of Business Names Act, 1962 (Act 151). Businesses registered as sole proprietorships are not required to file annual returns with the Registrar General’s Department. • Incorporated Partnership This structure is mostly used where two or more people (up to a maximum of 20) go into business together for the purpose of making profit. Under this structure, each partner is responsible for the actions of the other and is jointly and severally liable, with the other partners, for the activities of the partnership. Therefore there is no limit to the liability of any one partner, and all the personal assets of each partner may be utilized in the settlement of liabilities of each individual partner This corporate set up is primarily used for not-for-profit purposes. The members act as guarantors and their liability is limited to the amount they each guarantee. The objects of the company are restricted by law and shall not include activities for the generation of profits. This type of company is exempt from corporate tax; however, each employee is subject to income tax on their individual earnings. Incorporation Procedure 1 The following table summarizes the general procedure and timelines for the incorporation of a business entity. incurred in the course of business. • Company Limited by Guarantee
4 A Commissioner of Oaths authenticates the forms required for certificate to commence business
One (1) day
USD 3
5 Obtain copies of incorporation documents
Five (5) days No charge
including Certificate of Incorporation, Certificate to Commence Business and certified Regulations of the company
6 Deposit paid-in capital in an account at a bank 7 Apply for business licences at the Metropolitan Authority
One (1) day
No charge
Seven (7) days
Varied cost depending on the type of business and relevant business category
8 Inspection of
One (1) day
No charge
work premises by the Metropolitan Authority
9 Apply for social security
One (1) day
No charge
Investment Promotion and Incentives The Ghana Investment Promotion Centre ( GIPC ) is the government agency responsible for encouraging and promoting investments in Ghana, as well as providing for the creation of an attractive incentive framework for GIPC registered companies. The legislation which established the GIPC has very broad coverage for both Ghanaian and non-Ghanaian enterprises and requires all entities with foreign participation regardless of capital, or ownership structure, to register with the GIPC. The legislation regulates investments in all sectors of the economy but specifies certain economic activities that are reserved solely for indigenous persons. Registration with the GIPC is mandatory for all enterprises with foreign participation and is renewable every two (2) years. An enterprise cannot register under the GIPC unless it is a body corporate registered under the laws of Ghana. To invest in Ghana, an enterprise with foreign participation must meet a minimum capital requirement contributed by the non- Ghanaian participant. For a joint venture with a Ghanaian, the Ghanaian must hold at east 10% equity stake, and the non-citizen must invest a minimum of USD 200,000
Item
Time
Approximate cost
1 Acquire a Tax
Two (2) days No Charge
Identification Number
2 Check for availability of company name
One (1) day USD 16 (This includes name search and name reservation) One (1) day USD 82 (This includes cost of complete set of incorporation forms, registration fees and certification of regulations)
3 Submit complete set of company documents to obtain a certificate
of incorporation and certificate to commence business Obtain a Certificate to Commence Business
Two days
0.5% tax of the stated capital as commencement tax and USD 2.50 registration fee
Deposit paid-in capital in an account at a bank
One day
No charge
1 Cost and timeframe are based on typical experiences for the incorporation of limited liability companies. These will vary depending on the specifics of each incorporation and may not be relevant for highly regulated sectors.
Africa Investment Guide | 33
Made with FlippingBook Online newsletter