How to Register a Company Limited by Shares in Ghana

Starting a business in Ghana

The first step in starting a business in Ghana is to legally register the business entity at the Registrar General’s Department (RGD). There are various forms of business entities that can be registered under the laws of Ghana and it is therefore imperative to choose the right legal structure that best serves your business intentions. These are the various forms of business registration under the laws of Ghana;

  • Companies Limited by shares
  • Companies Limited by guarantee
  • Companies with unlimited liability
  • External Company
  • Sole Proprietorship
  • Partnership

See Below infographics on the current statistics of business registrations at the Registrar General’s Department (RGD)

Summary infograph_Registrar General’s Department (RGD)_2

 

With the automation at the Registrar General’s Department (RGD), business registration has become fairly easy.

All business registration forms are downloadable at https://rgd.gov.gh/forms.html or on-sale at GHS 50.00 at the RGD. Register your company in Ghana with ease, by simply following the steps outlined below.

Steps to Registering a Company Limited by shares in Ghana

Step 1 – Company Name search at RGD

Conduct your company name search in Ghana to ensure the availability of the proposed business name for the company. Company promoters may after the name search apply to have their business name reserved for a period of 30 days.

The business name must be meaningful, relevant and distinctive.  Business names that are too similar to existing names are likely to be rejected by the Registrar General’s Department. For example, if there is an existing company called Yayra Company Limited, a similar name like Yayara Company limited cannot be registered; such a name would be rejected, however, applicants will be advised to amend their company name accordingly. The choice of a business name must be relevant to the nature of activity of the company. Moreover, the business name must not be offensive and undesirable or violate existing trademarks.

Step 2 – Taxpayer Identification Number (TIN) registration for all company directors, secretary and shareholders

Download TIN forms @ http://rgd.gov.gh/wp-content/uploads/2015/12/Taxpayer-registration-form-individual.pdf . All company directors, secretary and shareholders are required to register and obtain a TIN for the purposes of business registration. Complete TIN forms and attach a copy of photo ID (Drivers, passport bio-data, voters ID). TIN numbers are created within 24 to 48 hours at no charge at any Ghana Revenue Authority office.

TIN numbers can also be created for corporate organizations. This situation becomes necessary when the shares of the company being registered are held by a corporate entity. In such a scenario, the corporate organization will obtain a TIN Form for Organizations and dully complete same and attach a letter of introduction. A TIN number will subsequently be created for the corporate shareholder.

All persons or organizations are required to have one TIN number for all their registered businesses; in case you decide to register more than one business entity or you serve as a director on several business organizations. Information required to complete an individual TIN form include;

  • Name
  • Occupation
  • Photo ID details
  • Mother’s maiden name
  • Residential and postal address (Digital/Ghana Post Address of the company)
  • Contact

i.  TIN form for business registration

For more information, watch this video;

STEP 3 –     The next step is to download and complete the following forms below.

i. Form 3 – Private Limited.

 Information required to complete the form

  • Company Name
  • Nature of Business (Give a brief description of the company’s business activities
  • Registered Office
  • Digital Address
  • House Number/Building or flat Name
  • Street Name
  • City
  • District
  • Region
  • Principal Place of Business
  • Digital Address
  • House Number/Building or flat Name
  • Street Name
  • City
  • District
  • Region
  • Other place of business if any
  • Personal details of directors, secretary and shareholders (nationality, date of birth, occupation, contact, email and residential address)
  • Tax Identification Number of directors, secretary and shareholders
  • Authorized Shares
  • Stated Capital
  • Shareholding Structure
  • Auditor’s details

ii.   Form 26(A) – Consent to act as a company director form.

Section 172 (2)(b) of the companies Act, 2019, Act 992 states that;

“ (2) A person shall not be appointed as a director of a company unless the person has, before appointment;

(b) Consented in writing to be a director and filed the consent twenty-eight days.”

iii.   Form 26(B) – Consent to act as a company secretary form.

According to the Companies Act, 2019, Act 992, section 211(8);

“The Company Secretary shall, before assuming office, lodge with the company for onward transmission to the Registrar, the written consent to serve as a Company Secretary”. A company secretary may be an individual or a corporate body. In whichever case, the secretary is required to possess some qualifications as specified in the Act and is also outlined in form 3 (of the registration form) for your consideration.

Information required to complete this form

  • Company Name
  • Personal details of the secretary (Name, Residential Address, Postal Address, Mobile Number and qualification)
  • Signature
  • Date

iv.   Form 26 (C) – Statutory declaration form.

