Introduction to Ghana Company Formation
Ghana’s multinational state is also a unitary presidential constitutional republic. It is in West Africa’s sub-region, with plenty of resources, a competitive economy, and a democratic political system. Therefore, Ghana company formation will be a good idea. Ghana has gained the confidence of other countries when it comes to political transition and a grounded commitment to democracy. That is why Ghana has attracted many foreign investors in the past years. Many international businesses have become interested in making investments in Ghana.
What To Do for Ghana Company Formation
If you want to set up a business in Ghana, here’s what must do:
- People who start a business in Ghana are obligated to follow the laws and regulations based on the Companies Code 1963 (Act 179). Under this code, investors regardless if it is foreign or local could establish and register a business in Ghana.
- Ghana’s government has made laws clear for the purpose of attracting direct foreign investment. It also requires a legal environment that encourages foreign investments, and then it replaces some that stifle it. This is the Ghana Investment Promotion Center (GIPC) Act, 1994 (Act 478). Today, investors can easily set up investment projects in different sectors of Ghana’s economy without being approved by the GIPC except in certain industries. These industries are petroleum, mining, and free zones. Also, the ones under portfolio investments under Ghana’s company act.
- Investments that are in the mining petroleum sectors gets approval from the Minerals Commission and the Ministry of Mines and Energy in Ghana. The Ghana Free Zones Board gives its approval to Free Zones’ investment and portfolio, which are handled by the Ghana Stock Exchange.
- Sectors such as banking, insurance, fishing, non-banking financial institutions, securities, and real estate are regulated by certain laws. The most significant thing is that the government realizes that foreign investors need to satisfy the investment act provisions. They also must meet provisions of sector-specific laws.
Ghana Company Formation Steps
- Investors must register a business under the Register General. After doing so, the investor is given incorporation documents as business registration verification.
- There is a minimum investment a bank requires, and a bank account must be set up. This is to facilitate foreign investment transfer and transactions of future businesses.
- Where the capital is introduced by importing machinery or equipment that covers imports must have the registered company’s name. It must then be submitted to the GIPC to serve as evidence.
- Since the capital is declared as cash instead of transferred, it must be done upon arrival. The Bank of Ghana Form T5 must be used for this. In addition, it must then be deposited to a local bank as soon as possible. The transaction must get a confirmation from the investor’s bank and the Bank of Ghana.
- GIPC requires the registration
- Registration is done with the Value Added Tax Secretariat and Internal Revenue Service is required.
- Depending on where the investment is made, the investor must register with oversight agencies. Assistance by the Ghana Investment Promotion must only be given directly or indirectly through referral. This is given to accredited public agencies or legal firms and accounting during this process.
- Enterprises that want to engage in manufacturing must get a permit from the Environmental Protection Agency (EPA) and register with them as well.
3E Accounting will help you in the process. We are professionals that can help you set up a business in Ghana without any hassles or complications. Contact us today!