How to get a business license in Ghana?

Do you have questions about how to register a business in Ghana? All enterprises in Ghana must be registered with the Office of the Registrar of Companies (ORC) in accordance with Ghanaian legislation. In Ghana, registering a business requires filling out a set of documents, paying the necessary fees, and submitting the applications to the ORC.

Ghanaian business registration types

Entrepreneurs and investors can register a variety of company entities in Ghana. The establishment of enterprises in Ghana is governed by laws found in the Companies Act 2019, Act 992, Registration of Business Name Act, 2012 (Act 837), Incorporated Private Partnership Act (Act 152), and Public Private Partnership 202, Act (Act 1030).

Selecting the legal framework that best supports your business operation is essential. The several kinds of business registration include:

1. A private company with share limitations
2. Business unrestricted by shares

3. Limited company by guarantee
4. Outside Firm 5. Collaboration
6. Businesses run by one person

The significance of registering a business and the reasons for registering your enterprise

1. Registering a firm makes it a legitimate entity.
2. Registering a business lowers risks and maintains compliance.
3. Formalising your business activities and positioning it for development and expansion are two benefits of registering your company.
4. It is considerably simpler to file lawsuits, sign contracts, and hire staff when your firm is registered.

5. Before you may obtain a business bank account, your company must be registered.
6. It also strengthens the company’s reputation and fosters consumer and prospective client trust.

Pre-Registration Procedures

You should choose several things before registering your company at the Office of the Registrar of Companies. These are the initial steps that need to be taken.

Step 1: Determine the kind of company you wish to register.

You must choose the kind of business structure that best meets your goals as an investor or an entrepreneur. The business structure that the investor/entrepreneur and the business objects choose is one of the factors that determine whether or not a business registration is successful.

Step 2: Select a name for your company.

When registering a business, selecting a name is crucial. A company’s name plays a crucial role in establishing its brand and setting it apart from rivals in the marketplace. Generic names are preferable to specific names that are limited to a certain business activity when picking a name for your company. This allows entrepreneurs the freedom to work on other company goals. Business names ought to be unique, significant, and meaningful.

Step 3: Search for a Business Name.

Once you’ve chosen a name for your company, check to see if the suggested name is available at the Office of the Registrar of Companies (ORC).

The suggested name must have a phrase added to it to make it unique if it is established that there is an existing or similar name.

Step 4: Hold onto Your Company Name

If the investor/entrepreneur plans to register the business later, they must reserve the name after doing a name search. This prevents another person from registering the name. At ORC, business names are reserved following application and payment. For GHS120, you can book the name for three months in advance.

Section 22(1) of Act 992 of the Companies Act 2019 stipulates that,

1. The Registrar should receive an application for a company’s name reservation by mail or in person.
2. Upon acceptance of the application and payment of the required price, the Registrar may reserve a name while a company registers or changes its name.

3. After payment, a name can be held for a period of two months. You won’t be able to apply for a new reservation under that name after that date, but you can reserve it for an additional two months after that.
4. A business cannot register using a name that has already been reserved. Furthermore, names that are too similar to those that are reserved will not be allowed.

Ghanaian Business Registration Procedures

step 1: Obtain a Tax Identification Number (TIN)

Get the Taxpayer Registration Form Individual.pdf file from http://rgd.gov.gh/wp-content/uploads/2015/12.For the purpose of business registration, a TIN must be applied for and obtained by the owner of a sole proprietorship, partners in a partnership firm, and members of corporations. Fill out the TIN forms and include a copy of your picture ID (voter ID, passport biodata, driver’s license). TIN numbers are generated at no cost at any Ghana Revenue Authority office in a matter of 24 to 48 hours.

Corporate organizations can also generate TIN numbers. When a corporate body owns shares of the company that is being registered, this circumstance becomes required. In this case, the corporate entity will get a TIN Form for Organisations, fill it out correctly, and affix a cover letter.

The corporate shareholder will then get the creation of a TIN number.

The following details are needed to fill out an individual TIN form:

• Name
• Occupation
• Photo ID details
• Mother’s maiden name
• Residential and postal address (Digital/Ghana Post Address of the business)
• Contact

Step 2: Fill out the form for business registration.

Get the necessary business registration form from the Registrar General’s Department and fill it out with the necessary data. The general information needed to register a business is provided here.

• Business Name.
• Nature of Business (Give a brief description of the business’ business activities).
• Address of business (House Number or Building Name, Street Name, City, District, Region).
• Email, Telephone number, and Postal Address of the business.
• Personal details of the proprietor of a Sole Proprietor business, Partners in a Partnership Firm, and members of the company. (Nationality, date of birth, occupation, contact, email, and residential address).
• Tax Identification Number of the proprietor of the business or members of the company.

Particular Needs

Certain types of company registration are subject to additional criteria. These prerequisites are;

• Stated Capital
• Authorized Shares
• Notarized Incorporation documents
• Power of Attorney
• Auditor’s Consent Letter
• Partnership Deed.

