A Technology Transfer Agreement (TTA) between a Ghanaian company and a foreign entity may need to be registered with the Ghana Investment Promotion Authority (GIPA) before covered fees can be remitted abroad. The current framework identified for this guide is the GIPA Act, 2026 (Act 1173), together with the Technology Transfer Regulations, 1992 (L.I. 1547). Under the updated framework, the agreement must meet the applicable minimum-duration and registration-term requirements. Registration also matters for bank processing and tax deductibility. This guide outlines the types of agreements covered, fee limits, documents and key compliance risks. Two legislations generally apply to technology transfers in the Ghanaian economy.
What are the types of TTAs that must be registered?
The following categories of services between a parent or external company and their affiliate or subsidiary are required to be registered under the GIPA Act and in accordance with the Technology Transfer Regulations.
- Industrial property: this has to do with trademarks, tradenames, licences, patents among others
- Technical expertise: provision of technical expertise relating to feasibility studies, plans, diagrams, models’ formulae
- Know -how: this involves knowledge for the use in installing machinery and equipment, immediate goods and raw material
- Managerial services and personnel training: this involve the day to day management of a local company by a foreign entity or provision of training programme over a period to a local company.
Key requirements for Technology Transfer Agreement Registration
For a TTA to hold, the following must be satisfied;
- The Technology Transfer Agreement (TTA) must be between a Ghanaian incorporated company (Transferee) and foreign based company (Transferor)
- A Technology Transfer Agreement must have a duration of at least 12 months, subject to the requirements under the GIPA Act, 2026 (Act 1173) and the applicable regulations.
- Payment for the technology is transferred by the Transferee through the banking system
- The technology under the TTA must not be freely and easily available in Ghana.
- Initial duration of a registered TTA is a maximum of 10 years.
- A TTA may be renewed for a period not exceeding 5 years after the expiration of the initial TTA.
- The Transferor of the technology must provide training to the Transferee and its employees to ensure effective utilization of the technology. Training programme must contain the following;
Payment to the Transferor
Usually for a TTA, these are the limits to the fees that can be charged by a transferor. The law in Ghana basically provides a threshold for transfer of fees, and that even though it does not say how much a company can transfer, it stipulates that companies should not transfer above a percentage of their net sales.
| No | Technology Type | Allowable charges |
| 1 | Royalties for Intellectual Property | 0-6% of net sales* |
| 2 | Technical Services/ Assistance | 0-3% of net sales |
| 3 | Know-how | 0-2% of net sales |
| 4 | Management Services | 0-2% of profit before tax |
| 5 | Where a transferor provides management or technical services, in addition to patents know-how and trademarks, the total fee shall not exceed 8% of net sales. | |
*Net sales for the purpose of Technology Transfer means , ex-factory selling price of the product exclusive of sales tax and excise duties levied by Government or the net income accruing from a service, minus the landed cost or payment for any component, materials and supplies imported from the technology supplier other than initial capital equipment and the first round of components, materials and supplies imported therefrom.
Any request for fees higher than the upper levels specified above shall be subject to the approval of the Centre.
Registration Procedure of Technology Transfer Agreements
To register TTA with the GIPC, the following steps and documentation is required:
- Complete technology transfer agreement Form GIPA/T1
- Certified true copy of Certificate of Incorporation
- Three original or certified copies of the TTA
- A detailed training schedule
- A yearly forecast of fees to be transferred during the term of the Agreement
- Evidence of industrial property registrations if applicable
- Audited accounts for the two (2) most recent years of the Transferee Company
- A copy of Company Regulations
- A copy of GIPA Registration Certificate
- A copy of GIPA Renewal of Registration Certificate if applicable
- Payment of non-refundable application fee and approval fee based on transfer value
Usually, it takes the GIPA 6 weeks to review and register an application for TTA.
