The Ghana economy is making waves. The Ghana Government is doing the much they can to make it easier for both its citizens and foreigners to begin a business by ensuring easy business startup. This will even help speed up the growth of the country economy.
The Ghana government hope that most if not all of the youth in the country would be creative enough to come up with business ideas that would help support and promote the economy of the country. Foreign investors are not excluded. The entrepreneurs, both beginners and experienced are striving hard to grab these opportunities provided by the Ghana government to grow their business and create more wealth for themselves. Ghana has so many untapped business opportunities for entrepreneurs, all you need is the right resources and knowledge which will be provided to you in this article.
Listed below are some useful tips to help guide you on how to start a business in Ghana.
How To Start A Business In Ghana: Step By Step Guide
STEP 1: Get your Tax Identification Number (TIN)
Before you proceed with your company registration you need to get the Tax Identification Number. This is very essential. The TIN form is obtained for free and the number is made available within two days on average. You obtain the form either from the Registrar-Generals Department or the Ghana Revenue Authority. The form is obtained with your Identity card.
STEP 2: Check if your company name is available and submit company documents to obtain the certificate of incorporation
Form A can be picked up from the in-house bank. Filled forms can be submitted at the bank. The Registrar after examining the form issues business registration certificate as well as a certified true copy of the form to be submitted as an attachment.
The following information is required on the form :
- Name of your company
- The kind of business that you intend to engage in
- Your Full names, your shareholders’ names, their addresses, their percentage shareholdings, their occupation, and any directorships in any other company
- The Full names of the first directors of your company. A company must have a minimum of 2 directors and at least one director must be a Ghana resident, must be of sound mind and of legal age which is not younger than 21.
- Your company secretary and auditors Full name and address
- The company number of shares that is to be registered with and the stated capital
- An attestation that the minimum nominal capital complies with the requirement that from a company 100% ownership, Ghanaian owned minimum nominal capital of at least GHC 500.
A form is filled at the Registrar General’s Department For tax purposes. After filling the form, Ghana Revenue Authority officials will assist in the generation of a Tax Identification Number for both the company and all the employees of the company to be registered.
You obtain your tax identification number (certificate) from the Registrar General’s Department on behalf of the incorporated company. The company regulations, Four or five copies and Forms 3 and 4 are required.
Note: The auditors, banks, solicitors, company secretaries may require a copy.
at the moment of document submission, A letter from an auditing firm must also be presented
STEP 3: The forms required for the certificate to start a business is validated by the Commissioner for Oaths
The Commissioner for Oaths, who is in charge of administering oat, usually swears the oath within a day to enable the company to acquire the certificate to start a business. The Registrar of Companies automatically registers new companies with the Internal Revenue Service (IRS).
STEP 4: Deposit paid in capital in an account
In other for you to deposit paid in capital in a bank account, you must present copies of these documents listed below:
- Company regulations
- Certificate of incorporation
- Certificate to commence business
- Signatures of the authorized company representatives
STEP 5: Apply for your business licenses at the Metropolitan Authority
The business license which is also known as the Business Operating Permit (BOP) is the permit that would give the business owner the permission to start a business. It is important to obtain the license before running the business.failure to obtain the permit before starting the business would result in some issues with the metropolitan authorities. The type of business and the category it falls into will determine the cost to apply for a BOP at the Metropolitan Authorities. Documents to be submitted depending on the type of enterprise.
STEP 6: The Metropolitan Authority Inspects the work premises
the Metropolitan Assembly will allocate an officer to visit the business premises and report back the officer who in turn submits the report gotten to the sub-committee of the revenue mobilization of the Metropolitan Assembly. There will be meeting to deliberate on the report given by the officer and then they will recommend to the Executive Committee of the Metropolitan Authority if any adjustment is required.
STEP 7: Apply for social security
It is very imperative that all business owners should register themselves and their employees with the Social Security and National Investment Trust (SSNIT) to make contributions towards their retirement. To apply for social security, the company must attach the list of employees, how much they earn and their social security numbers, the company’s certificate of incorporation and certificate to commence business.
STEP 8: Business registration
The Companies Code 1963 (Act 179) is the law that regulates the formation of companies in Ghana. This, brought about the passing of laws to encourage foreign investments and replace old ones. One of such laws is the Ghana Investment Promotion Centre (GIPC).
Under Act 1994 (Act 478) investors are free to set up investment projects in all sectors of the country economy without asking for approval by the GIPC, but you get permission for the investment in mining and petroleum by the Commission and the Ministry of Mines and Energy gives approval for the Investments in the mining and petroleum sectors. The Free Zones are approved by the Ghana Free Zones Board investments. The portfolio investments are handled by Ghana Stock Exchange Foreign investors must meet the provisions of the investment act. And also the provisions of sector-specific laws.
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