Step 3: Paying the statutory and filing fees.

Depending on the kind of business registration, different costs apply to different business types in Ghana. The following is the fee schedule:

Limited by shares	Unlimited by Shares	Limited by Guarantee	Sole Proprietor	Partnership	External Company
Incorporation Fee-GHS450	Incorporation Fee-GHS450	Incorporation Fee-GHS430	Registration Fee-GHS100	Registration Fee- GHS240	Registration Fee- US$1,380
Stamp duty- 1% of the Stated Capita	Stamp duty-1% of the Stated Capital

Stamp duty and incorporation filing costs are paid for the registration of businesses limited by shares. One percent of the reported capital is the stamp duty. The GHS450 filing fee

One percent of the reported capital is the stamp duty. For instance, a stamp tax of 1% x GHS100,000 = 1000 Ghana Cedis corresponds to a stated capital of GHS100,000. GHS500 is the minimum declared capital required by all limited liability corporations that are 100% owned by Ghanaians.

Different minimum equity requirements apply to companies with 100% foreign ownership and dual foreign ownership. The minimum amount of equity required by these types of companies is;

• 100% foreign ownership –US$500,000
• A joint venture between a foreigner and Ghanaian – US$200,000
• Trading enterprise (whether jointly owned or 100% foreign owned) – US$1,000,000
• Incorporation and filing fees are also required to be paid upon submission of business registration forms. The total cost is GHS450 which is payable directly at the Office of the Registrar of Companies by cash.

Step 4: Send in the necessary paperwork and registration forms.

Once the necessary business registration paperwork has been filled out, send them to the Office of the Registrar of Companies (ORC).

Step 5: Gathering Registration Records.

After two to three weeks of the registration forms being submitted, pick up the registration paperwork.

Steps Following Registration

There are further steps you need to follow after registering your firm. Some of the next actions after registering are outlined here.

a. Acquire the required authorization and license.

Depending on the type of activity, all registered enterprises must comply with additional regulations. A company’s type of business dictates which agency it must register with in order to obtain a license to operate lawfully in Ghana.

b. Sign up for National Insurance and Social Security.

According to Ghanaian legislation, employers are required to pay SNNIT contributions on behalf of their employees. The National Insurance Trust and Social Security must receive registrations from the employer. In Ghana, each and every salaried worker must apply for a Social Security number. The staff registration checklist for SSNIT is as follows:

• Company registration documents (Certificate of Incorporation, Beneficial Ownership Profile, Form 3, Constitution
• List of employees with their basic salaries and their tier 1 Contributions
• Social Security Number of each director of the company and Valid ID cards
• Email and residential address of each director.
• Taxpayer’s Identification Numbers of applicants.

c. Tax registration by registering with the Ghana Revenue Authority

1. All businesses are required to register with the Ghana Revenue Authority (GRA).
2. Businesses exempted from corporate tax are still required to register their business with the GRA to pay income tax.
3. All businesses registering with the GRA must do so at the nearest GRA district office closest to the project location.
4. To register your company with the GRA, the following documents are required;

• Completed corporate tax registration forms
• VAT registration forms (If Applicable)
• Resume of all directors of the company
• Pictorial delineation of the project/office location

Every year, the tax authorities levy a preliminary tax assessment on all enterprises, including newly registered businesses. The GRA office determines the provisional tax assessment for new business tax registration based on the declared capital, the business’s objectives, and the nationality of the shareholders.

Quarterly provisional tax payments are expected of all Ghanaian enterprises that are subject to taxation.

A tax that is assessed or paid at the time of purchasing goods and services is known as value-added tax, or VAT. It costs nothing to register for VAT. Retailers are required to register and charge VAT if their taxable supplies within a 12-month period total GHS 200,000 or more. The VAT registration checklist is as follows:

• Taxpayer’s Identification Number (TIN)
• Complete the VAT registration Form
• Copies of a full set of Business/ Company registration documents.

All paperwork must be turned in at the Domestic Tax Revenue Division office that is closest to you. Furthermore, there is a penalty equal to twice the tax amount owed when you should have registered for VAT if you fail to register.

d. Make an account with a bank

It is necessary to open a personal or business bank account in Ghana in order to conduct business legally and effectively. The list of paperwork needed to create a personal bank account as a foreign national is provided below;

• A valid form of identification such as a passport.
• Proof of residence.
• Taxpayer’s Identification Number.
• Passport Pictures.
• Work and residence permit.
• A letter of introduction from your banking institution in your home country.

A letter of recommendation from your work or a reference letter from an account holder of the bank you are applying to in Ghana may be required by certain banks.

Here is a checklist for opening a corporate bank account:

• Company Registration Documents.
• Two passport-size pictures of the Signatories to the account.
• Proof of identification such as a passport.
• Proof of residential address for all directors and signatories
• Company physical address confirmation
• Annual returns (for companies registered over one year ago)
• Revenue stamp and constitution of the society if not registered
• Residence permit (if the account signatories are foreigners)