There are six types of companies registered in Ghana. To know the types of company registration in Ghana one needs to be aware of the types of entities that exist in Ghana.
Ghana is ranked 114 among 190 economies of the world when it comes to the ease of doing business, “the world's fastest-growing economy” in Africa was used to describe the country’s growth in 2019; since Ghana has radically turned around her economic situation in just three decades.
So, if you are looking to start a business in Ghana use Bizaccess consult. Bizaccesis a Corporate Secretarial Services & Consultancy Firm specialising in providing Business Regulatory Compliance Support in Ghana.
A sole proprietorship is a business entity that is unincorporated and usually owned and run by a single individual, registering a sole-proprietorship is more convenient and less costly as compared to other forms of business. Like said a sole proprietor is run by an individual in his/her legal name, the individual pays taxes on the personal income they earn and is liable for debts incurred in the business. Find more information here
This means that you work for yourself and are not employed by other businesses like a carpenter, online traders (someone who buys and or sells merchandise online) even a person who runs a small retail shop (like a supermarket or a retail kiosk.
This is self-employed or contracted to perform work for or to provide some kind of services to another entity.
They can take the form of a sole proprietorship that is if the franchisee pays a fee to the franchisor in exchange for the right to use the company’s brand. Famous companies like McDonald’s and (KFC) Kentucky Fried Chicken use franchising. With franchising, the main larger company sells to individuals the right to open a branch of their company. A franchise can be great for a relatively new sole proprietor who has little business experience; this is because the franchisor will provide for the franchise business marketing and organizational support and a business model.
Register your sole-proprietorship business in Ghana at the Registrar General’s department office in Accra or online.
READ ALSO: How To Register A Business In Ghana
It is simply an association between two or more individuals or companies, who have joined forces to make a profit. This can be done when a business wants to share liability for a company investment without the stringent requirements associated with incorporating a company. In this business structure, each partner contributes equally to run the business and are individually responsible for the profits and losses of the company. Read more
In Ghana to register a partnership, you will need a copy of a signed partnership agreement and a statement, certain particulars like the name of your partnership, the nature of your business, the data of commencement of your business, and all other places the business exists which will be submitted to the registrar general’s department. Under Ghana's law partnerships must be incorporated under the incorporated private partnerships Act, 1962 (Act 152).
Interested persons who need to register their partnership business in Ghana can do it at the Registrar General’s department office in Accra or online.
Referred to as the gateway of Africa, Ghana has a democratic, dynamic economy with a large supply of natural resources and a fast-growing middle-class economy, with English as a trade language. For more information check the Ministry of Trade and Industry here
An external company exists outside the jurisdiction of Ghana. Businesses that engage in such transactions are owned by a company interested in branching out to have their businesses outside their local. Organizations of such nature are supposed to communicate with other organizations or persons to attain their aims. Read more
Register your external company at the Ghana Registrar General’s department office in Accra or online. Individuals registering an external company in Ghana may include investors, current or potential customers, shareholders, society, government organizations or other business units, etc. The local manager (Ghana) of an external company is required to be a citizen of the country.
Yes. According to Companies Code 1963 (Act 179) set up by the Ghanaian government, foreigners can start and establish their businesses in Ghana. But one of the directors of the company must be a resident of the country.
In this type of company, the liabilities of the shareholders for debt requirements in the company is unlimited. The main question comes down to who is liable for the business debt if it fails?. There is no difference between the owner and the business, so the owners are the business which makes them liable/ legally responsible for the losses. It is usually registered by professional bodies such as auditing, law firms, architectural firms. In an unlimited liability company, it is the legal duty of the business owners to repay in full the debt and other financial obligations of their company.
Register your company unlimited by liability in Ghana here, or at the Registrar General’s department office in Accra.
The exact opposite of a company Unlimited by liability is the Limited liability company which has the advantage which protects the owner from incurring debt if the company turns belly-up. Limited liability businesses allow the company were or owners to benefit without personal liabilities, the company owners have limited financial liability in the company; which means they are only required to cover business debts up to the amount they invest or agree to pay if the company runs into financial difficulty. Read more.
The type of limited liability company is based on the structure of who is responsible for the company, basically who is liable for the business. Some basic types include:
This type of company is a private limited company that does not have shares but has guarantors who agree to pay a set amount of money towards company debts. The guarantors paid the amounts of set money or respectfully contributed to the assets of the company in case of liquidation. In the event where the company goes bankrupt, the directors are not personally liable for the depth enquired, this means that the liability of the directors is limited. Find more information here.
Profits earned from this type of company are not shared among the guarantors but reinvested back into the company to continue doing what it was set up to do. It works just like a non-profit or church work so no initial funds are needed and the funds they collect should be those funds are obtained from other sources, e.g., endowments and donations This company is not authorized to trade but it does have a legal identity so the members or employees of the organization can get paid/ earn a salary.
You can register companies limited by guarantee in Ghana's at the Ghana Registrar General’s department office in Accra or online.
A private limited company also referred to as LTD and may appear after a company name and is a type of business that is privately owned. Owners of this company or business are referred to as shareholders, not just anyone can buy into the company to become a shareholder, you would have to be invited in. It limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares.
With the types of company registration in Ghana, this type has shareholders; these shareholders own a share in the company. They own a piece of the company so when that company or business makes profits they are paid dividends. The business is designed for profit-making and to make the shareholders rich. Find more information here
A company limited by shares is incorporated with shares capital, so it can not offer its shares to the public. Such a company can either be public or private.
Registered at the Registrar General's Department, this type of company demands two individuals representing the company during the registration acting as the directors of the company and the other acting as the shareholder. Register companies limited by share in Ghana at the Ghana Registrar General’s department office in Accra or online.
The answer to this question is relative, because of the varying needs of people in this age. It is advisable to look at the business trends in a country before jumping into a business opportunity head first.
An unlimited company is quite similar to the company limited by liability but the legal liability of the shareholders is not limited, in the sense that the shareholders have many non-limited duties to meet any sufficiency in the assets of the company to enable settlement of any outstanding debt in the event of the company’s liquidation. Find more information here
Company limited by liability in Ghana is registered at the Registrar General's Department; it requires two individuals representing the company during the registration acting as the directors of the company and the other acting as the shareholder. Register companies unlimited by share in Ghana at the Ghana Registrar General’s department office in Accra or online
The Registrar General’s department of Ghana registers six types of businesses namely:
Starting a business can be exciting and to be honest quite stressful. So let Bizaccess help you through the types of company registration in Ghana and make this stressful over-complicated process a little bit more uncomplicated. BIZACCESS is a Corporate Secretarial Services & Consultancy Firm specialising in providing Business Regulatory Compliance Support in Ghana. In an attempt to serve our growing customer base and international clients, we launched this platform to conveniently and remotely serve our customers in regards to registering a business in Ghana.