Ghana is an attractive place for foreigners wishing to invest in Africa, as it is politically stable, which limits the risk of a political crisis endangering the economy and assets of foreign investors.

This jurisdiction located in Africa, through its laws, offers simple and straightforward procedures to register and formalize any business.

As any startup will have to carry out the registration of the company to be formed, in this case Ghana contributes to this and includes free registration documents. While in other countries you will be charged for these documents, in Ghana the state provides these documents free of charge.

There are many legal structures you can choose from for your business; they include sole proprietorship, limited liability company, partnership, and corporation.

You will need to determine which of these structures best suits you and which best fits your objectives. Once you have made your decision, you will register it as such.

It is possible to register a limited liability company in Ghana within one month, with the appointment of a minimum of two directors, one of whom must be a resident in Ghana.

Foreigners can form a joint venture with a Ghanaian partner and in both cases, it is not necessary to travel to Ghana to complete the formalities.

The Ghana Investment Promotion Centre Act 2013 865 establishes the registration of companies with foreign capital, being its main novelty the renewal of this registration every two years. Basically, three basic figures of foreign investment are established through this law:

o A minimum capital requirement for companies that have a local partner, this will be $200,000.
o Companies with foreign capital, registered with GIPC without a local partner, the capital will amount to US $500,000.
o Companies engaged in commercial distribution, must be constituted with a minimum capital stock of $1,000,000,00.

On the other hand, the opening of a representative office is allowed, and there is no minimum capital requirement, but a registration fee is payable.
Another novelty of the law is the requirement to renew the registration with the agency, for all companies with foreign investment, every two years.

This registration function of the GIPC is a novelty compared to previous legislation, and allows the local government to better monitor investment projects undertaken in the country, as well as their progress.

To do business in Ghana, you will need to apply for licenses and permits for the necessary businesses for which you are registered and your location of operation. As with registration, applying for your permits and licenses is much easier in Ghana compared to other countries.

Foster Swiss specializes in business implementation in the different countries, which means that they offer value-added services helping clients in their overseas expansion. Consult with a financial advisor for more information, info@fosterswiss.com