Cost of Registering a Company in Ghana

URL Magazine

You are aware that starting a business might be financially risky. Starting a business can be expensive, but it doesn't have to be that way if you do some planning and study. The amount you may invest in your firm, though, can be significantly impacted by unforeseen expenses that may have escaped your attention in the past.

Businesses typically maintain their financial records on a cash basis. This means that a business's accounting records must explicitly show how much money was received, what was purchased, and what profits were generated.

You must register with the government in order to keep track of your company's financial records. A legitimate bank account and an official letter of incorporation issued in the name of your business are typically necessary for this.

A business entity is the one requirement you must meet before starting a business in Ghana. The next step is to formalize the company by registering it with the Registrar General's Department (RGD). There are various business entities that may be formed in Ghana, and it is crucial that you make the proper decision by selecting the legal structure that is most appropriate for your company's industry.

The following is a list of various business registration types permitted by Ghanaian law:

- Sole Proprietorship

- Foreign/External Company

- Companies with guarantee restrictions

- Unlimited liability companies

- Companies with share restrictions

Every business must submit its yearly returns as a going concern, and as the company develops and changes, it may also occasionally submit other statutory forms and resolutions. The Registrar General's Department of Ghana (RGD) offers a wide range of services, including will administration, business registration, marriage certification, and the registration of trademarks and patents. What Is The

 

Cost of Business Registration in Ghana?

The price of the complete registration and incorporation process varies from $600 to $800 depending on the size of your business. Furthermore, a business bank account must be opened for at least $1,000. If you open an account in your company's name and deposit the full $100,000, you'll also have to pay an extra $1,000 for the account and director expenses. In other words, a business bank account must be opened with at least $1,100.

Before you've even earned a dollar in profit, all this! The good news is that registering is a rather simple process, and you may get ready for it in advance with a measure of planning.

 

STEP 1: Business Name Search at the RGD.

You must first verify with the Registrar General's Department (RGD) to discover if the name of your company has already been registered by another party before you register your business. After the search, you can request to have your name kept for 30 days. However, be sure that the name of your company or business is memorable and conveys a lot about it.  The registrar is likely to reject your business name if it appears to be the same as the name of another registered business. As an illustration, if a business currently goes by the name Tera Company Limited, a name similar to Tera Company Limited cannot be registered.

The Ghana Registrar General Department would categorically refuse such a name because it is already in use. However, applicants will be instructed to change the name of their business. The selection or choice of a business name must be connected to business operations. As a result, the company name must not be offensive, vulgar, or infringe upon already registered trademarks.

 

Step 2: Get Taxpayer Identification Number (TIN).

To register your firm, the directors, secretary, and shareholders must do so and obtain a Taxpayer Identification Number. To complete the TIN forms, they must affix a copy of a photo ID, such as their driver's license, passport, or voter card. Taxpayer Identification Numbers are free and can be obtained at the Ghana Revenue Authority's office in as little as 24 to 48 hours.

It is crucial that you obtain TIN numbers if a corporate entity owns shares of your registered firm. In situations like this, your corporate organization will receive a TIN Form that will be properly filled out and have an accompanying letter of introduction.

If you choose to register more than one company entity or you serve as a director of numerous business organizations in Ghana, you must have a single TIN number for all of your registered enterprises.

Your Name and Your Occupation are among the details required for each TIN form. Other details include:

- Your photo ID

- The maiden name of your mother

- The address you use for mail or home

- Your contact information

 

Step 3: Complete Forms 3 and 4 of the Company Regulations.

The applicable Application Forms, which serve as the Company's Regulations, must be completed by all Limited Liability corporations. A non-officer, non-employee, non-partner auditor who is a member of the Institute of Chartered Accountants is a requirement for every corporation. A Certificate of Incorporation and a Certificate to Commence Business are granted if all such forms have been completed correctly and the necessary fees have been paid.

The names and contact information of your directors, secretary, and shareholders should be included. These specifics ought to include their country, birthdate, line of work, and home address.

All corporations must have at least two directors and a secretary in order to register their firm, according to the Corporations Act 179.  Additionally, at least one director of the corporation needs to be a citizen of Ghana.

