Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Ghana. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Check for availability of company name and submitt company documents to obtain a incorporation certificate | 1 day | name search – check the availability of company name is free, check the particulars of an existing company is GHC10 per search; complete set of Incorporation forms – GHC10. In addition, GHC 135 for registration of a limited company + GHC 5 per certification of regulations (3). |
| * 2 | A Commissioner of Oaths authenticates forms required for the certificate to commence business | 1 day (simultaneous with previous procedure) | GHC 2 |
| * 3 | Obtain from the Registrar-General’s Department the certificate to commence business | 2 days (simultaneous with previous procedure) | 0.5% of the stated capital as commencement tax + GHC 10 (registration fee with IRS) |
| 4 | Deposit paid-in capital in an account | 1 day | no charge |
| 5 | Apply for business licenses at the Metropolitan Authority | 7 days | please see comments |
| * 6 | Inspection of work premises by the Metropolitan Authority | 1 day (included in previous procedure) | no charge |
| * 7 | Apply for social security | 1 day (simultaneous with previous procedure) | no charge |