This is a form that are required to be completed by the directors of the company to declare that the information provided is true.

v. Beneficial Ownership Form

This form is to disclose the beneficial owners of the company. Complete BO1 and BO2.

Information required to complete the form;

  1. Purpose of Beneficial Ownership Information (You select “Company Registration)
  2. Company Information
  • List of the Beneficial Ownership.
  1. Details of the Beneficial Ownership
  2. Type of Company

 

STEP 4 –  Pay stamp duty, business incorporation and filing fees

There are two main statutory fees to be paid at the Registrar General’s Department during company registration; these are Stamp duty, Incorporation and filing fees.

  • Stamp duty is 0.5% of the stated capital. For example a stated capital of 100,000 Cedis is equivalent to a stamp duty of 0.5% x 100,000 Cedis = 500 Ghana Cedis. The minimum amount of stated capital for all 100% Ghanaian owned limited liability companies is 500 Cedis.

However, companies with joint foreign ownership, 100% foreign ownership have different stated capital requirements. The stated capital requirement for companies in this categories are;

  • 100% foreign ownership –US $ 500,000
  • Joint venture between foreigner and Ghanaian – US $ 200,000
  • Trading enterprise (whether jointly owned or 100% foreign owned) – US $ 1,000,000
  • Incorporation and filing fees are also required to be paid upon submission of business registration forms. The total cost is 330 Ghana Cedis, which is payable directly at the RGD by cash.

STEP 5 –   Collect Business registration documents

Upon submission of forms, one should expect to have the process completed in 2 weeks, after which the following documents will be issued;

  • Certificate of incorporation             `
  • Form 3
  • Constitution

These are the legal documents of proof of company’s existence in Ghana. The documents will indicate clearly the business name, activities, business address, directors’ details, company TIN as well as shareholders information among others. The business certificates can be used for any business transaction or open a corporate bank account with any of the commercial banks in Ghana.

NB: Registrar General Digital Address System – All businesses that want to register at Registrar General Department must have digital address in relations to their business units. This will enhance compliance by RGD, debt recovery by banks, business permit by AMA, paying of taxes by GRA and payment of SSNIT contribution.

 

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Annual General Meetings

Pursuant to section 149 of the companies Act – ‘Except as provided in subsection (3) of this section, every company shall in each year hold a general meeting as its annual general meeting in addition to any other meetings in that year, and shall specify the meetings as the annual general meeting in the notices calling it; and not more than fifteen months shall elapse between the date of one annual general meeting and the next;

Provided that, so long as a company holds its first annual general meeting within eighteen months of its incorporation, it need not to hold it in the year of its incorporation or in the following year.

The cost of annual returns is ¢50 for all companies limited by shares, companies limited by guarantee, partnership and companies with unlimited liability. Failure to do so shall attract a penalty of ¢400.

On other hand, the annual returns fee for Sole proprietors and External companies are ¢25 and $600 respectively. An external company that does not file its annual returns shall be made to pay a penalty of $750.

To file for annual returns, these are the requirements;

  • A complete annual returns form from Registrar General’s Department
  • Audited Financial Statement for the year. The Financial Statement must be approved and signed by Directors of the company at the Annual General Meeting of the company.
  • Fee of ¢50

Filing Annual Returns for the Company

As required by section 122 of the companies Act, 1963, all registered companies are to file annual returns each year, after 18 months of incorporation.

Section 122. (1) states-  Every company shall once at least in every year, deliver to the Registrar for registration of an annual return shall including particulars of every  member of the company, and in the form and relating to the matters prescribed in the third schedule to this code;

 (2) The annual return shall be completed and within forty-two days of the date on which the statements, accounts, and reports of the company are sent to the members and debenture holders pursuant to section 124 of this code, and shall be signed by a director and the secretary of the company.

 

For more information, watch the video;

Making Changes or Amendments after registration of the Company

After registration of a company, the shareholders may choose to make amendments like change of business address, directors, share transfer, change of business name, activity, increase in stated capital etc. All these amendments must be done at the Registrar General Department.

These are forms to be completed depending on the nature of change and written resolutions prepared by the company secretary, duly signed by both shareholders and directors. For Change of directors, both resignation and acceptance letter from the old director and new director respectively, must be attached.

