Starting a business is nothing difficult, all that person must do is provide a product or service to another person that produces a profit to be “in business.”
In as much as registering a business in Ghana isn’t necessarily required to complete business transactions, it is a smart choice for a new entrepreneur.
But, in Africa, up to 70 percent of people who regard themselves as ‘entrepreneurs’ do not own a registered business.
For some of these entrepreneurs in Ghana, it’s just ignorance; they don’t know or understand the importance of getting their business registered. The others, who aren’t totally ignorant, just choose to avoid the upfront cost of registration when they start their business.
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Firms competing against unregistered firms in Ghana was reported at 69.4 % in 2013, according to the World Bank collection of development indicators, compiled from officially recognized sources
Business registration is the process of obtaining legal authorization to conduct business within your chosen jurisdiction. It is a legal obligation of most jurisdictions and ensures that a business is operating under the lawful obligations.
Before registering a business in Ghana, you must know the various types of companies that are available.
Types of companies in Ghana
Sole proprietorship –
This type of company is owned and managed by a single person. This is normally suitable if you would like to start a small enterprise first and move on to bigger things later.
Partnership –
This type of company is where 2 or more individuals join and start a business. This is highly suitable for law firms, architect firms etc.
Company limited by shares –
The shares of the company are not offered to the public. The management of the company is done by a Board of Directors. This is the most common type of business structure this is how to register a company in Ghana.
Company limited by guarantee –
There is no share capital and no directors for this type of company. It is mainly formed for a non-profit organization.
External company –
An external company is a company formed outside of Ghana and seeks to register a place of business in Ghana. This is more commonly known as an offshore company.
It is important to submit a range of documentation, including certifications and professional references, as well as a detailed outline of the structure of the company. In addition, the company must present a proposed company name that complies with the jurisdiction’s legal requirements, which will be assessed by that jurisdiction’s registrar general.
Registration of business name
The initial step when registering a sole proprietorship business is the registration of a business name. This is the most critical step that must be done after wide consultation with other business experts. The name of the business is what will either attract customers or will send them away.
Procedure of registering a business name the procedure for registering a business in Ghana begins with the registration of a business name. Here are the steps followed in registering a sole business name.
Procedure of registering a business name the procedure for registering a business in Ghana begins with the registration of a business name. Here are the steps followed in registering a sole business name.
Pay for a registration form A at the registrar general department and fill in your details in the registration form A.
A well filled registration form A should then be submitted to the registrar general together with the processing fees through their user bank
Upon completion of registration, certified true copy and registration certificate will be ready for collection.
Having acquired your business registration certificate, you will be ready to complete the registration and start the business.
Requirements for registering business name
Principle place of business
Name of the business
Nature of the business
Name, postal address, nationality and other important details
Registration of sole proprietorship business is associated with various charges. The following are examples of different charges imposed for various services:
Registration of business name at 50 cedis
Certified true copy at 10 cedis
Filling of form D at 25 cedis
Other requirements for one to register a sole proprietorship business in Ghana
You will need the following documents for your registration to be complete
Registration Form A
Re-Registration Form A
Form D – change notification on sole business particulars
Registration form A
This is a primary document required to register a sole proprietorship business. It is provided by the act 151 of business name registration of 1962 constitution of Ghana. This form consists of the following information:
Business name
General nature of the sole proprietorship business (e.g. manufacturing, service, commerce, transport, construction and others)
Principle activity of the business
Date of commencement of business
Business location information (city, region, street, house/flat)
Sole proprietor personal details (surname, first name, middle name, date of birth, gender, occupation, marital status e.t.c)
Residential addresses of the businessperson. This includes where the proprietor lives; city, street, district among other details.
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Postal addresses
This form must be filled by the applicant and sent to the registrar of business names via email or through post. This form must be filled accurately and honestly. Feeding false information may attract severe punishment to the applicant.
Registration of business name and CTC is chargeable. Business name is charged at 50GHC while CTC is charged at 10 GCH. In total, an applicant is required to pay 60 GHC.
COMPANIES LIMITED BY GUARANTEE
- Applicant may purchase a set of prescribed regulations and a set of Form 3 from the in-house bank at GH 9.50 cedi.
- Completed forms should be submitted at the Registry with a payable fee of GH 270.00 cedi.
- Lodge the following documents at the Registrar General Department office after completion.
- Declaration
- Consent letter from qualified Auditors.
- The registrar issues certificate of Incorporation and certificate to commence business.
- Time Frame: Within five working days.
- Renewal each year at GH 50 cedi.
Applicant may purchase and complete Forms 20 and 21 from the Ghana Publishing Company Limited. Opposite, Novotel, Accra (Now Assembly Press)
Submit a duly completed forms at the in-house bank together with the following:
Either
- A certified true copy of the Memorandum and the Articles of the Association of the Company registered outside Ghana in English
- A certified true copy of the Certificate of Incorporation.
- Power of Attorney to the Local Manager
Or
- All the constitution of the External Company
- All these duly endorsed by the Ghana Mission in the Country if any or the nearest country where there is Ghana Mission.
- Pay prescribed fee of US$1200 or cedi equivalent.
- The Registrar examines registers and notifies the local manager in writing.
- Filing of annual returns each year at US$600 or Cedi equivalent.
INCORPORATION OF PARTNERSHIP
- Applicant may purchase and complete Form “A” for Incorporation of Partnership from the in-house bank at GH 3.50 cedi.
- Present duly completed form together with a stamped partnership agreement at the Registry.
- Pay prescribed fee of GH 160.00 cedi.
- Registrar examines documents and issue certificate of registration.
Time Frame: Within five working days.
Meanwhile, the Registrar General, Jemima Oware is on record to have said the process of registering a business in Ghana has significantly improved.
Speaking in an interview with Accra based Joy FM, on the ease of business registration in February 2019, Jemima Oware explained that new technologies allow for businesses to be registered between two to three days and not months as has been reported by some entrepreneurs.
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“After you’ve gone through our processes, we would give you a document to show when you should pick your document. This is within three working days for business names and five working days for limited liability but as a business department we have set our target of 2 working days’ business and 3 working days for limited liability, you can register in 2 days, no need for Goro boys,” Mrs Oware said.
Watch this demo video on how to register your business in Ghana
