Can foreigners start a business in Ghana?
For both domestic and foreign businesses, the Ghana Investment Promotion Center (GIPC) has created a welcoming business climate. Because there are more private and public businesses in Ghana, there is also a favorable business environment. If businesses are set up appropriately, they can make use of this benefit.
The following enterprises are only available to Ghanaians and cannot be operated by non-Ghana is,
Selling items or rendering services in a market, as well as small-scale commerce, hawking, or the sale of things from a stall anywhere. The provision of taxi or car rental services by a business with a fleet of no more than twenty-five cars. Operating a barbershop or beauty parlor. The production of recharge scratch cards for use by telecom users. Manufacturing of workbooks and other essential stationery. The sale of pharmacological items in completed form. Sachet water production, distribution, and retail, except for the football pool, all areas of the pool betting industry, and lotteries.
A business with non-Ghanaian ownership must have a minimum stated capital of USD 500,000. The non-Ghanaian shareholder(s) in a joint venture business between a Ghanaian and a non-Ghanaian must contribute USD 200,000 to the company’s stated capital. According to the GIPC Act of 2013, a Ghanaian citizen cannot own less than 10% of the stock in any joint venture firm that is registered with them. There are no capital requirements for an external company that was initially created in another country but has a location of business registered in Ghana. However, the external business pays greater registration fees to the GIPC (currently around USD 11,000).
There is a USD 1M capital need for trade enterprises in which non-Ghanaians plans to participate, in addition to the USD 500,000 and USD 200,000 capital requirements mentioned above for totally foreign-owned and jointly held companies with Ghanaians and non-Ghanaians. Trading enterprises are those that “purchase and sell foreign goods or services,” as stated in the GIPC Act of 2013. Whether in a joint venture with a Ghanaian or a foreign-owned firm, a non-Ghanese person must have USD 1 M in the capital. Companies with foreign ownership may satisfy the minimum capital requirement by bringing in cash, business equipment worth USD 1 million, USD 500,000, USD 200,000, or a mix of both.
How much does it cost to register a business in Ghana?
Investors typically need 2 days to obtain a Tax Identification Number, which is free of charge. It will take 1 day to confirm the availability through the Registrar General’s Department’s Customers Service Office. The Oaths authenticates paperwork will take one day to obtain. To receive the certificate from the Registrar-General Department and pay the GHC 100 form costs, will take 2 days. Paid-in capital will not incur any additional fees when deposited in an account with a one-day requirement.
Investors must pay GHC 270 to the Metropolitan Authority to apply for the business permits, which are necessary for 7 days. The Metropolitan Authority’s obligatory one-day inspection of the workplace will not cost you anything more. In addition, the processing charge is GHC 11,760, the renewal fee is GHC 17,640, the transfer value up to $500,000 per year is GHC 24,696, the transfer value up to $750,000 per year is GHC 2,297,183.
Foreign investors should make a pre-plan for how to launch a business in Ghana in addition to completing the necessary legal requirements. For instance, market analysis, first-year capital needs, second-year capital needs, and third-year product/service prices.
What is the process of registering a business in Ghana?
The following steps must be taken by all investors, whether they are domestic or foreign, to register the firm. The applicant must receive a Tax Identification Number before moving on to the company registration process. The TIN form is obtained along with the applicant’s free ID card. Obtaining the Tax Identification Number could take a total of, on average, two days. The Form is made available to interested applicants by the Registrar-Generals Department or the Ghana Revenue Authority.
To receive the certificate of incorporation, investors must confirm that desired company names are available and complete the necessary paperwork. The applicant may initially pick up a required Form A from the on-site bank, which must be turned in at the bank. The company’s Registrar will not only review and provide a certificate of business registration but will also confirm that the form submitted as an attachment is a true copy. The following details should be included in the forms: the name of the company, the type of business the subscribers plan to conduct in Ghana, their full names, addresses, and percentage shareholdings; their occupations; and any directorships they may have in other businesses. A business must have a minimum of two directors, at least one of whom must be a Ghanaian resident (though this is not required), and all of whom must be of sound mind and legal age (not younger than 21). Additionally, a letter of consent to function as an auditor is supplied, together with the full name and address of the company secretary and auditors. The information regarding the stated capital and the number of shares the company is required to have at registration must be given. An affirmation that a corporation with 100% Ghanaian ownership has minimum nominal capital of at least GHC 500 complies with the criterion. Investors must complete a document at the Registrar-Department Generals for tax purposes. After filling out the form, representatives, and organizations from Ghana’s Revenue Authority help generate a tax identification number for the business and each of its employees. To get a tax identification number (certificate) on behalf of an incorporated company, the department of register general requires four or five copies of the company regulations as well as Forms 3 and 4, as well as submissions to auditors, banks, solicitors, and company secretaries. A letter from an auditing firm must also be supplied during the document submission, which is another crucial element.
New businesses in Ghana are immediately registered with the IRS by the Registrar of Companies, and the Registrar General’s Department’s Commissioner for Oaths normally administers the oath within a day so that a business can obtain the certificate to begin operations. The following documents, along with copies of them, must be provided by the investors before the paid-in capital can be deposited in a bank account: the company regulations, the certificate of incorporation, the certificate to start operations, and the signatures of the authorized company representatives. The business license, commonly referred to as the Firm Operating Permit (BOP), is the official authorization to operate the business and would grant the green light for the company’s launch. The crucial point is that if the investors do not have the permit before starting the firm, it could cause problems with the local government. Local or foreign business owners should be aware that the cost of an application with the Metropolitan Authorities depends on the type of business. Additionally, they should provide the relevant documentation for the type of business they are starting, such as an inspection certificate from the Ghana Tourist Board and permits from the fire department and the Town and Country Planning Authority for restaurants. You might be interested in learning more about Ghana foreign company registration.
Once the investors have completed the aforementioned requirements, an officer will visit the business location and report to the Metropolitan Assembly’s revenue accountant by submitting a report to the committee responsible for revenue mobilization. The subcommittee will then meet to discuss the report and make recommendations to the Metropolitan Authority’s Executive Committee regarding whether or not any adjustments are necessary.
All business owners enroll themselves, as well as their staff, in the Social Security and National Investment Trust (SSNIT), which is advised because it allows them to make retirement payments. To apply for social security, the company must include a list of all its employees, their respective salaries, social security numbers, and certificates of commencement of business.