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Ease of Doing Business in

Ghana

Ghana Download Profile (1726.8KB, pdf)
Region Sub-Saharan Africa
Income Category Lower middle income
Population 27,409,893
GNI Per Capita (US$) 1,480
City covered Accra

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 108 111 up
3
58.82 57.87 down
0.95
Starting a Business 110 103 down
7
83.73 83.73
-
Dealing with Construction Permits 117 112 down
5
65.34 65.48 down
0.14
Getting Electricity 120 122 up
2
60.30 59.48 up
0.82
Registering Property 77 76 down
1
65.99 65.97 up
0.02
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 87 85 down
2
53.33 53.33
-
Paying Taxes 122 119 down
3
62.91 62.91
-
Trading across Borders 154 167 up
13
52.32 43.75 up
8.57
Enforcing Contracts 114 111 down
3
54.00 54.00
-
Resolving Insolvency 155 158 up
3
25.27 25.00 up
0.27

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 110

DB 2016 Rank: 103

Change in Rank: down7

DB 2017 DTF (% points): 83.73

DB 2016 DTF (% points): 83.73

Change in DTF (% points): 0.00

Standardized Company
Legal form: Private Limited Liability Company
Paid-in minimum capital requirement: GHS 100
City: Accra
Indicator Ghana Sub-Saharan Africa OECD high income
Procedure – Men (number) info_outline 8.0 7.8 4.8
Time – Men (days) info_outline 14.0 27.3 8.3
Cost – Men (% of income per capita) info_outline 19.7 54.0 3.1
Procedure – Women (number) info_outline 8.0 7.9 4.8
Time – Women (days) info_outline 14.0 27.5 8.3
Cost – Women (% of income per capita) info_outline 19.7 54.1 3.1
Paid-in min. capital (% of income per capita) info_outline 2.0 33.1 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Acquire a Tax Identification Number

    Agency: Registrar-General Department or Ghana Revenue Authority

    As of 2012, the applicant needs to acquire a TIN before proceeding to company registration. The applicant needs to complete a Ghana Revenue Authority Taxpayer Registration Form-Organisation. The Ghana Revenue Authority(GRA) officers after processing the TIN, sends a text message to the applicant to collect the TIN. This applies to both forms of application submission, whether online or physical filing in person.
    2 days on average no charge
    2

    Check for availability of company name and submit company documents to obtain the certificate of incorporation

    Agency: Customers Service Office of the Registrar General's Department

    The promoter/applicant shall request for a search to be conducted at the Companies Registry (customer service office ) to ascertain the availability and acceptance of the proposed name of the company, and submit the company documents for registration. The Registrar may, on a written application and on payment of the prescribed fee, reserve a name pending registration of a company: section 15(13) of the Companies Act 1963 (Act 179)

    Applicant may pick up a prescribed Form A from the in-house bank, and submit filled forms at the bank. The Registrar examines and issues business registration certificate as well as certified true copy of the form to be submitted as attachment.

    Fees are the following:
    - Name search GHC 25
    - Name reservation GHC 50
    - Complete set of Incorporation forms GHC 15
    - Registration fees GHC 230
    - GHC 5 per certification of regulations (assuming 3 certificates)

    The incorporation documents and forms can be downloaded online at http://www.rgd.gov.gh. They include:

    • Company regulations (four copies)
    • Tax identification number form (one copy)

    The forms require the following information:

    • Nature of the business that subscribers intend to engage in
    • Full names of subscribers and shareholders, their addresses, percentage shareholdings, occupation, and any directorships in any other company
    • Full name and address of company secretary and auditors (a letter of consent to act as auditor is attached)
    • An attestation that the minimum nominal capital complies with the requirement that a company 100% Ghanaian-owned have minimum nominal capital of at least GHC 500

    The tax identification number (certificate) is usually obtained by the Registrar General's Department on behalf of the incorporated company. A letter from an auditing firm must also be presented at the moment of document submission.
    1 day see comments
    * 3

    A Commissioner of Oaths authenticates forms required for the certificate to commence business

    Agency: Commissioner of Oaths

    Form 4 must be completed for the issuance of the certificate to commence business, which requires authentication before a Commissioner of Oaths. The Commissioner for Oaths, located in the Registrar General Department, usually swears the oath within 1 day so that the company can obtain the certificate to commence business.
    1 day (simultaneous with previous procedure) GHC 10
    * 4

    Obtain from the Registrar-General Department the certificate to commence business

    Agency: Registrar-General Department

    After incorporating the company, the founder must complete Forms 3 and 4 within 28 days, indicating, among other information, the names, addresses, businesses, and occupations of the company’s secretary and directors; name and address of the company’s qualified auditor; the address of its registered office; its register of members; the amount of stated capital; and the number of issued and unissued company shares. Forms 3 and 4 must be signed by all company directors and the secretary. As the company's commencement tax, 0.5% of the stated capital is collected by the Registrar-General’s Department on behalf of the Internal Revenue Service (IRS). There is also a 100 GHC fee for forms 3 and 4. Four or five copies of the company regulations and Forms 3 and 4 are required (auditors, banks, solicitors, company secretaries may each require a copy).

    The Registrar of Companies now automatically registers new companies with the IRS. VAT is charged at 15% including a national health insurance levy (NHIL) of 2.5%.

    2 days (simultaneous with previous procedure) 0.5% of the stated capital as commencement tax + GHC 10 (registration fee with Ghana Revenue Authority) + GHC 100 form fees
    5

    Deposit paid-in capital in an account

    Agency: Bank

    The following documents must be presented to deposit paid-in capital in a bank account: copies of company regulations; the certificate of incorporation and the certificate to commence business; and signatures of the authorized company representatives.

    As part of the KYC (Know Your Customer) procedures, most banks require introductory letters from the company's solicitors in order to open the account. Additionally, some banks conduct a physical inspection of the company address.
    1 day no charge
    6

    Apply for business licenses at the Metropolitan Authority

    Agency: Metropolitan Authority

    The cost to apply for a Business Operating Permit (BOP) at the Metropolitan Authority depends on the type of business and the category in which it falls. Documents to be submitted depend on the type of enterprise (for example, restaurants must have permits from the fire department and the Town and Country Planning Authority—and, among other documents, an inspection certificate from the Ghana Tourist Board).

    Fees are subject to charge by the Metropolitan Assembly, according to law. According to the Accra Metropolitan Assembly Fee-Fixing Resolution 2015, the fee for a commercial retail/wholesale standardized shop "Cat. E" is GHC 270.
    7 days GHC 270
    * 7

    Inspection of work premises by the Metropolitan Authority

    Agency: Metropolitan Authority

    An officer visits the business premises and reports to the Revenue Accountant of the Metropolitan Assembly, who then submits a report to the Revenue Mobilization Subcommittee of the Metropolitan Assembly. The subcommittee meets to deliberate on the report and then recommend to the Executive Committee of the Metropolitan Authority, whether any adjustment is required.
    1 day (simultaneous with previous procedure) no charge
    8

    Apply for social security

    Agency: Social Security Office

    To apply for social security, the company must attach the list of employees, their respective salaries and social security numbers, and the company’s certificate of incorporation and certificate to commence business.
    1 day no charge

    * Takes place simultaneously with previous procedure.