Ghana

Company Formation in Ghana

Ghana is a good destination to set up your company to cater to the fast growing African market with a large population. YourGlobalPro can assist in Ghana for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval, Trademark Registration and Citizenship Services.

About the Country

The Republic of Ghana (“Ghana”) a unitary presidential constitutional democracy, located along the Gulf of Guinea and Atlantic Ocean bordered by the Ivory Coast in the west, Burkina Faso in the north. it a regional power in West Africa due to rowing economic prosperity and democratic political system. The below content will explain you in detail about the requirements for the Company formation in Ghana, know more about the process of Trademark registration in Ghana and understand the Ghana Legal Compliance requirements.

Ghana

Doing Business Introduction

Ghana is having a conducive social, political and economic environment in which Investor can invest, grow and be successful. It allows investment in all the sectors. Ghana is one of the leading countries in Africa due to wealth, democratic political system and dynamic economy.

As per Doing business report of The World Bank –Ghana ranks 108 for 2017 survey. YourGlobalPro professionals are able to assist with any type of company formation in Ghana, trademark registration in Ghana and other recurring services for your business.

Incorporation - Types of Business Entities

There are different types of entities that can be incorporated in Ghana are as mentioned below:

·       Local company: a company limited by shares incorporated under the Ghana Companies Act, 1963 (Act 179) can be wholly or partly owned by a non-Ghanaian

·       External company: Also, known as a branch is a body corporate formed outside the Republic of Ghana having place of business in Ghana

Time Frame for Incorporation of Company in Ghana varies from depending on the type of entity selected. Each business type has its own advantages and disadvantages. YourGlobalPro estimate the time required for the process of Company formation in Ghana to be completed is 16-20 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Ghana:

·       Ongoing privatizations of the key economic sectors

·       Multi-party and Stable Government

·       Commitment to market liberalization and expanding stock market

·       Export free zones provides exemption from customs duties and laws

·       Developing infrastructure

·       labor force is competitive

·       Easy access to all markets of the Economic Community of West African States

Tax Registration and Filing

Ghana follows a unitary tax system, in which income from all sources is subject to tax and the tax year is the calendar year.

Corporate Income Tax Rate 25%
Capital Gains Tax Rate 25%
Branch Tax Rate 25%
Value-Added Tax (VAT) 15%
Withholding Tax Dividends - 8%
Interest - 8%
Royalties - 15%
Management and Technology Transfer Fees - 20%
Directorsu2019 Fees - 20%
Technical Service Fees - 20%
Branch Remittance Tax 10%
Annual Tax Returns Within 4 months after the end of their accounting year

Double Tax Treaty

Double Tax Agreements regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. Ghana has double taxation treaties with France, The United Kingdom, Belgium, Italy, Germany, South Africa, Switzerland and Netherlands.

Trademark registration

For trademark registration in Ghana the application needs to be made to Trademark Office. It takes approximately 15-20 working days timeframe to complete the process of trade mark registration in Ghana. In Ghana, a trademark Registration is valid for 10 years from the application and can be renewed for further 10 years before expiration date and during the grace period of six (6) months after expiration.

YourGlobalPro is fully equipped to assist you with the process of trade mark registration in Ghana for your business. For assistance or advice in the matter of the trade mark registration or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Certificates of incorporation and commencement of business needs to be obtained at the time of registration of the Company.

·       All companies Must have registered office

·       All directors and the secretary required to register for a tax identification number (TIN) before company formation in Ghana

·       5% stamp duty is applicable on the stated capital of the Company

·       The Companies in Ghana are required to be registered with other regulatory bodies after incorporation based on the Industry of operation.

Accounting Services

In Ghana, all listed companies, banks and insurance firms are required to apply International Financial Reporting Standards in the preparation of their financial statements. The Companies Code, 1963 (Act 179) requires all companies to mandatorily keep proper books of accounts. Records are to be maintained for 3 years. Accounting is to be done on accrual basis.

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Ghana Business Set up as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

The Company law requires statutory audits for every company and further states that the directors must ensure preparation of Financial Statement, a report by the Directors and Auditor report and copy to be sent each shareholder and debenture holder within 18 month of Incorporation and 15 month every calendar year.

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals provide auditing services for your business as required by your business.

Banking

Bank of Ghana is the Central bank regulatory bodies for licensing and regulating Banking and Insurance Companies. It is very simple process to open Bank Account in Ghana. The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening. All banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals can facilitate all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Ghana.

Legal and Compliance

Below are the various Ghana Legal and Compliance requirements to be followed by incorporated entities:

·       All companies incorporated in Ghana carrying on business in Ghana are required to register with the Ghana Revenue Authority for tax related matter.

·       All companies in which there is foreign participation are required to register with Ghana Investment Promotion Centre (GIPC) – except operating in the mining and petroleum industry

·       Ghana Free Zones Board (GFZB) approval license needs to be obtained by companies operating in industries other than mining, petroleum and timber

·       Registration with Minerals Commission (MC) required by all companies operating in mining and mine support service sector

·       The Companies operating in upstream oil and gas sector, whether contractors or subcontractor are required to register with Petroleum Commission (PC)

·       Registration with National Communication Authority (NCA) required to be obtained by the Companies e importing telecommunication equipment like servers, cellular phones, fax machines, cordless phones and radio equipment’s.

YourGlobalPro will assist you with Ghana Legal and compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Ghana:

·       All the Companies are required to register with Social Security and National Insurance Trust (SSNIT) and make social security contributions in respect of its employees.

·       Automatic Immigration Quota (AIQ) granted by the Ghana Investment Promotion Centre (GIPC) allows a foreigner to work in Ghana.

·       Depending on the type of Industry work permit need to be obtained from can be obtained from either the GIPC in the form of an AIQ or the Ghana Immigration Service (GIS)/ Ministry of Interior (MoI).

·       contract of employment should be provided in writing for workers employed for six months or longer periods

·       Employee entitled for least 15 working days fully paid annual leave and paid Festival (public and religious) holidays.

·       Entitled to forty-eight consecutive hours (2 days) of rest per week

·       minimum wage rate [7 GH¢ per day] applies to all of Ghana except the free trade zones

A notice of termination of contract of employment shall be in writing

Country Statistics

Capital Accra
Total Area 238,535 Sq. Km.
Population 27,043,093
Density 101.5 / Sq. Km.
Currency Ghana Cedi (GHS)
Government Unitary Presidential Constitutional Republic
Official Language Asante Twi, Dagaare, Dagbani, Dangme, Ewe, Ga, Gonja, Kasem, Fante, Akuapem Twi, Nzema, Wasa, Talensi, Frafra
Religion Christian: 71.2%
Muslim: 17.6%
Traditional: 5.2%
None: 5.2%
Other: 0.8%
Business Offices Hours Monday to Saturday - 8 am to 5 pm (maximum hours of work per week are 40)
Banks and Exchange Houses Hours Mon-Fri (8:30 am to 5:00 pm) Sat (9:00 am to 2:00 pm)

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