This is a complete guide on how to register a company or business in Ghana – Requirements, Guidelines, Fees, and General Procedures.
Business Registration in Ghana
Before starting a business in Ghana, you must have a business entity. Thereafter proceed to legalize the business entity at the Registrar General’s Department (RGD). Under the laws of Ghana, various forms of business entities can be registered and it is therefore imperative to choose the right legal structure that is best for your business. Below are the various forms of business registration under the laws of Ghana
- Companies Limited by shares
- Companies Limited by guarantee
- Companies with unlimited liability
- External Company
- Sole Proprietorship
Business registration in Ghana has been made quite easy following the automation at the Registrar General’s Department (RGD). All business registration forms are downloadable at http://rgd.gov.gh/index.php/forms/ or on sale for GHS10.00 at the RGD.
How to Register a Business in Ghana
You can now register your company in Ghana, simply by following the steps outlined below.
Registering a Company Limited by shares in Ghana
Below is a step-by-step guide to registering a company limited by shares in Ghana.
STEP 1 – Company Name search at RGD
Before you register a company in Ghana, you must have a company name. Start by conducting your company name search to ascertain the availability of the proposed business name for the company.
After the name search, you can apply to have your business name reserved for 30 days.
STEP 2 – Taxpayer Identification Number (TIN) Registration
Proceed with the Taxpayer Identification Number (TIN) registration for all your company directors, secretaries, and shareholders as well as a TIN for your company. (How to apply for TIN Number in Ghana). TIN numbers are created within 24 to 48 hours at no charge at any Ghana Revenue Authority office.
With regards to TIN numbers for corporate organizations, the situation becomes necessary when the shares of the company being registered are held by a corporate entity.
In such cases, the corporate organization will need to obtain a TIN form for organizations and duly complete same, and attach a letter of introduction. Subsequently, a TIN will be created for the corporate shareholders.
STEP 3 – Complete Forms 3, 4, and Company Regulations
After getting your TIN, then proceed to download and complete the following forms.
- Returns of Particulars of the company limited by shares registration form – Form
- Form 4 for company registration
- Regulations of a Private company limited by shares
The following information is required to complete the incorporation forms
- Company name
- Registered address
- Postal address
- Principal place of business
- Business objects or activities
- Contact information
- Auditors details
- Authorised 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 179, all companies 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 a resident of Ghana.
All directors, secretaries, and shareholders are to append their signatures on relevant pages of duly completed forms before submission.
STEP 4 – Pay for Statutory Fees (Stamp Duty, Business Incorporation, and Filing Fees)
There are two main statutory fees to be paid at the Registrar General’s Department during company registration; these are Stamp duty, Incorporation, and filing fees.
Stamp Duty: This is 0.6% of the stated capital. For example, a stated capital of 100,000 Cedis is equivalent to a stamp duty of 0.6% x 100,000 Cedis = 600 Ghana Cedis. The minimum amount of stated capital for all 100% Ghanaian-owned limited liability companies is 600 Cedis.
However, companies with joint foreign ownership and 100% foreign ownership have different stated capital requirements. The stated capital requirement for companies in this category are;
- 100% foreign ownership – US $ 500,000
- A joint venture between foreigner and Ghanaian – US $ 200,000
- Trading enterprise (whether jointly owned or 100% foreign owned) – US $ 1,000,000
Incorporation and filing fees are also required to be paid upon submission of business registration forms. The total cost is 330 Ghana Cedis, which is payable directly at the RGD in cash.
STEP 5 – Collect Business Registration Certificates
Once every form has been submitted, you are expected to have the process completed in 10 working days after which the following documents will be issued;
- Certificate of incorporation
- Certificate of commencement ` `
- Forms 3 & 4
- Company regulations
These are the legal documents of proof of the company’s existence in Ghana. The documents indicate 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 to open a corporate account.