Business entities in Ghana

Business entities in Ghana

Healy Consultants will assist our Clients with incorporating the optimal corporate structure in Ghana. There are several ways of doing business in this country, the most common being through the registration of a limited liability company. Alternatively, foreign companies can also register a branch office or a representative office.

The Ghana limited liability company (LLC)

  • A Ghanaian LLC can be formed by a single shareholder, who must also appoint two directors. Why all can be foreigners, one of the directors must be ordinarily resident in Ghana. The minimum paid-up share capital required to complete the incorporation process amount to US$50,000 for a wholly foreign owned company but this minimum is however increased to US$300,000 if the company expects to make sales in Ghana. Foreigners investing in a joint venture with a Ghana national are required to make a minimum contribution of US$10,000;
  • Ghana limited liability companies must appoint a company secretary as well as a licensed Ghanaian auditor, as all business entities are obliged to carry out an audit of their annual financial statements;
  • The Ghanaian LLC must have a registered office in Ghana with a post office box to which all communications and notices to the company may be addressed, and must maintain statutory and accounting records in the registered office.

The Ghana public limited company (PLC)

  • This business entity is recommended when the promoters intend to publicly list the company. The Ghanaian PLC must have a minimum stated capital of US$150,000 of which 20% must be paid up for the incorporation process to be complete. This amount is however increased to US$50,000 if the company is wholly foreign-owned (and up to US$300,000 if such entity plans to make local sales);
  • At least one shareholder and two directors of any nationality must be appointed. As a LLC, it is a requirement that i) one of the directors of the PLC must be ordinarily resident in Ghana and ii) to submit audited financial statements every year to the local Companies Registrar;
  • Public companies may offer their shares for sale to the public through a listing on the Ghana Stock Exchange (GSE).

Branch office (External company)

A Ghana branch office requires one representative of any nationality but resident in Ghana, who is authorized to accept service of court processes and other official government documents on behalf of the parent company. Also, the branch office must have a registered address in Ghana with a post office to which all communications and notices may be addressed and must maintain statutory records in this office.

Free zone company

  • Investors may also opt to establish an entity in the Ghana free zones. A Ghana free zone company may be 100% foreign owned and does not require a resident director for incorporation process to be complete. Investors must register with the Ghana Free Zones Board (GFZB);
  • There is no stipulated minimum capital required in order to establish a company in the Ghana free zones. Investors must however show proof of ability to fund their businesses and fulfil the 70% export requirement for the incorporation process to be complete;
  • Entrepreneurs looking to establish a free zone company may invest in any business sector with the exception of i) manufacture of plastic ii) processing of timber and timber related activities and iii) exploration and extraction of precious metals, gas and crude oil;
  • The free zone companies are entitled to incentives that include 100% exemption from payment of direct and indirect duties and taxes on all imports for production and exports from free zones, no import licensing requirements and there are no restrictions on repatriation of dividends and net profits. These are among many other incentives offered to investors of free zone companies.

Table of comparison between Ghana entities

 LLCPLCBranchFree Zone
How long to set the company up?4 weeks4 weeks4 weeks6 weeks
How long to open company bank account?4 weeks4 weeks4 weeks4 weeks
Legal liability?LimitedLimitedUnlimitedUnlimited
Wholly foreign owned?YesYesYesYes
Minimum paid - up share capital for WOFE?US$50,000US$50,000NoneNone
File annual tax return?YesYesYesNo
Tax registration certificate required?YesYesYesNo
Recommended corporate bank account?Standard Chartered BankBarclays BankEcobankBank of Africa
Does our Client need to travel?NoNoNoNo
Resident director required?YesYesYesNo
Resident shareholder required?NoNoNoNo
Minimum directors allowed?2211
Minimum shareholders?11Parent company1
Tax identification code needed?YesYesYesYes
Ghana resident company secretary required?YesYesNoNo
Corporate shareholders allowed?NoNoYesYes
Corporate director(s) allowed?NoYesNoYes
Statutory audit required?YesYesNoNo
Ghana corporate tax rate?25%25%25%0%
Annual financial statements required?YesYesYesNo
Regulated by?GIPCGIPCGIPCMinistry of Trade and Industry
Allowed to issue sales invoices?YesYesYesYes
Allowed to sign contracts?YesYesYesYes
Allowed to import and export goods?YesYesYesYes
Can rent an office space in Ghana?YesYesYesYes
Can buy Ghana property?YesYesYesYes
Total Ghana business setup costs in yr. 1?US$18,650US$23,650US$17,300US$23,650
Subsequent annual costs (incl. accounting and tax fee)?US$2,800US$3,800US$2,550US$5,800
Sample engagement invoice?

Contact us

For additional information on our business setup services in Ghana, please email us at Alternatively please contact our in-house country expert, Mr. Paavan Chhabra, directly:
client relationship officer - Paavan