Business Registration process in Ghana

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For any individual or group of individuals who want to register a new business or register an existing one, there are several business structured options each business structure has it's own legal and economic implications as well.

Sole proprietorship

Most of Ghana's business activities are owned by a sole proprietor. They usually deal in a wide range of productive and commercial activities, including agriculture, manufacturing, transportation, trade and other services. Many of these integrated businesses are operated by home or market stalls or mobile vendors.

In principle, every person in Ghana is free to engage in any type of legal business activity. Ghanaian law does not require the registration of a businessman or a class of businessmen. Commercial law is a part of the common law of the country, not the law of a particular class of persons. There is no particular company in the sole proprietorship rule; General commercial law principles apply. The conflict between ownership and management, which is a feature of agency law, does not arise and there is no need for special rules to protect creditors because the trader is fully responsible for his or her business.

Every person (and indeed, a company) can continue to do small business under their own name. This national name is known as a business name. This national name must be registered with the small business name registrar under the Business Name Registration Act, 1962 (Act 151). In reality, however, these activities have very little control.

The sole proprietorship business is the most common between micro and small enterprises in Ghana. The registration process for a sole proprietorship business is less complicated.

And less expensive than a company limited by shares or guarantees. The sole proprietor must register with the Registrar-General and complete 5 copies of Form A with the following details:

• Tax identification number (TIN)
• Name
• Date of birth (date, city, region, gender)
• Nationality
• Civil status
• The institutional name
• The general nature of business
• The entire address is the main place of business
• Everywhere else the business is conducted
• Business start date

Businesses must be started before registration is effective. Every proprietor is required under the Business Name Registration Act to renew their business registration once every year. Registration will not be required if the name uses only the real owner's name or the name of the only owner excluding his or her initials.

Partnership

A partnership is a system whereby two or more individuals combine some or all of their assets, skills or industry together to make a profit that will be shared by the partners. Forms of partnership are non-business partnerships, commercial partnerships, and limited partnerships.

Non-Trading Partnerships

It is primarily a partnership with companies of lawyers, chartered accountants, architects, and other professional practitioners.

Commercial or general partnerships

All partnerships are engaged in trade, manufacturing and other commercial activities.

Limited Partnerships

This is a special kind that is very rare. A limited partnership is made up of ordinary and limited partners. A limited partner is responsible for the amount of capital contributions to the firm or its creditors, but not more. According to the partnership agreement, he may be a partner in profit, but he must not be involved in the management of the business or he may be a general partner.

Partnership Agreement

It is customary for the partners to sign a signed contract relating to the purpose of the business, the name of the firm, the duration of the contract, the place of business, the capital paid by each partner, the profit-loss category, the book, etc. Partners' right to manage accounts and procedures for termination or reorganization of partnerships

How are Partnerships Included in Ghana?

A copy of the partnership agreement and a statement signed by all partners must be submitted to the Registrar General Department, along with the partner's name, nature of business, address of the origin of the business and all other locations, for registration of partnerships in Ghana where the business is running, the partners' names and addresses and occupations, starting Date and any required for registration Details of the charge.

Upon registration, the registrar issues a certificate of attachment that specifies the names of the partners and the fact that their liability is unlimited. Notice of registration has been issued in the Gazette. Registration of partnerships has to be renewed annually and running a business without registration is a crime. The rights arising from a contract during the period of unauthorized operations are effective against the partner but not by the partnership with the other party.

Advantage of Partnerships

• Partnerships are a simple, flexible and inexpensive form of business organization.
• It is not subject to corporate tax and is exempt from most statutes
• This is especially appropriate for a service type of business that does not require too much investment and when there is no component of the business that can lead to serious personal liability risk.

Disadvantage of the Partnership

• Should there be sufficient resources to repay any claim against the partner, the partners are personally liable.
• As the business grows, the partnership organization becomes less suitable and it is difficult to obtain investment capital for expansion
• Partnership law limits the number of partners to 20

Operative Societies

A co-operative society is a union of individuals, e.g., farmers usually formed to judge some productive enterprises, the profits being shared by everyone with capital or labor. Cooperatives are generally consumer-oriented, meaning that customers of a society are members who have the right to vote and to divide.

A cooperative is also defined as a voluntarily organized business operated at a cost, which is owned, capitalized and controlled by owner-sponsors, sharing risks and the proportional benefits of their participation.

Registration of an operative society

A cooperative association, under the Co-operative Society Decree, 1968 (NLCD 252), must be registered with the Registrar of Co-operative Societies, and may or may not have limited liability, Registrar registration of the co-registrar, responsible for liquidation and general development of cooperative societies. 252 Cooperative Association Degree, pursuant to NLCD. The Registrar appointed by the Government is responsible to the Cooperative Ministry. He is also the head of the cooperative department.

Subject to the provisions of the Co-operative Association Decree (NLCD 252), a society in which its members promote the economic interests of its members may be registered with or without limited liability.

Limited Liability Company

In Ghana, companies cannot be created without the authority of the Code. The rules are the documents required to be incorporated into a company under the Companies Code. To include a company, promoters will have to submit a copy of the proposed Regulations to the Registrar for registration. The regulations must include the following mandatory provisions:

• Name of the organization. If the company is limited by shares, the last word must be "limited" or its abbreviation "Limited";
• Affiliate business or object of the company;
• A statement that in the promotion of affiliated business and goods, the Company has all the powers of a natural person who has full power;
• First manager name;
• A provision that limits the ability of managers to comply with Section 202 of the Company Code;
• Where the company is a limited company, a declaration that liability is limited;
• Statement of the number of shares registered with the company where the company is registered with the shares.
• The following provisions must be stated in the Guarantee where it is limited to the Company;
• Income and property will be strictly enforced to promote its content;
• Income and property will not be distributed;
• Members will contribute to the assets of the Company in liquidation;
• Upon liquidation, the remainder of the property will not be distributed, but either the same is provided to another guarantee company with similar content or applied for some charitable purpose.

Where the company is a non-governmental organization, the following provisions must be included:

• Restrictions on transfer of shares, if the company is registered with the shares, is a limit on the number of its members;
• It is forbidden to invite people to acquire security;
• Inviting people to deposit money is prohibited.
• In addition to the provisions described herein, customers may include any legal provisions relating to the organization's structure and administration. The Regulations must be accepted by the Registrar in print, type, written or any other explicit form. It may be in standard forms prescribed under the company code or made by the tailor.

Complete regulations must be signed in the presence of at least one customer and must be substantiated by at least one witness. Where the company is registered with the share, each customer must have at least one share, which should be written in conjunction with the cash value, to indicate whether he or she is a member of the company.

Certificate of Organization

Upon registration of the regulations, the Registrar shall issue a certificate of affiliated company under its official seal, verifying that the agency is duly incorporated and, in the case of limited companies, limited. The company then becomes a body company named in the regulations and is able to exercise all the activities of an incorporated company from the date of incorporation certificate, a status that it continues to enjoy until it dissolves.