Conclusion

Registration with Registrar General’s Department is fairly easy. However, forms for registration are mostly queried by the Registrar on grounds of incomplete information or misinformation provided on the forms. This normally culminates in the delay of the completion of registration.

We hope this article will help enlighten you on the processes involved and staying compliant. Tell us what your experiences have been in registering your business in Ghana and feel free to comment, share and ask questions.

57 Comments

  • max

    March 7, 2018 - 1:54 pm

    i wanna open a company in ghana

  • Sandra Kotey

    April 3, 2018 - 10:27 pm

    Please what is the process involved in registering an external company
    Thank you

  • Cynthia Denteh

    May 3, 2018 - 9:10 am

    Which type of company does a school falls and how is the renewal done?

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    July 4, 2018 - 7:30 am

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  • cerdric okoe boah

    July 25, 2018 - 6:15 pm

    please i will like to register my company i need the way to do it please thank u see you soon

  • Prince Nkrumah Sarpong

    August 3, 2018 - 9:07 am

    i am a priest of an Oracle {Ancestral Home Oracle}. i have been treating diseases for some time now but recently i am able to not only take care of my patients one on one but the Gods have permitted me to package some of the drugs for sale. upon this, i visited the food and drugs board for their certification but was referred to the business registration for the certification of the small scale businesses. on reaching the sunyani municipal office ui was redirected to either kumasi or to download some forms online. i dont rely know if this is very necessary since the act of healing is not exactly a business

  • Latif Issaka

    August 7, 2018 - 5:33 pm

    Are the stamp duty required to be paid by any business

  • kplink

    August 15, 2018 - 8:25 pm

    this was very helpful.

  • OSEI BOATENG ISAAC

    August 18, 2018 - 7:13 am

    Church

  • Emmanuel Oppong Asante

    October 19, 2018 - 9:57 am

    Please am a young man and would like to operate as a mobile money merchant. What are the requirements and steps in obtaining a business certificate

  • Obeng Owusu Emmanuel

    December 18, 2018 - 4:24 pm

    Will there be rules issued by the Registrar General for the company you decide to set up

  • Meshack Anonene

    January 7, 2019 - 9:00 am

    What is the minimum stated capital required for Ghanaian owned limited company.
    And what constitutes the stated capital.
    Thanks

  • Frimpomaa Janet

    January 7, 2019 - 9:15 am

    The article is great but I think that the public should be educated on it using Audio Visuals and also through the Media for more clarification.
    Thank you

  • Ebenezer Agyei Boateng

    January 29, 2019 - 7:11 pm

    This has been helpful to me. I suggest more education should go into making the citizens aware. Thank you

  • Marian Prempeh

    April 11, 2019 - 5:57 am

    In searching for the company name do you have to fill out all the forms before the name it can be verified

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  • isaac okyere

    May 9, 2019 - 1:38 pm

    hello, i just want to know how page 6 of the company limited shares are being filled

  • James mensah brako

    May 16, 2019 - 5:46 pm

    I want to register my business

  • Gabatlhalose Motshwana

    May 19, 2019 - 9:25 am

    What is the penalty to fail to submit company profile and cash overflow to anti money laundering unit?

  • Gabatlhalose Motshwana

    May 19, 2019 - 9:36 am

    How much is the fine or penalty due to failure to submit company profile and cash to anti money laundering unit before deadline as source of funds?

  • Stephen

    June 1, 2019 - 10:33 am

    I wanthink to register my business or company, but in away that I can carry out different duties (like land surveying, buidiing services, mobile money etc within the same company how can go about it.

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    June 11, 2019 - 9:53 am

    How will I be able to register a standard and successful company in Ghana

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    July 31, 2019 - 11:08 am

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  • Richard Selorm

    August 9, 2019 - 4:41 am

    why don’t you people involved third partner to make the work easily..
    And also you people should do a lot of advert to inform the public about Business registration
    Thank you

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  • Agyeman Jnr

    September 23, 2019 - 8:52 am

    This article is awesome. It has addressed all my queries at go.

    However the links to the forms doesn’t seem to be right as I tried a number of times to download without success.

  • Amanfo Emmanuel

    November 2, 2019 - 11:02 pm

    It’s been good for this information but we are two directors who are starting a company and we are the only two shareholders. Can we still go ahead and apply with limited by shares?

  • Agyapong Fosu-Amankwah

    January 5, 2020 - 10:54 am

    You have chronologically identified the relevant steps in the registration of a company limited by shares. The approach has contributed a guiding principle and additional literature to the existing knowledge, to both students an researchers, as well as all who care to know..
    My comments are both recognition of a good work done and a recommendation for your time spent on this relevant article.

