In this knowledge-based article, we are going to explore how to register a sole proprietorship business in ghana
Starting a business is one of the most effective ways to deal with hardship in every economy. In a fast-moving economy like Ghana, there is a high chance for business growth for striving entrepreneurs.
Registering a business is one of the most important things business owners should take note of as they think of expansion. Just as it is in many countries, It’s a requirement to register your business with the registrar general department to be fully operational once you are trading under a business name.
Starting a business comes with its advantages. To enjoy the best of life, you need to get a fast-moving business that guarantees profitability with less risk.
By data, most of the common names who have made it financially are people doing their own business. That’s the life flexibility entrepreneurship brings. The following are some of the benefits entrepreneurs enjoy;
- Be your boss
- Choose your team
- Creative expression
- Excellent learning experience
- Flexible Schedule
- Following a vision/cause
- Greater potential profit
If you want to know more about how to register a partnership business in Ghana, you can resort to this our article.
Do Sole proprietors need to register their business name?
A sole proprietor need only register his or her name and secure a certificate once the business is trading under a business name.
The owner of a sole proprietorship typically signs contracts in his or her own name, because the sole proprietorship has no separate identity under the law.
Types of business registration in Ghana
- Companies Limited by shares.
- Companies Limited by guarantee.
- Companies with unlimited liability.
- External Company.
- Sole Proprietorship.
How To Register A Sole Proprietorship Business In Ghana
Now that we know the various forms of business registration in Ghana, how do you register a business in Ghana?
The following are the practical steps to register a partnership business in Ghana;
Step 1 – Company Name search at RGD
Conduct your company name search in Ghana to ensure the availability of the proposed business name for the company. Company promoters may after the name search apply to have their business name reserved for 30 days.
The business name must be meaningful, relevant and distinctive. Business names that are too similar to existing names are likely to be rejected by the Registrar General’s Department.
For example, if there is an existing company called Success Africa Media Group Limited, a similar name like Success Africa Media Group Limited cannot be registered; such a name would be rejected, however, applicants will be advised to amend their company name accordingly.
The choice of a business name must be relevant to the nature of the activity of the company. Moreover, the business name must not be offensive and undesirable or violate existing trademarks.
You may use this link to check the availability of your business name. if your prospective business name is similar to an already registered business, you are advised to change the name completely as it may not be approved.
Step 2 – Taxpayer Identification Number (TIN) registration for all company directors, secretaries and shareholders
All company directors, secretaries and shareholders are required to register and obtain a TIN for business registration. Complete TIN forms and attach a copy of photo ID (Drivers, passport bio-data, voters ID).
TIN numbers are created within 24 to 48 hours at no charge at any Ghana Revenue Authority office.
TIN numbers can also be created for corporate organizations. This situation becomes necessary when the shares of the company being registered are held by a corporate entity.
In such a scenario, the corporate organization will obtain a TIN Form for Organizations and dully complete the same and attach a letter of introduction. A TIN will subsequently be created for the corporate shareholder.
All persons or organizations are required to have one TIN for all their registered businesses; in case you decide to register more than one business entity or you serve as a director on several business organizations. Information required to complete an individual TIN form include;
- Photo ID details
- Mother’s maiden name
- Residential and postal address (Digital/Ghana Post Address of the company)
TIN form for business registration- Sample
Step 3 – Download the Business Registration Form
After securing your business name and TIN Number, the next thing is to download your business registration forms and fill them accordingly. Applicants are advised to read all the instructions on the forms before filing.
The forms are available on the Registrar General’s Department official website. You may use this link to download the business registration forms.
How much does it cost to register a sole proprietorship in Ghana?
What Is the Cost of Registering a Sole Proprietorship Business? The official fees for registering a sole proprietorship business in Ghana is GH₵60. This payment is to be paid at the in-house bank at RGD.
An applicant may purchase and complete Form “A” for Incorporation of Partnership from the in-house bank or Download
Provide stamped Partnership agreement at Land Valuation Board
Submit filled forms at the Partnership Registration Counter for Verification and Capturing or via Online
Pay processing fee of Gh¢160.00 at the in-house bank or via Online
Registrar Examines, Approves & Issues Certificate Incorporation As well as CERTIFIED TRUE COPY(CTC) of Form B
File Annual Returns at Fifty Ghanaian Cedi(GHS 50) together with Audited Account
Final thoughts – how to register a sole proprietorship business In Ghana
Registering a sole proprietorship business in Ghana should not be difficult. The above comprehensive guide should give you all the necessary information you need to successfully register your sole proprietorship business.
Should you need a special assistant, you may leave a message in the comment section for a redress.
You are the reason we provide educative content like this. You can support us by sharing this article with your friends to grow this community.
What are your thoughts on this article? Let us know in the comment section.