The directors, secretary, and shareholders must first complete the forms and then add their signatures to the appropriate pages before submitting them.

A minor registration fee and a signed declaration that you are establishing a legitimate business in Ghana are required for this initial stage. Along with this, you must also submit a list of all the company's owners, along with copies of their national identification cards.

 

Step 4: Paying stamp duty, incorporation, and filing costs.

Stamp duty, incorporation, and filing fees are the main statutory fees that must be paid to the Registrar General's Department for the registration of your company.

 

Stamp duties

0.5 percent of the declared capital is used to compute the stamp duty. Consider a 150,000 Ghana Cedi capital, which translates to 750 Ghana Cedis at a 0.5% stamp duty multiplied by the capital's value. All limited liability corporations with 100 percent Ghanaian ownership must have 750 Cedis in reported capital as a minimum.

But combined foreign ownership companies with 100 percent foreign ownership have differing stated capital needs. The stated capitals for businesses in this category are:

- Completely foreign ownership: US$500,000

- A joint venture between a foreigner and a Ghanaian: US$200,000

- Trading business (whether owned jointly or 100%: US$ 1,000,000

 

Filing and Incorporation Fees

The incorporation and filing fees are another fee that must be paid at the time business registration forms are submitted. At the RGD, cash payments in the amount of 330 Ghana Cedis are accepted.

 

STEP 5: Collection of Business Registration Certificates.

The process will take about 2 weeks to complete after you submit your forms.  Following the process, the following documents will be produced:

- Commencement certificate

- Certificate of incorporation

- Forms 3 and 4

- Your Company's policies

The documentation you will submit will comprise, among other things, the company name, your business's operations, its address, the names of its directors, its tax identification number, and the names of its shareholders. This is done to prove a business's presence in Ghana. You can register a corporate account with Ghanaian banks or utilize your business certificates for any commercial transaction.

 

Step 6: Create an Account with the Center (GIPC)

All Ghanaian businesses must be registered with the GIPC. Investor Registration Forms (Form GIPC/R1) must be completed in triplicate by investors as part of the application process. The GIPC will formally register the investment within five (5) days of the date of orderly receipt of these forms (and their attachments). The appropriate GIPC fees and charges are listed below (effective as of September 1, 2014).

 

Step 7: Create a Bank Account.

You can open a business bank account with the Ghana Commercial Bank once your company has been registered. The GBA has given sole approval to this bank to manage business-related financial transactions.

To open an account, you must provide a signed declaration that you are starting a genuine business in Ghana, along with a passport-sized photo and copies of your company's incorporation documents.

 

Annual General Meetings

In accordance with Section 149 of the Companies Act, it is required of every company to hold an annual general meeting apart from any other meetings that such a company might hold each year and which must be clearly stated as the annual general meeting in the notices calling them. The interval between the dates of each annual general meeting shall not be greater than fifteen months unless otherwise provided in subsection (3) of this section.

Your company's first annual general meeting can happen up to 18 months after incorporation without having to be held in the year of incorporation or the year after.

All businesses that are limited by shares, limited by guarantee, partnerships, and/or have unlimited liability, pay a fee of £50 for yearly returns. A 350 penalty will be assessed for failure to do so.

Conversely, sole proprietors and external businesses are charged a $25 and a $600 yearly returns cost, respectively. An external company that fails to submit its yearly returns will be subject to a $750 fine.

 

Conditions for Submitting Annual Returns

- A yearly fully audited financial statement of the company

- At the company's annual general meeting, the financial statement must have the Directors' approval and be signed.

- Fee of ¢50

- Submitting annual returns for the business

- According to section 122 of the Firms Act of 1963, all registered firms must submit annual returns every year after 18 months of incorporation.

- Modifications made after the Company's registration

After the company is registered, the shareholders may decide to make changes such as changing the company name, the address for the business, the directors, share transfers, activities, increases in stated capital, etc. The Registrar General Department is the only place to make changes.

 

Conclusion

To summarize, registering your firm doesn't have to overwhelm you. It's fairly easy to register with the Registrar General's Department. The Registrar does, however, frequently question registration forms because they contain inaccurate or insufficient information.

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