Company is the fact or condition of being with another or others, especially in a way that provides friendship and enjoyment.
Types Of Company Registration In Ghana
There are 6 types of companies/business entities that can be registered in Ghana.
Types of companies in Ghana
Depending on your business needs there are 6 main types of legal entities you may form in Ghana.
Company Limited by Shares– This is a business entity registered at the Registrar General’s Department comprising at least two individuals acting as directors of the company and at least one person (company or individual) acting as a shareholder in the entity with objects which are (usually) for the generation of profit. The liability FIND MORE LEGAL ARTICLESSEARCHof the members of this entity are limited by the value of their shares.
Company Limited by Guarantee- This company structure is best suited for Not-For-Profit Organisations. This is because the objects of a company limited by guarantee cannot include any for the generation of profit. As such these companies are exempt from corporate tax (although the organisation will have to pay income tax on behalf of any of its salaried employees)
The Company Limited by Shares and Company Limited by Guarantee are jointly referred to as “ Limited Liability Companies” this is because the personal assets of persons who form such entities are protected from liability. In other words, the liability of members of such a company is limited (by the value of their shares or guarantee).
Company Unlimited by Shares– This is a business entity registered at the Registrar General’s Department comprising at least two individuals acting as directors of the company and at least one person (company or individual) acting as a shareholder in the entity with objects which are (usually) for the generation of profit.
The liability of the members of this entity is not limited by the value of their shares. It is typically used for entities that give professional advice and services such as law firms for instance.
Sole Proprietorship– This is an entity exclusively owned by an individual who is entitled to all the profits of the business and personally liable for all liabilities of the business.
In Ghana, such entities are not required to be incorporated at the Registrar General’s Department (RGD). If the owner of this entity would like to operate under a business name it is however required to register such business name at the RGD.
External Company– An external company is a corporate body incorporated outside of Ghana which seeks to register a place of business in Ghana. Although an external company is subject to Ghanaian tax laws (income & corporate tax), such a company is regulated by the laws of the country in which it was originally incorporated.
Incorporated Partnership – Where two or more people (up to a maximum of 20) decide to go into business for the generation of profit together, they may decide to do so through an incorporated partnership registered at the RGD. There is no protection of a partner’s personal assets in an incorporated partnership. The acts of one partner bind the whole partnership.
How do I register a limited liability company in Ghana?
Steps to Registering a Company Limited by shares in Ghana
Step 1 – Company Name search at RGD.
Step 2 – Taxpayer Identification Number (TIN) registration for all company directors, secretary and shareholders.