Registration of Business


Every business in Ghana should be registered at the Registrar General's Department. Registering it means your business is now recognized by law and has the approval of the Government to operate. When it comes to looking for funding from financial institutions or even to open an account at the bank, you will be asked to provide your incorporation documents. There are many other uses of the your incorporation documents. So it is very important to register your company and be given the incorporation documents.

You can register your business as a sole proprietorship, partnership, private limited liability, limited by guarantee or a public company.

Sole Proprietorship
The sole proprietorship registration is quite simple. The following are the information you have to provide:
1. Proprietor's TIN
2. Residential Address
3. Location of Business

Click on this to view the registration form for a sole proprietorship Sole Proprietorship Registration Form

Partnership
Click on this to view the registration form for Partnership:

Private Limited Liability
Under private limited liability company registration, you need quite a number of information. You have to provide the following information:
1. Nature of business
2. Names and TIN of directors
3. Names and TIN of shareholders
4. Principal place of business
5. Name of Auditors
6. Name of Secretary

How Directors are Appointed
The directors will form the board of the company. They usually play an oversight role by ensuring that management are up to the task. They also provide the general direction of the company. This means such individuals should have rich background experience in terms of running of a business. Which implies that you have to appoint individuals who have thorough understanding of the business and its environment. The following are the steps to be followed in appointing directors:

1. Identify the individuals;
2. Draft a letter of appointment as a director for them to sign;
3. After signing the letter of appointment, the would be director has to provide you with a letter of consent to serve as a director. The letter of consent as a director will be added to the registration documents and delivered to the Registrar General's Department.


How Auditors are Appointed
1. Identify the Auditors;
2. Send them a letter appointing them to be the Auditor of the company;
3. The Auditors have to provide you with a consent letter to serve as Auditors of the company. The consent letter would be added to the registration documents and delivered at the Registrar General's Department.

The following are the documents that have to filled and delivered to the Registrar General's Department:
5. Attach consent letters from directors
6. Attach consent letters from Auditors
7. Attach consent letter from company secretary

You also need to determine the Company's stated capital, which is the owners contribution to the Company.

After successful registration of the Company, you will be given the following:
1. Certificate of Incorporation
2. Certificate to Commence Business
3. Regulations
4. Form 3
5. Form 4

You need to scan these documents and save them securely. 

I will talk about corporate governance in my next blog.

See you soon.










Comments

  1. BoatmannMarch 3, 2021 at 2:30 AM

    Thanks for the enlightenment. I was hoping you would add the cost of registering for all the types and also where exactly one can register a business

    ReplyDelete
  2. Maxwell NketsiahMarch 5, 2021 at 9:21 AM

    Hi Boatmann, thanks for your feedback. Will do so.

    ReplyDelete
  3. MannyMarch 8, 2021 at 5:16 AM

    How do I follow u on Facebook andTwitter?

    ReplyDelete

Post a Comment

Popular posts from this blog

Four Things You Should Know About Inventory

Image
  Manufacturers, wholesalers and retailers can testify that inventory is the backbone of their business. Even service companies keep inventory of items they use in delivering their services. In simple terms, inventory refers to store of goods for use or for other purpose. Some companies practice Just-In-Time inventory management. This is a method where goods are received from suppliers only when there is an order. The reason is to reduce the cost of keeping inventory.   Poor inventory management can lead to several problems. It can disrupt business operations and lead to customer dissatisfaction. For example, a company cannot produce when there is shortage of raw materials. Items of inventory can be stolen if management do not pay close attention to inventory levels. Inventory can be damaged if they are not handled properly.   Why keep Inventory   To meet customer demand   This is especially important for retail business. For retailers to stay in b...
Read more

How Your Net Salary is Calculated in Ghana

Image
  The first figure people look out for on their pay slip is their net salary, also known as take home pay. The net salary is of much interest because that is the amount that will hit the person’s account. Besides this, most people pay little or no attention to the other details of the pay slip, let alone how the net salary was arrived at. If you happen to be one of them, don’t worry; this article is for you. “Why should I care about the other details?” One will ask. First, the worker needs to confirm whether the payroll calculation is done correctly. Imagine receiving wrong salaries for years because there was a mistake in the calculation. Of course, if the mistake results in receiving higher salary for years, I guess it will call for celebration. What about receiving lower salaries for years because of wrong calculation? I can imagine the pains and the anger. Secondly, the employee needs to confirm whether the employer is paying the correct Social Security Contribution on their ...
Read more

Pricing Strategy for Your Business

Image
  According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. Obviously, price has a direct relationship with demand of products and services. One of the key factors buyers consider in their buying decision is the price. There is a link between the price of a product and its value. Buyers expect products sold at a premium to be of high quality and vice versa. The price determines the profit margin a business earns. So, it is very important for businesses to set the right prices for their products and services. Business owners must figure out the price that would attract customers and bring decent margin at the same time. The business is at risk of losing customers if the price is too high, however, a low price could erode the business’ profit margins. The goal is to find the right price point that maximizes sales and profit. There are several pricing strategies depending on what the business se...
Read more