Many small businesses in Accra operate for years without registration. The owners only discover the cost when they try to open a business bank account, bid for a contract or sign a lease. Registering is now largely done online, and for a sole proprietorship it can be straightforward.
The ORC
The Office of the Registrar of Companies (ORC) handles business registration in Ghana. It took over company registration functions that were previously handled by the Registrar-General’s Department, under the Companies Act, 2019 (Act 992).
Types of business
The main options are sole proprietorships, partnerships, companies limited by shares, companies limited by guarantee (often used by non-profits) and external companies for foreign firms. Each has different requirements and levels of personal liability.
Sole proprietorship
A sole proprietorship is the simplest form. The owner and the business are legally the same, so the owner is personally liable for debts. It suits small traders and freelancers starting out.
Limited company
A limited liability company is a separate legal entity. It protects owners’ personal assets in most cases and is usually required for larger contracts. It requires directors, a company secretary and a constitution, and must file annual returns.
Online registration
The ORC runs an online registration portal. Applicants need a Ghana Card and a Tax Identification Number, which in Ghana is now linked to the Ghana Card. Forms ask for the business name, address, nature of business and details of owners or directors.
Business names
Check that your chosen name is available before applying. Names too similar to existing businesses may be rejected.
Fees
Fees differ by business type. Check the ORC’s official schedule rather than relying on agents’ quotes.
Annual returns
Registered companies must file annual returns. Failing to do so can lead to penalties and, eventually, removal from the register. Many businesses fall behind without realising it.
Other registrations
Depending on the business, you may also need permits from the local assembly, the Food and Drugs Authority, the Ghana Revenue Authority for VAT, or sector regulators.
Using agents
Lawyers and agents can help, especially with companies. Use reputable professionals and make sure documents are filed in your name, not theirs.
Registration does not make a business successful. It does mean that when the big contract or the bank loan comes along, the business exists on paper as well as in practice.
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