Starting a Business in Ghana as a Foreigner

Overview

Starting a business in Ghana as a foreigner is entirely feasible, with a clear legal framework and indicators of openness to investment. Ghana offers a stable political environment and a growing middle class with specific protections under the Ghana Investment Promotion Centre (GIPC) Act. However, as a foreign investor you must follow a set of registration, capital investment and regulatory steps, and be aware that some rules (especially minimum capital requirements) may be subject to change.

Choose a Business Structure

Foreigners may set up one of the following in Ghana:

• Limited Liability Company (LLC): The most common structure for new investors.
• Branch or Subsidiary: For an existing foreign company setting up an extension in Ghana.
• Liaison or Representative Office: For non-commercial activities (e.g. market research) but not full trading operations.

Register with the Registrar of Companies

You must register your business entity with the Registrar-General’s Department (RGD) in Accra.
The typical steps include:

• Reserving your company name.
• Preparing the company constitution or Articles of Association.
• Providing details of directors, shareholders, company secretary, and registered office.
• Paying the required stamp duty and filing fees.

After approval you will receive a Certificate of Incorporation (and often a Certificate to Commence Business).

Meet GIPC Capital Requirements

Under the GIPC Act (Ghana Investment Promotion Centre Act, 2013 (Act 865)) there are specific minimum foreign equity requirements for investor-owned enterprises. For example:

Important caveat:

• The GIPC Act itself allows for variation or exemptions (for example export-oriented manufacturing may be exempted).
• The Ghana government has  announced that it will remove the minimum capital requirements for foreign investors under a proposed revision of the GIPC Act. Therefore, you should verify the latest status directly with GIPC or a local legal advisor before relying on these exact numbers.
• Capital may be contributed as cash or in-kind (machinery, equipment) in some cases.

Register for Taxation

Once your company is incorporated you must register with the Ghana Revenue Authority (GRA) to obtain a Tax Identification Number (TIN), and handle corporate tax, VAT (if applicable) and employee taxes (PAYE/SSNIT) when you hire staff. Be sure to maintain up-to-date records and filings to stay compliant.

Obtain Business Operating Permits

You will also apply for a Business Operating Permit from the local Metropolitan, Municipal, or District Assembly (MMDA) where your business is located. In addition, certain sectors such as banking, telecoms, mining, energy or export-oriented industries may require special regulatory licences from agencies like the Bank of Ghana, National Communications Authority (NCA), or Minerals Commission.

Immigration and Work Authorization

If you or key staff are foreign nationals you must obtain appropriate immigration clearance:

• Residence Permit: Valid for up to 4 years (renewable).
• Work Permit/Expatriate Quota: For non-Ghanaian employees with your company’s support.

Note: Ghanaian nationals from ECOWAS countries benefit from some special mobility rights under the Free Movement Protocol; non-ECOWAS nationals will follow the standard visa, residence and permit process.

Open a Corporate Bank Account

To open a corporate account in a Ghanaian bank you will generally need:

• Certificate of Incorporation and Certificate to Commence Business
• GIPC Certificate (if applicable)
• Tax Identification Number (TIN)
• Board resolution authorising account opening

When foreign capital is brought into Ghana for the purposes of meeting the minimum equity requirement under GIPC, the funds (or in-kind imports) must be handled in accordance with Ghana’s foreign exchange and Bank of Ghana procedures especially if you intend to repatriate profits later.

Employ Ghanaians

Foreign-owned enterprises are required to comply with Ghanaian labour laws and give priority to hiring local staff.
Some key technical or senior management roles may be filled by expatriates but these typically must be justified and approved under the expatriate work-permit regime.

Annual Compliance

To maintain good standing you must ensure:

• Filing of Annual Returns and Audited Accounts with the RGD (or equivalent)
• Renewal of your GIPC registration (if applicable) and any business operating permits
• Maintaining up-to-date tax filings, labour compliance, and sectoral licence conditions

Non-compliance can lead to fines, penalties or suspension of your corporate registration or investment certificate.

Key Legal Framework

Ghana’s business laws for foreign investors are primarily governed by:

• Companies Act, 2019 (Act 992) — governs company structures, registration and corporate governance.
• Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865) — regulates foreign‐investment participation, minimum capital requirements and registration for non-citizen investors.
• Immigration Act, 2000 (Act 573) — covers residence and work permits for foreign nationals.
• Local Government Act, 2016 (Act 936) — governs business permits at the Metropolitan, Municipal or District Assembly level and local governance factors.

Because investment rules (especially minimum capital thresholds under the GIPC Act) are currently under review by the Ghana government (see the proposed Amendment Bill) you should check directly with GIPC before committing capital or signing major contracts.