The legal registration of the company entity at the Registrar General’s Department is the first step in launching a business in Ghana (RGD). Under Ghanaian law, several types of business entities can be registered, thus it’s critical to pick the correct legal structure for your company. Companies Limited by Shares, Companies Limited by Guarantee, Companies with Unlimited Liability, External Companies, Sole Proprietorship, and Partnership are the many types of company registration available under Ghanaian law.
The business registration has become very simple because of the Registrar General’s Department’s (RGD) automation. All business registration forms can be downloaded from the Registrar General’s Department’s official website or picked up at the RGD for GHS 50.00. The steps for registering a corporation in Ghana are as follows:
Pick a company name
At the Registrar General’s Department, conduct a name availability search and reservation). This usually takes one to five days. The name is only reserved for 30 days. A business limited by shares must have a name that finishes with either “Limited” or “Ltd.” unless special permission has been requested. The RGD will consider it misleading if you use the word “corporation” in your company name because it is reserved for government-owned businesses. The RGD has the authority to reject names that are too similar to current names, deceptive, offensive, unattractive, or infringe on existing trademarks or business marks. Alternative firm names should be submitted. Be innovative with the company names to avoid them from being discarded by the RGD.
Obtain all executives’ tax identification numbers.
In Ghana, all business leaders, including shareholders, directors, partners, managers, company secretaries, auditors, council members, and sole proprietors, must first register with the Ghana Revenue Authority to get a Tax Identification Number (TIN) (GRA). It usually takes 1-3 days to finish. It is entirely free to obtain. Applicants must fill out TIN forms and attach a photo ID which could be your voter’s ID, driver’s license, etc. You can also request authorization to use another form of identification from the RGD’s registrar. Corporate companies can also obtain TIN numbers. When the shares of the company being registered are held by a corporate body, this situation arises. In this case, the corporate entity will receive a TIN Form for Organizations and fill it out, along with a letter of introduction. Following that, a TIN will be created for the corporate shareholder. If you decide to establish more than one company entity or serve as a director on many business organizations, you must have one TIN for all of your registered firms.
Complete your RGD paperwork.
Applicants would have to fill out two forms, Form 3 and Form 4, as well as the requirements. Form 3 (Return of Particulars of a Company Limited by Shares) must be filled out with information about the company’s directors, secretary, and auditor (name, age, nationality, occupation, postal and physical addresses), as well as the company’s physical and postal registered address, contact information, and the company’s objects. You’ll only need to fill out Form 4 with the director’s and company secretary’s information. The company’s regulations must be disclosed, together with the number of shares it is registered with, the names of its shareholders, and the shareholding proportions between its members. You can either employ a Ghanaian lawyer to design the regulations for you or use the RGD’s standard regulations for free. A business limited by shares must have at least GHS 500 in stated capital.
Pay your capital duty and filing expenses.
All of the earlier stated forms are completed and signed before being submitted to the RGD for filing fees and capital duty payment. In Ghana, capital duty is calculated at 0.5 percent of the company’s reported capital.
Register with the RGD.
After payment of the filing fees and capital duty, the documents are reviewed and filed with the RGD. Expect to receive your original certificate of incorporation, certificate to commence business, and certified true copies of forms 3, and 4, and the regulations, in a few weeks if there are no objections. In some cases, the certificate to commence business may not be issued; this is where the company must obtain a specific business permit before the business begins.
