How to Register a Business in Ghana (2020)

Ghana is one of the fastest-growing economies in Africa so it is not surprising that most people are looking for ways to register a new business or company in Ghana. It is important to register it legally before starting a business. In fact, this is the first step in starting a business that you expect to stand the test of time.

In Ghana, you will need to apply to the Registrar's General Department office to register a business or company. Before taking this step, it is important to find the different types of registration available and also the documents required for the registration process. The Ghana Registration Act provides for different categories of registration. They are described below:

1. Sole proprietorship.
2. External companies.
3. Unlimited liability companies
4. Company limited by guarantee.
5. Companies are limited by shares.

Previously, registering a business in Ghana was quite complicated but recent events have made it a very easy and stress-free process. You can click here to download your forms at GHS 10.00 to begin the registration process.

To register your business in Ghana, take the following steps:

Step 1: Run a name search with RGD

The first step is to search for the name and the laws make it compulsory. This is because you can choose a name that is already registered by someone else that is not acceptable. Once you complete the forms and the name is approved, you may have thirty days to complete your registration or else you will forfeit the name. When choosing a name, you must ensure that the name corresponds to the business you want to perform. The registrar's office may possibly reject a name that is similar to the one already in place. Lastly, the name is not an objectionable or a trademark infringer.

Step 2: Taxpayer Identification Number Registration (TIN)

This is basically the case for registering a company, regardless of the category of a company. All company directors, shareholders, and secretaries must register their TIN as it is required to register the company. You can download the TIN forms here. The forms must be filled out and then submitted to the Ghana Revenue Authority office with a copy of the individual photo ID (international passport or driver's license or voter ID). Registration is free and it takes 24 to 48 hours for the number to be generated. Once you have registered the TIN number you can use it for all your business. You are not allowed to create new TINs for different businesses. These are the pieces of information you need to complete the TIN form:

• Full name
• Career
• Photo ID (driver's license, your passport information page, voter card)
• Mother's maiden name
• Residential and postal address

Step 3: Fill out the organization forms and submit

You will need to fill out the affiliation form with the following companies:

• Name of the company
• Address of the proposed company
• Company postal address
• The main place of business
• Business activity or object
• Contact number and email
• Auditor details
• Issues and Affiliate Shares
• Fixed capital
• The defined shareholding structure of the organization
• Full details of directors, secretaries, and shareholders. Required details include their date of birth, nationality, residential and contact address and occupation.

Please note that it is required by law that each business must have at least two directors and one secretary at the time of registration. In addition, at least one of the directors or secretaries must be a resident of Ghana at the time of the article. After that, all directors, secretaries, and shareholders have to add their signatures to the forms before final submission.

Step 4: Pay the statutory fee

After submitting the forms, you are required to pay legal and processing fees by law. There are two types of fees paid by the Office of the Registrar General and those are stamp duty and incorporation and fee filing. They are explained below:

Stamp duty by law, you must pay 0.5% of the capital described in the forms submitted. The required amount of start-up capital for all locally owned businesses is the GHC 500 the required capital for foreign-owned companies varies. They are described below:

1. 100% foreign-owned - $ 500,000
2. Joint-owned foreign and Ghanaian business - $ 200,000
3.  A business venture (owned locally or overseas) -, 000,000,000
4. Establishment and filing fees. The fees required for inclusion and filing are GHC330. This fee is payable at the cash registrar general's office.

Step 5: Collect Registration Certificate

The certificates are expected to be ready within two weeks, after the forms are properly filled out and submitted, and the required fees are paid. These are the documents you will collect later:

• Certificate of Organization
• Start certificate
• Company rules
• Forms 3 and 4

The documents described above provide evidence that the business is registered in Ghana. They are expected to display the registered name, exact business activity and business purpose, business address and business TIN details. They will also show details of directors and secretaries, as well as details of partners. These documents may be used by the business owner for any kind of transaction with the business or other business and the bank.

Conclusion

You must have noticed that registering a business is a very simple process. However, you must ensure that the forms are completed with the correct information as any errors may lead to rejection. We believe that this article has been helpful in finding your knowledge of how to register a business in Ghana.