If you plan to start a business in Africa, Ghana is a good choice for registering your company. The Manimama Law Firm has conducted in-depth research, analyzed the main subtleties of incorporating in Ghana, and is ready to share its results and help you choose the right jurisdiction.

What are the main advantages of incorporating a company (business) in Ghana?

1. Promising Location

Ghana is strategically positioned along the West African coast, providing access to a regional market of over 350 million consumers. As a member of ECOWAS and a participant in the African Continental Free Trade Area (AfCFTA), companies registered in Ghana enjoy trade advantages across the continent.

2. Stable Political Environment and Sound Legal System

Ghana is one of Africa’s most stable democracies, with a well-structured legal framework and an investor-friendly climate. The government actively supports the private sector, ensuring a level playing field for local and foreign businesses.

3. Developed Transport and Energy Infrastructure

Ghana boasts a strong logistics network, including international airports and major seaports in Tema and Takoradi. Highways connect key regions, facilitating the efficient distribution of goods. At the same time, the country is enhancing energy reliability, which is critical for the manufacturing sector.

4. Skilled Workers

Ghana’s population is well-educated and proficient in English, the official language. With a growing focus on higher education and technical training, companies benefit from a talented labor pool in fields such as technology, finance, engineering, and customer service.

How to register a company in Ghana and what are the main requirements for such registration?

Step 1. Initial setup

• Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
• Preparation and filing of the package of documents.

Step 2. Company registration

• Verificate and reserve of the company name;
• Each must submit a Statutory Declaration & Consent Letter with the registration Form. The Secretary must also submit a consent letter;
• Submit completed forms at the Company Registration Counter for Verification and Capturing or submit application Online;
• Obtain the Certificate of incorporation from the Registrar of Companies, Memorandum and Articles of Association;
• Open a corporate bank account.

Requirements for registering a company in the Ghana on the example of a Limited Liability Company (LLC):

• Shareholders: the company is required to have at least 1 shareholder. Both local and foreign individuals or entities can act as shareholders.
• Director: two directors must be appointed, one of the directors must be ordinarily resident in Ghana
• Company secretary: it is mandatory.
• Minimum share capital: there is no minimum capital requirement for locally owned companies; for foreign-owned companies, the minimum stated capital is $500,000 USD for wholly foreign-owned entities.
• Legal address: a registered office in Ghana is mandatory and must be provided during the registration process.
• Registered agent: appointment of a local registered agent, who must be a management company, is compulsory. This agent maintains and stores all company documentation.
• Liability: the liability of its shareholders is limited to the amount of capital they have invested in the company through their shares.
• Accounting: companies are required to maintain proper financial records and prepare annual accounts. Annual filings and tax compliance with the Ghana Revenue Authority (GRA) are mandatory.

What do you have to know about taxes when registering a company in the Ghana:

Corporate income tax (CIT):

• The general corporate income tax (CIT) rate is 25%.
• Mining and upstream petroleum companies pay CIT at a rate of 35%, while companies principally engaged in the hotel industry pay a reduced rate of 22%.
• The CIT rate for companies engaged in non-traditional exports is 8%, while banks lending to the agricultural and leasing sectors pay a CIT rate of 20% on income from those businesses. Lottery operators are also subject to a 20% income tax on gross gaming revenue.

Personal income tax (PIT):

Residents are subject to tax at rates ranging between 0% and 35% on the following annual graduated scale of income:

• 0% – up to 5,880 GHS;
• 5% – next 1,320 GHS;
• 10% – next 1,560 GHS;
• 17,5% – next 38,000 GHS;
• 25% – next 192,000 GHS;
• 30% – next 366,240 GHS;
• 35% – Exceeding 600,000 GHS.

Non-residents pay taxes at the flat rate of 25%.

Value-added tax (VAT):

• The standard VAT rate is 15%.
• However, supplies of a retailer of goods whose annual turnover is at least GHS 200,000 but does not exceed GHS 500,000 are taxed at a flat rate of 3%.
• A flat rate of 5% is also applicable on the taxable supply of immovable property by a taxable person: for rental purposes other than for accommodation in a dwelling or in a commercial rental establishment, or who is an estate developer.

For readers 

Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Ghana. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions. 

By choosing our company formation service in Ghana, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Ghana and pave the way for your business success!

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.