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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.

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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.