or just a onetime interaction. Knowing that most of the world’s fundamental systems rely directly or indirectly on business for maintenance and proper function makes it safe to acknowledge that business has been a key element of human existence even in prehistoric times.

Business is a blanket term for all beneficial exchanges that are characterized by the interchange of goods and services for money or kind payment, today’s world is gradually coming to the realization that money is a broader term than we envisaged . This blanket term of business when broken down into fundamentals has transactions as a focal point. Therefore so far as transactions occur business will always play a dominant role in the existence of humanity as a race.

Without need for a service or a good a transaction cannot be completed and without someone to supply the needed good or service, it can also not be completed. Business is therefore a means of providing value added solutions to people who are willing and able to appreciate these solutions in cash or kind payment. Now where there could be a course for discussion is determining how valuable the solution is and how much money or kind payment a person is willing to part with to gain the solution.

At certain points in history, humanity realized the need to engage in meaningful exchanges of goods and services produced on a large scale hence the need for states to become industrialized and commercial. With the mindset of maintaining power and influence in their ability to match and meet the demands of other countries. Meaning that the most provident nation could leverage on their ability to provide as a means of controlling the decisions of other nations who were dependent on them. This idea or concept bears similarity to other economic and international trade theories such as the mercantile theory (primarily used as a mean of maintaining wealth and influence back in the sixteenth century. This is a traced path of how business could usurp all other activities and gain control of world power and influence, leaving authority in the hands of the nation that best meets the need of many countries in the world.

Amidst the key elements of the business revolution is the most important member…People… Just as people have changed over the years, the dynamics of business have improved with a number of principled organizations showing obeisance to business ethics.

Time has proven that business should be easier to conduct and should certainly be regulated by a set of rules domestically and internationally that protect the best interests of all parties involved. This in turn makes it easier to regularize and monitor business activities to maintain orderliness in society.

We live in a fast paced business world that gives us the opportunity to conduct business right from the comfort of our homes and also exchange information anywhere across the globe. The world is making continuous strides to expand the scope of business and develop it further into an all-inclusive aspect of life. And limits of business knowledge could only further and further as the days pass.

by admin admin No Comments

Boston Fed says Main Street program now ‘fully operational’ and ready to purchase loans

NEW YORK (Reuters) – The Federal Reserve Bank of Boston said on Monday the Main Street Lending Program is now fully operational and ready to purchase eligible loans.

The Main Street lending facility, which opened for lender registration in mid-June, is meant to extend easy credit to small and mid-sized businesses that cannot get it elsewhere.

The Fed encouraged registered lenders to start submitting qualifying loans. The U.S. central bank also announced it intends to publish a state-by-state listing of registered lenders that are accepting new business customers under the program and that choose to be listed.

Lenders had still not made any loans under the program as of July 1, according to data released by the Fed last week.

Large financial institutions that work closely with the Fed, known as primary dealers, slashed in half their expectations for how much take-up they expect from the Main Street lending program, according to a survey released last week by the New York Fed.

It is not entirely clear why the loans have not drawn more interest. When the Fed first proposed it, staff worked urgently on standing it up as thousands of letters poured in with suggestions for how to make it more useful and questions about where to find participating lenders.

source: reuters.com

by admin admin No Comments

U.S. job growth accelerates; layoffs remain elevated

Lucia Mutikani
5 MIN READ

WASHINGTON (Reuters) – The U.S. economy created a record 4.8 million jobs in June as more restaurants and bars resumed operations, but layoffs remained elevated and raging COVID-19 cases across the country threaten the fledgling recovery.

The reopening of businesses after being shuttered in mid-March has unleashed a wave of coronavirus infections in large parts of the country, including the populous California, Florida and Texas. Several states are scaling back or pausing reopenings, and sending some workers back home.

Still, the rebound in hiring added to a stream of data, including consumer spending, in suggesting that the recession which started in February was likely over.

Federal Reserve Chair Jerome Powell this week acknowledged the rebound in activity, saying the economy had “entered an important new phase and (had) done so sooner than expected.” But Powell cautioned the outlook “is extraordinarily uncertain” and would depend on “our success in containing the virus.”

The jump in nonfarm payrolls in June was the largest since the government started keeping records in 1939. Payrolls rebounded 2.699 million in May after a historic 20.787 million plunge in April. Economists polled by Reuters had forecast payrolls increasing by 3 million jobs in June.

RELATED COVERAGE
Amid strong June job growth, signs U.S. recovery may be stumbling
U.S. trade deficit widens as exports fall to lowest level since 2009
See more stories
President Donald Trump at a press briefing after the data said the jobs report “proves that our economy is roaring back.”

But despite the better-than-expected increase, employment remains 14.7 million jobs below its pre-pandemic level.

The measurement of the unemployment rate continued to be biased down by people incorrectly misclassifying themselves as being “employed but absent from work” last month.

The jobless rate fell to 11.1% last month from 13.3% in May. The Labor Department’s Bureau of Labor Statistics, which compiles the employment report, said the unemployment rate would have been 12.1% without the misclassification problem.

Hiring last month was boosted by the typically low-paying leisure and hospitality industry, which added 2.1 million jobs, accounting for about two-fifths of the gains in payrolls. The return of these workers pushed down average wages 1.2% in June.

Some companies are cutting wages and reducing hours.

Stocks on Wall Street rallied on the employment data. The dollar was steady against a basket of currencies. U.S. Treasury prices fell.

BROAD JOB GAINS
There were strong job gains in the retail, education and health, manufacturing, construction and professional and business services sectors. Government employment rose modestly as local governments hired teachers and support staff. State governments, confronting reduced revenues and stressed budgets caused by the pandemic, laid off more workers in June.

Employment is increasing largely as companies rehire workers laid off when non-essential businesses like restaurants, bars, gyms and dental offices among others were closed to slow the spread of COVID-19.

Economists have attributed the burst in job gains to the government’s Paycheck Protection Program, giving businesses loans that can be partially forgiven if used for wages. Those funds are drying up and many companies, including some not initially impacted by lockdown measures, are struggling with weak demand forcing them to lay off workers.

Economists and industry watchers say this together with the exhaustion of the PPP loans has triggered a new wave of layoffs, that is keeping weekly new applications for unemployment benefits extraordinarily high.

In a separate report on Thursday the Labor Department said initial claims for state unemployment benefits fell 55,000 to a seasonally adjusted 1.427 million for the week ended June 27. Though claims have declined from a record 6.867 million in late March, progress has stalled.

The claims report also showed the number of people receiving benefits after an initial week of aid rose 59,000 to 19.290 million in the week ending June 20. These so-called continued claims, which are reported with a one-week lag, have dropped from a record 24.912 million in early May.

There were 31.5 million people collecting unemployment checks in mid-June.

With the measurement of the unemployment rate continuing to be distorted since March economists recommend focusing on continuing claims and data on the total number of unemployment checks recipients to get a better view of the labor market.

Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci

Our Standards:The Thomson Reuters Trust Principles