Today Ghana continues to review many of its trade laws and regulations in order to update them to reflect trends in the multilateral trading system, improve the trading system and provide greater confidence to investors.

FDI sourcing is part of the Government's efforts to open markets and activities to promote economic growth. Under the Act, investments are also considered to include portfolio investments, that is, shares and securities traded on the Ghana Stock Exchange.

In the case of foreign investors who obtain for their companies the status of free companies, they enjoy multiple additional advantages, both monetary and non-monetary.

In addition to total exemption from direct or indirect import duties for production or export from free trade zones, there is also total exemption from payment of corporate income tax for the first ten years of activity.

After 10 years, the applicable tax rate will be 15% for export income and 25% for domestic sales.

For shareholders, the payment of taxes on dividends flowing out of free zone investments is part of the incentives of investing in Ghana's free zones.  The foreign investor is not required to apply for import licenses.

As far as repatriation in foreign currency is concerned, there are no conditions or restrictions on dividends or net profit attributable to investments, repayment of foreign loans, payment of fees or charges for technology transfer agreements. Ghana does not apply conditions to trading in foreign currency accounts with commercial banks in Ghana.

An interesting fact is that, at least 70% of the annual production of enterprises in free trade zones must be for export. Accordingly, up to 30% of such production is allowed to be destined for the Ghanaian market with treatment identical to that provided to ordinary imports.

Investments in Ghana's free zones are guaranteed against nationalization or expropriation and are regulated by the Free Zones Act 1995 (Act 504) and the Free Zone Regulations 1996. The Free Zones are governed by the Ghana Free Zones Board (GFZB); whose website has a virtual registration system.

Foster Swiss specializes in the implementation of businesses in the different countries, which means that they offer value-added services to assist clients in their overseas expansion. Please consult a financial advisor for more information, info@fosterswiss.com