Starting a Business in Ghana

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Standardized company

Registration Requirements Summary:

Registration Requirements Details

Procedure 1.

Check for availability of company name and submitt company documents to obtain a incorporation certificate

Time to complete:

1 day

Cost to complete:

name search – check the availability of company name is free, check the particulars of an existing company is GHC5 per search; complete set of Incorporation forms – GHC10. In addition, GHC 50 for registration of a limited company +GHC 10 filing fee for Fo

Name of Agency:

Comment:

The entrepreneur arrives at the customers service office to reserve the company name and submit the company documents for registration.
-A search is conducted for the proposed company name and, if it is available, a reservation is made.
-The entrepreneur files the proposed company regulations with the Registrar. The regulations must be legibly printed or typewritten (or in a similar form acceptable to the Registrar). After the incorporation documents are assessed, the payment is made in cash or by a bank-certified check payable to the Registrar General.
The incorporation documents consist of the following forms:
- Company regulations (four copies).
- Form 3, Statement of shareholding structure (five copies).
- Form 4, Stated capital (two copies).
- Tax identification number form (one copy).

The forms require the following information:
- Name of company.
- 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 names of the first directors of the company. A company must have a minimum of 2 directors and at least one director must be a resident of Ghana at all times, of sound mind, and of legal age (not younger than 21).
- Full name and address of company secretary and auditors (a letter of consent to act as auditor is attached).
- The number of shares that the company is to be registered with and the stated capital.
- 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 company regulations may be drawn up by the party proposing to incorporate the company, or the standard format that comes with the incorporation forms may be adopted.

-The tax identification number (certificate) is usually obtained by the Registrar General's Department on behalf of the incorporated company. 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).

Procedure 2.

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

Time to complete:

1 day

Cost to complete:

GHC 2

Name of Agency:

Comment:

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’s Department, usually swears the oath within 1 day so that the company can obtain the certificate to commence business.

Procedure 3.

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

Time to complete:

2 days (simultaneous with previous procedure)

Cost to complete:

0.5% of the stated capital as commencement tax + GHC 10 (registration fee with IRS)

Name of Agency:

Comment:

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).

The Registrar of Companies now automatically registers new companies with the IRS. For companies engaged in general commercial or industrial activities, the minimum registration fee is GHC 1 and the maximum registration is GHC 10, as calculated on projected turnover. Obtaining a tax clearance certificate—if the company is otherwise entitled to a certificate and has a satisfactory tax position—will cost GHC 2. VAT is charged at 15% including a national health insurance levy (NHIL) of 2.5%.

Procedure 4.

Deposit paid-in capital in an account

Time to complete:

1 day

Cost to complete:

no charge

Name of Agency:

Comment:

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.

Procedure 5.

Apply for business licenses at the Metropolitan Authority

Time to complete:

7 days

Cost to complete:

GHC 91.5 (varies, depending on the nature of the business)

Name of Agency:

Comment:

The cost to apply for a business license 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).
Companies fall into five categories:
A. GHC 500,000 in turnover: GHC 400
B. GHC 210,000–500,000 in turnover: GHC 245.
C. GHC 100,000 –200,000 in turnover: GHC 160.
D. GHC 3,000–100,000 in turnover: GHC 91,5.
E. GHC 0–300 in turnover: GHC 49,5
Fees are subject to charge by the Metropolitan Assembly, according to law.

Procedure 6.

Inspection of work premises by the Metropolitan Authority

Time to complete:

1 day (included in previous procedure)

Cost to complete:

no charge

Name of Agency:

Comment:

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.

Procedure 7.

Apply for social security

Time to complete:

1 day (simultaneous with previous procedure)

Cost to complete:

no charge

Name of Agency:

Comment:

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.

Procedure 8.

Obtain the environment certificate

Time to complete:

25 days (simultaneous with previous procedure)

Cost to complete:

GHC 5 for EA1 Form & GHC 7 for EA2 Form

Name of Agency:

Comment:

The company submits an environmental permit (EP) form, which is used as the registration form. The Environmental Protection Agency (EPA) determines the required level of assessment and whether the proposed development should be subject to further assessment. An EPA agency officer conducts a site inspection and presents a screening report to a technical review committee for its decision within 25 days. The screening results will determine the next action. Projects are classified into three categories: (a) no impact; (b) minimal impact, and (c) impact. For the second category, the company must file a detailed report. For the third category, a full environmental impact assessment is done.

In cases of potential significant adverse environmental impact, the applicant will be required to submit an environmental impact statement (EIS), following a thorough environmental impact assessment. To this end, the proponent undertakes a scoping exercise based on widespread consultation with interested and affected parties. The applicant then commissions a detailed environmental impact assessment study. During the study, the applicant must initiate a public information program for the likely affected areas. Public concerns must be recorded and addressed by the EIS. The applicant submits a final draft EIS to the Environmental Protection Agency for the review of its technical team. Copies of the EIS are placed at visible points. The EPA publishes the EIS in newspapers for 21 days for public comments. The law provides for public hearings on the matter, which may extend application processing. If the EIS draft is found acceptable, the proponent is notified to finalize the report and submit to the EPA eight print copies and one electronic copy. Upon submission of the final report, the applicant must be issued an Environmental Permit within 15 working days, and notices are published in the Gazette. If the undertaking is approved, the proponent shall pay processing and permit fees before collecting the permit. If a applicant disagrees with the EPA decision, he/she can appeal by lodging a complaint within 30 days of becoming aware of the EPA's decision. The Minister within 14 days of the receipt of the complain shall appoint a panel to determine the issues and must report to the Minister within 60 days fromm the date of reference of any matter to it by the Minister.

No fixed fees apply because the cost depends on which consultant is commissioned to assess the environmental impact of the work involved (if applicable).