How To Start A Business In Ghana
How To Start A Business In Ghana– Nestled on the coast of the Gulf of Guinea, Ghana, a nation in Western Africa has long been praised for its robust business environment fostering unlimited growth potential. As an ideal business hotspot, Ghana attracts diverse investors and entrepreneurs globally. Regardless of industry type or business scope, every entity in Ghana, be it local or overseas, must get registered in the first place. You must know how to register your business in Ghana before embarking on the corporate journey. The article aims to unveil every detail concerning the establishment of a new business in Ghana.
Underscoring the importance of Ghana from a business standpoint
Before you delve into the legalities of how to start a business in Ghana, let’s take a sneak peek into what makes Ghana an ideal business hub.
Register Your Business In Ghana
According to the World Bank’s report, Ghana is proactively striving to strengthen digitization and mitigate potential barriers to the economy for expediting growth and improving revenue mobilization. The report informs that Ghana is undergoing significant transformation in digitization and formalizing the entire system to elevate inclusivity and promote transparency, an ideal prospect for local and global entrepreneurs.
These changes have started to become evident in the banking and financial sectors thanks to the expansion of mobile interoperability. Even the port authorities and customs have leveled up their operation through rapid digitization, allowing expedited inspection and mobilization of shipments.
Another key change that Ghana has implemented in recent years is the deployment of an online system for company registration. The step came as a relief for aspiring entrepreneurs who often have to navigate the intricate regulations, which heavily rely on heavy paperwork and tedious procedures.
The government of Ghana is striving to make this system more agile, secure, and hassle-free, aiming to promote entrepreneurship among the local and global business community.
Business models available in Ghana
Ghana offers various business structures to choose from, each adhering to distinct legal requirements and constitutional regulations. Some of the most popular business models include:
- Sole Proprietorships
- Partnerships
- Companies limited by shares,
- Companies limited by
- Guarantee
- Unlimited companies
- External companies.
Getting yourself accustomed to constitutional norms for each business structure is important before you register your business in Ghana.
Steps to register your business in Ghana
Adherence to the following steps is important to register your business in Ghana:
1. Choose the Type of Company
Selecting an apt business structure is vital for a hassle-free business journey. It is important for you to weigh each business structure against your business goals, management hierarchy, and ability to handle operations regulations.
However, an ideal business structure is not necessarily one that adheres to fewer compliances. Instead, it should be the one that offers adequate legal protection and aligns with your business requirements.
For example, business structures like Sole Proprietorships and Partnerships are mostly selected by small to moderately-sized businesses since they adhere to minimum compliances, and attract fewer regulations when it comes to registration.
Likewise, business structures like companies limited by shares and companies limited by guarantee are suitable for businesses with large operations.
2. Decide on Company Directors and Secretary:
Appointing at least two directors who have attained the legal age is mandatory. Remember that one of the directors should be Ghanaian. The same rules come into play when it comes to appointing the company secretary.
Note: the company secretary can be a body corporate.
3. Appoint Auditors:
The directors so appointed must appoint the first auditors based on the enforced legal grounds.
4. Choose a Business Name:
This next step involves selecting and registering a valid and trademark-free business name with the competent authority.
5. Register with the Ghana Revenue Authority (GRA):
Registering with the Ghana Revenue Authority (GRA) should be your next step for securing a Tax Identification Number (TIN) for members.
6. Prepare the Company’s Regulations:
Regulations refer to a constitutional document that entails key information such as the company’s name, roles of the members, object to which the company is committed, share capital, members’ liabilities, etc.
7. Submission to Registrar of Companies:
In this step, you are required to file an incorporation application with the Registrar of Companies.
Note: The application fee for the company registration is equivalent to 1% of the company’s stated share capital.
10. Obtain GIPC Certificate:
A GIPC certificate plays a vital role in fostering business growth by facilitating unmatched benefits, such as tax exemption, easy availability of credits, and automatic expatriate quotas.
11. Register with Other Mandatory Institutions:
Other key certificates that you must secure for a simplified business journey include:
- Tax certificate from Ghana Revenue Authority
- Social Security and National Insurance Trust (in case your entity leverages manpower).
- Environmental Impact Assessment Certificate (if your entity falls under the notified category).
- Business Operating Permit from a local authority.
12. Apply for industry-specific Licences:
If your entity falls under the notified category, you will be required to obtain industry-specific approval from the competent authority. This certificate is unrelated to establishment permits.
13. Open a Business Account:
Corporations adhering to the minimum capital threshold and having a valid GIPC Certificate can open corporate accounts.
14. Register with the Data Protection Commission:
This certification is mandatory for entities leveraging customers’ data.
Conclusion
Being one of the most promising African nations, Ghana adheres to limitless business potential which strongly resonates among local and global businesses. As with other nations, Ghana also demands to follow the aforementioned legalities for a seamless business establishment. Ascertaining these requirements is vital for a hassle-free business journey. However, if dealing with cross-border legalities is not something you are comfortable with, let Adviso help you out.
Adviso has poised itself as a premier destination for startups and license-seekers. Whether you are eyeing to go global or seek a specific compliance-intensive license, Adviso is a go-to agency for all such requirements.