Benefits of Registering your Technology Transfer Agreement with GIPA
It is mandatory that all entities engaged in any form of technology transfer agreement register such agreement to allow the transfer of payments. The best part is that the annual transfer payment is treated as an expense by the transferee firm in Ghana and hence, its deducted from profit before tax. Corporate tax is 25% per annum on profits so you can imagine the tremendous savings you making by simply getting your TTA registered.
Registering a TTA is important for more than administrative compliance. Under the current GIPA framework, banks must verify that a covered agreement is registered before processing the relevant payments abroad, and fees under an unregistered agreement are not deductible for tax purposes. Non-compliance may also attract administrative penalties and criminal sanctions.
FAQs
Which Technology Transfer Agreements must be registered in Ghana?
Agreements involving industrial property, technical assistance, know-how, management services, or personnel training between a Ghanaian company and a foreign entity may require registration with the Ghana Investment Promotion Authority (GIPA), depending on the applicable legal requirements.
Which laws govern Technology Transfer Agreements in Ghana?
The main legal framework comprises the Ghana Investment Promotion Authority Act, 2026 (Act 1173), and the Technology Transfer Regulations, 1992 (L.I. 1547).
What is the minimum duration of a Technology Transfer Agreement?
A TTTA must have a duration of at least 12 months to meet the applicable registration requirements.
How long can a registered Technology Transfer Agreement remain valid?
The initial registration term may not exceed 10 years, while a renewal may be granted for a period not exceeding five years, subject to the applicable requirements.
What fees can a foreign company charge under a Technology Transfer Agreement?
Royalties for intellectual property at 0–6% of net sales, technical services at 0–3% of net sales, know-how at 0–2% of net sales, and management services at 0–2% of profit before tax. Where multiple services are combined, the total fee may be subject to an overall limit of 8% of net sales. Higher fees may require approval from GIPA.
What documents are required to register a Technology Transfer Agreement?
The documents include the prescribed application form, the Ghanaian company’s incorporation documents from the Office of the Registrar of Companies, three original or certified copies of the agreement, a detailed training schedule, an annual forecast of transfer fees, relevant industrial property registration evidence, audited accounts for the two most recent years, company regulations, and applicable GIPA registration certificates.
How long does it take to register a Technology Transfer Agreement with GIPA?
Approximately six weeks for the review and registration process. The actual timeframe may vary depending on the application and whether additional information or amendments are required.
Why is TTA registration important for payments to foreign companies?
Registration is important because banks may require evidence of registration before processing covered payments abroad. It also affects the tax treatment of fees paid under the agreement.
Are payments under a registered Technology Transfer Agreement tax-deductible in Ghana?
Eligible fees under a properly registered agreement may qualify as deductible business expenses, subject to applicable tax laws and requirements. Registration alone does not automatically make every payment deductible.
Can an unregistered Technology Transfer Agreement cause compliance problems?
Yes. An unregistered agreement may create difficulties when remitting payments abroad and may affect the deductibility of related fees for tax purposes. Non-compliance may also expose the parties to applicable administrative or legal sanctions.
Is employee training required under a Technology Transfer Agreement?
Training is an important requirement. The foreign technology provider is expected to provide training to the Ghanaian company and its employees to support the effective use of the transferred technology.
Can a Technology Transfer Agreement drafted outside Ghana be registered without amendments?
Not necessarily. An agreement prepared under another country’s laws may contain provisions that do not meet Ghana’s registration requirements. Reviewing the agreement against Ghana’s applicable legal framework before submission can help reduce delays and the need for amendments.
Conclusion
Registering a Technology Transfer Agreement (TTA) with the Ghana Investment Promotion Authority (GIPA) is an important step for businesses engaging foreign entities to access technology, intellectual property, technical expertise, or management services. Properly structuring the agreement from the outset helps businesses meet applicable registration requirements, minimise delays, facilitate eligible payments abroad, and support the appropriate tax treatment of related fees.
Companies should pay particular attention to the agreement’s duration, fee limits, training obligations, supporting documents, and compliance with Ghana’s regulatory framework. Agreements drafted without considering local requirements may require costly amendments or experience delays during registration.
