Have you ever wondered how foreign companies are able to operate in Ghana? In this short write up, we discuss how a foreign company can be registered in Ghana.
For a foreign company (the "Company") to begin operating in Ghana, it must be registered with relevant statutory bodies or agencies such as the Office of the Registrar of Companies ("ORC") and the Ghana Investment Promotion Centre ("GIPC").
First of all, the Company must find out whether its intended business name is available at the ORC. Once the proposed name is available, the Company must complete the relevant forms indicating at least two directors who meet the qualifications set out by the Companies Act 2019 ("Act 992"), a qualified auditor, a qualified Company Secretary, and a Tax Identification Number ("TIN"). After filing the relevant forms, paying the relevant fees, and approval from ORC, certificates will be issued to the Company.
Furthermore, the Company is mandated to register its business with GIPC. Upon satisfying the requirements, GIPC will then issue a certificate to the Company.
It is important to note that the Company can be set up to be wholly owned by a foreign investor or through a joint venture with a Ghanaian individual or company. In instances where there is a joint venture, the Ghanaian partner must have a minimum of least 10% stake or share in the Company.
Additionally, it is worth pointing out that the Company must comply with the minimum equity requirements (which can be either in cash or in goods or a combination of both) as follows:
a. For a wholly owned foreign company in the trading industry, the minimum required investment is One Million Dollars ($1,000,000.00);
b For a Joint Venture with a Ghanaian partner having not less than 10% equity participation, the minimum required investment is Two Hundred Thousand United States dollars ($200,000.00) in the services industry; and
c. For a wholly owned foreign company in the services industry, the minimum required investment is Five Hundred Thousand United States dollars ($500,000.00).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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