Doing business in Ghana
In 2017 Ghana was highlighted as one of the countries in Africa with top notch entertainment industry. With songs like One corner and Michael Dapah’s Man’s not hot, Ghana definitely had a lovely 2017 in the entertainment industry. The entertainment industry isn’t the only place Ghana excelled in 2017, they also recorded great achievements economically and business wise, Ghana ended 2017 with a great GDP and amazing per capita income.
The business ground in Ghana has also been identified and described as very fertile, despite the low population and landmass, Ghana makes up for it with a high individual purchasing power and peaceful environment.
Starting a business in Ghana would be not only an amazing business investment, but also a very profitable one. The Ghanaian government encourages entrepreneurs through diverse incentives and business friendly policies, so if you are thinking of venturing into business in Ghana, then you are on the right track. In this article, we would look at a step by step guide on how to start up your own business in Ghana
The Ghanaian government has made it easier for whosoever wishes to do honest business in Ghana to do so and the laws guiding business start-ups has been clarified. Previously, you needed approval from the Ghanaian Investment promotion Center (GIPC) before you could start a business but this has been changed as you can go ahead and set up your business without initial permission from the GIPC. Nevertheless, each business sector has its own specific laws which must be adhered to, but for this article we would be looking at the general processes involved in starting up your own business In Ghana
How to register your company in Ghana
The Start up Process: Below, the startup process is explained. The costs and time duration stated below are subject to change as different circumstances affect the cost and duration of most business incorporation application. Although the time frame and costs stated are on the average what is available now.
1) Get your T.I.N (tax Identification number): this is a very important step and the very first steps towards starting your business in Ghana. To get your Tax identification number, you need to first obtain a recognized Identity card, which is usually issued for free and proceed to the office of the registrar General or the Ghanaian revenue Authority to fill a form for your tax identification number. It would take 48hrs to get a tax identification number approved for you.
2) Register your company name with the registrar of company: After getting your tax identification number approved, you then need to get a company name. You can check for company name availability at the registrar of company’s office and if it is available you can begin the process of registration by submitting your company documents. It takes 24hrs to confirm availability. You will be issued a form called the Form A and on which you would provide the following information
a) Company name
B) Nature of business
C) Names of shareholders and their addresses and shareholding percentage
D) Names of company directors
E) Names of company auditors and secretaries and their addresses.
F) Nominal capital
G) An affidavit showing the nominal capital is at least GHC500
You would also be required to fill forms for tax purposes during this process and also submit an official letter from an auditing firm.
3) Get the commissioner for Oaths to authenticate your forms: After getting the forms from the registrar of companies, you should proceed to the office of the commissioner for oaths. The commissioner for oaths office located in the Registrar General’s Department is in charge of oaths which would be sworn within a day. After the oath swearing, the registrar of companies would register your company with the Ghanaian internal revenue services.
4) Set up A Bank Account: The next thing you should do would be to set up a bank account for your company. To set up a corporate bank account successfully you would have to submit the required documents. The required documents to be submitted are as follows the certificate of incorporation, the certificate to commence business along with company representatives’ signatures. Then you should deposit a minimum amount into the account.
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5) Get Your Business License: Your business needs a license to operate in Ghana. Visit the metropolitan Authority to apply for your business license. The cost of application isn’t fixed as different kinds of business attract different prices. However the basic price is 270GHC. Every potential business owner in Ghana should endeavor to get a business license, without it you might run into problem with the metropolitan authorities. Application takes 7 days or a week to complete.
6) Your Site is inspected: It is normal for a representative or an officer of the metropolitan authorities to visit your business office or site for thorough inspection After the inspection a report would be submitted to the Revenue accountant, a subcommittee would then be set up to look into the report and recommend adjustments where necessary before approval.
7) Apply for social security for yourself and your employees: The social security and national investment trust (SSNIT) application is done so as to make provisions for retirement. It is a contribution done monthly towards retirement. To apply, you would submit the company’s certificate of incorporation and a comprehensive document showing company’s employee names and salary along with their social security number. This is the last steps but also not the least; it is a very necessary step that every company owner must take.
The above steps are the steps taken while setting up a legal business in Ghana. Each requirement should be duly fulfilled and all necessary documents provided. This is done in order to avoid a run in with the authorities in future or a litigation resulting in shutting down your business. The steps are not just for foreign investors but local investors as well.
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