  • Eben

    January 19, 2020 - 1:30 pm

    What about starting as a small scale business

    • Firmus Advisory

      January 20, 2020 - 8:36 am

      Dear Eben, thanks for reaching out. The article gives you an idea of all that you may need to register a small scale business too. However, check back on our website again in some few days as we will publish content tailored to your query.
      Thanks and have a good day.

  • Tori

    January 20, 2020 - 2:10 pm

    This is a very useful blog! I would like to know about the creation of a cleaning agency. How many companies are already working in this area. Is it worth considering this type of activity?

    • Firmus Advisory

      January 21, 2020 - 8:25 am

      Hello Tori, thanks for the feedback. We will be very happy to assist you set up your cleaning company. Kindly send email one of our staff at atwumasi@firmusadvisory.com for more details on your enquiry. Cheers!

  • How to Register Food Production in Ghana | Firmus Advisory

    January 21, 2020 - 9:27 am

    […] READ ALSO: How to Register a Company Limited by Shares in Ghana […]

  • Yeni

    February 10, 2020 - 8:27 am

    How about a foreign company that would like to open an office in Ghana for the purpose of operations only which excludes selling their services to the Ghanaian market. An example is a company like Andela.

    Will such company still need to pay the minimun capital requirement of 500,000 USD?

  • How to Obtain Visa On Arrival to Nigeria | Firmus Advisory

    February 13, 2020 - 1:29 pm

    […] READ ALSO: How to Register a Company Limited by Shares in Ghana […]

    • Peter Baah

      March 30, 2020 - 4:27 pm

      We intend to register a Company Limited by shares with 2Ghanaians and a Nigerian as Directors to trade in Financial documents like Letters of Credit and Commodities and what should be the charges .

      • Firmus Advisory

        March 31, 2020 - 8:18 am

        Our compliance team will revert soon, Thank you.

  • How to Open a Bank account in Ghana | Firmus Advisory

    February 21, 2020 - 1:08 pm

    […] READ ALSO: How to Register a Company Limited by Shares in Ghana […]

  • Ebenezer Eiye Mensah

    May 28, 2020 - 12:43 pm

    I want to register my small company please I need help

    • Firmus Advisory

      May 28, 2020 - 12:44 pm

      Thank you for your query, kindly use the live chat on our website a compliance rep will attend to you. Thank you.

  • Joseph Addo

    May 31, 2020 - 10:40 pm

    please I want to know the procedures in registering a sole proprietorship if the person wants to use a different name other than his name. Thank you.

    • Firmus Advisory

      June 1, 2020 - 3:22 pm

      Thank you for your query, kindly use the live chat on our website a compliance rep will attend to you. Thank you.

  • PETER ARKO

    July 2, 2020 - 2:07 pm

    Good afternoon,
    please i would like to make inquires on how to open a sole proprietorship in Ghana.

    • Firmus Advisory

      July 2, 2020 - 2:54 pm

      Thank you for your query, kindly use the live chat on our website a compliance rep will attend to you. Thank you.

  • OUNO gbandi

    July 3, 2020 - 3:15 pm

    Please I’m a refuse collector and nown I wanted to register my job . please how should I proceed?

  • Francis

    July 4, 2020 - 1:22 pm

    Can you please help me register a sole proprietor business and how much will it cost.

    • Firmus Advisory

      July 4, 2020 - 5:38 pm

      Thank you for your query, kindly use the live chat on our website a compliance rep will attend to you. Thank you.

  • Patrick Attipoe

    August 13, 2020 - 7:43 pm

    Form-Regulations-CLS:
    section 7 (page 2 of 16): how does one determine or calculate the number of shares….?

    • Firmus Advisory

      August 17, 2020 - 7:50 am

      Thank you for your query, kindly use the live chat on our website a compliance rep will attend to you. Thank you

  • Winfred

    September 15, 2020 - 7:44 am

    Hi I want to know the cost price of registration of a company in Ghana as a foreigner?

    • Firmus Advisory

      September 15, 2020 - 8:45 am

      Hi I want to know the cost price of registration of a company in Ghana as a foreigner?

    • Firmus Advisory

      September 15, 2020 - 8:47 am

      Thank you for your query, kindly use the live chat on our website a compliance rep will attend to you. Thank you

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