How to Register a Sole Proprietorship in Ghana (2023)

If you plan to start a business of your own in Ghana, especially a small business, it is important that you know how to register a sole proprietorship in Ghana. Several people roam the streets of Ghana unemployed. As a result, many have turned to set up small businesses to provide sustainable income for them and their households.

The procedure for registering a sole proprietorship in Ghana is a very short and simple process. To register you need to have a valid identification card. After the sole proprietorship is registered, you will be given a certificate that confirms your registration. The simplicity of the process is probably the reason why there are so many small businesses in Ghana.

How to Register a Sole Proprietorship in Ghana

Registering a sole proprietorship in Ghana

A business owned and run by a single individual is known as a sole proprietorship. The kind of business you want to begin will determine whether or not you will take on a sole proprietorship registration or not. Once a person is registered as the sole proprietor, it means that the individual is the owner of the business and the idea itself.

This means that the individual bears all the liabilities and risk while enjoying the profit and assets of the business. It is imperative that the business is properly registered before commencing business operations. This is why you must understand the process and follow it through and through.

You will also need to have a TIN number to operate a business at this level. TIN is an acronym which stands for Tax Identification Number. If you don’t have one, this is the procedure for getting it in Ghana.

Access the official website of the Ghana Revenue Authority to download the sole proprietorship form.
Fill in the appropriate details and submit it to any of a VAT and income tax office of one of the offices of the Registrar General.
This practically completes the process and you will be issued a TIN number shortly after the submission.

The following are the requirements for getting a Tax Identification Number in Ghana. You need to present the following documents:

A copy of a valid national identification card.
A letter showing evidence of business registration.
A valid driver’s license.
A passport size photo.

The certificate should be issued within a week after the submission of required documents.

Registering your business name

This is the first step to take when registering a sole proprietorship. You should discuss with experts on the best name to choose. Here’s a simple tip. Choose a name that attracts and properly describes what you do.

It may be a bit difficult to formulate a name so you should seek help from others. You should also consider designing a log for your business. Your logo should be able to tell the story of what you do in the most subtle manner at first glance.

Follow these steps to register your business name:

Pay the fee for the registration form A and fill in your details. The form can be picked from the general department office.
Submit the form along with the processing fees to the office of the registrar general via the prescribed bank.
A certified true copy, as well as a registration certificate, is issued after the registration is complete.

These are the required information for the registration process:

Principal business location
The business name
The nature of the business
Full name of the proprietor, address, nationality, as well as other important details.

There are a couple of charges related to the process, they include:

Business name registration – 50 Cedis
A certified true copy – 10 Cedis
Form D – 25 Cedis

These forms are to be completed before your sole proprietorship registration can be considered valid in Ghana. They are:

Registration form A
Re-Registration form A
Form D

Registration Form A

This form is the major document required for the registration of a sole proprietorship business in Ghana. The form is provided for by Act 151 of business registration in the Ghana constitution of 1962. It bears the following information:

Business name
Nature of the business (service, transport, manufacturing, commerce, etc.)
The principal activity of the business
Date of business commencement
Location of the business (region, city, street, and house or flat)
Personal details of the sole proprietor (first name, surname, middle name, gender, marital status, date of birth, and occupation)
Residential address of the sole proprietor

Re-Registration form A

Under the same Act 151 of the 1962 constitution, a sole proprietor is required to fill this form along with the Registration form A. The details embedded in the form include:

Old registration information. This includes old TIN, old business name, old registration number, old start date, and the current taxation office.
The nature of the business
The principal activity of the business
The principal location of the business
Personal information (as stated in Registration form A)
Residential Address of the business owner (as stated in Form A)
Postal Address

The last step of the registration process is the declaration. This involves attesting to the fact that all the information provided were correct and legal. The following documents must be attached on submission:

Copies of Registration Form A.
Copies of the Certificate of Registration.
Up to date renewed receipts.

Form D

This form is necessary when the sole proprietor or the business has changed particulars. It usually contains the following information:

TIN number
Business name of the applicant
Nature of the business in question
The date the change should be effected
Signature of the applicant

Sole proprietorship comes with several advantages and disadvantages. The major idea is that the sole proprietor enjoys the advantages and suffers the disadvantages on his own. This all there is to the registration of a sole proprietorship in Ghana. You can go ahead and register your business and enjoy great profits.