7 Proven Ways to Legally Register Your Real Estate Business in Ghana

Your real estate business future depends on the type of corporation you decide to incorporate in Ghana. It is preferable to get it properly the first time even when there are choices for changing it in the future. Choose among the 7 types of business registration in Ghana and get it right with the assistance of this article!

You can have several different types of business registration in Ghana with the government. However, The three most prevalent business structures are partnerships, limited liability firms, and corporations. Each form of business has a unique set of advantages and disadvantages.

What Is A Business Registration?

A business registration is a document that is filed with the registrar general department of Ghana in order to establish the legal existence of that business entity. The registration may be with the state, county, municipal government, or national or international organization. 

Depending on the type of business registration in Ghana you want, business registration may include such information as the name of the business, the address of the business, the name and contact information of the proprietor, and the type of business enterprise.

The additional information you could be required to submit includes the name and contact details of the agent for the service of process, the name and contact details of the business's lawyer, and the federal tax identification number of the company. 

Different Types Of Business Registration In Ghana

The main method used by business owners to incorporate their business in Ghana is company registration. Entrepreneurs must ensure they select a business type that fits their activities because there are different types of business registration in Ghana. According to the Companies Act, 2019, Ghana offers seven alternative business structure options:

1. Sole proprietor
2. Partnership
3. Corporations 
4. Company Limited by Shares
5. Unlimited Liability Company
6. Company Limited by Guarantees
7. External Company

Sole Proprietorship Business

A sole proprietorship is a company where the operations are managed by just one person. Since the owner and the business are seen as a single entity, their gains and losses are entirely their own responsibility. Also, the owners' names appear on the registration and on tax returns and accounting reports, creating an indefinite amount of legal obligation for the corporation.

Nevertheless, it is the simplest type of business to start and maintain in Ghana. Owners of home businesses appreciate this because it doesn't demand a lot of capital or regulatory compliance. To register as a Sole Proprietor, the following criteria must be fulfilled:

1. An applicant may pick up a prescribed Form A from the in-house bank or download
2. Submit filled forms at the Business Names Registration Counter for Verification and Capturing or Online
3. Registrar Examines, Approves, and issues Business Name Registration Certificate
4. CERTIFIED TRUE COPY(CTC) of Form A

Partnerships 

A partnership is made up of at least two and up to twenty individuals who operate profitable businesses. Partners who have agreed on the role and profit sharing are the ones who manage operations in partnerships. The partnership deed is a verbal agreement that specifies the roles, responsibilities, authority, and number of shares held.

The following are the requirements to form a partnership:

1. An applicant may pick up a prescribed Form A from the in-house bank or download
2. Provide stamped Partnership agreement at Land Valuation Board
3. Submit filled forms at the Partnership Registration Counter for Verification and Capturing or via Online
4. Registrar Examines, Approves, and Issues Certificate of Incorporation

Corporation Incorporation

A corporation is the most common type of business registration in Ghana. It is a legal entity that can own property and make contracts. Corporations are taxed differently than individuals. Corporations also have the ability to issue stock, which gives them the ability to raise money by selling shares.

The following prerequisites need to be met in order to register as a corporation:

1. Provide a Consent letter from a certified auditor by the Institute of Chartered Auditors and must be registered as a Sole Proprietor/Partnership
2. Form 3 must be witnessed by Commissioner for Oaths/Notary Public/Self-Declared
3. A minimum of two directors is required. Each must submit Statutory Declaration & Consent Letter with the registration Form
4. Submit filled forms at the Company Registration Counter for Verification and Capturing or Online
5. Registrar Examines, Approves, and Issues Certificate of Incorporation

Company Limited by shares (Private & Public)

An organization with between two and fifty members that has a set of goals for either a profit or non-profit basis is known as a Company Limited by Shares. The owners of the firm are the shareholders, and the officers are the directors, secretaries, and auditors and its liability is limited.

The following requirements need to be met in order to register as a corporation:

1. Provide a consent letter from a certified auditor by the Institute of Chartered Auditors and must be registered as a Sole Proprietor/Partnership. 
2. Form 3 must be witnessed by the Commissioner for Oaths/Notary Public/Self-Declared. A minimum of two directors is required. 
3. Each must submit a Statutory Declaration & Consent Letter with the registration Form.
4. Submit filled forms at the Company Registration Counter for Verification and Capturing or Online. 
5. Registrar Examines, Approves, and Issues Certificate of Incorporation

Unlimited Liability Company

The structure of unlimited liability types of business registration in Ghana is identical to that of a limited liability corporation, with the exception that its owners' responsibilities are unbounded. Typically, professional organizations like law firms, auditing firms, and architectural firms register it.

According to the Companies Act, the following requirements must be satisfied in order to be certified for these types of business registration in Ghana:

1. Provide a consent letter from a certified auditor by the Institute of Chartered Auditors and must be registered as a Sole Proprietor/Partnership
2. Form 3 must be witnessed by Commissioner for Oaths/Notary Public/Self-Declared
3. Submit filled forms at the Company Registration Counter for Verification and Capturing or via Online
4. Registrar Examines, Approves, and Issues Certificate of Incorporation

Company Limited by Guarantee (Private & Public)

A company limited by guarantee is one of the types of business registration in Ghana that is similar to a corporation. However, in a company limited by guarantees the liability of its members is limited to amounts that they respectively undertake or guarantee to contribute to the assets of the company in case of liquidation.

The company is also not permitted to make profits, for example, social enterprises, non-governmental organizations (NGOs), churches, and charities. To set up a Company Limited by Guarantees, the following criteria must be met: 

1. Provide a consent letter from a certified auditor by the Institute of Chartered Auditors and must be registered as a Sole Proprietor/Partnership 
2. A minimum of two directors/executive members is required. 
3. Each must submit Statutory Declaration & Consent Letter with the registration Form
4. A minimum of one subscriber is required.
5. Secretary (Corporate Body Acting as A Secretary/ Individuals) required.
6. Private Company Limited by Guarantee can have 2 to 50 members
7. Form 3A must be witnessed by the Commissioner for Oaths/Notary Public/Self-Declared.
8. Submit filled forms at the Company Registration Counter for Verification and Capturing or Online. 
9. Registrar Examines, Approves, and Issues Certificate of Incorporation

External Company

An external Company is a branch of an existing company usually registered by a Local Manager on behalf of the company registered outside the jurisdiction of Ghana, that wants to own a branch or place of business in Ghana. 

Note that the Local Manager must at all times be resident in Ghana and all supporting documents of the External Company have to be in English Language and notarized by a notary Public in the Country of Incorporation.

To register an External Company in Ghana, you must meet the following criteria:

1. A CERTIFIED TRUE COPY(CTC) of the Memorandum and the Articles of the Association of the Company registered outside Ghana in English
2. A CERTIFIED TRUE COPY (CTC) of the Certificate of Incorporation.
3. Power of Attorney of Local Manager
4. Constitutions of the External Company
5. All these are duly endorsed by the Ghana Mission in the Country if any or the nearest country where there is Ghana Mission.
6. Submit the completed Forms at any RGD office or process them Online 
7. The Registrar issues a certificate of Registration Form 20 & 21

The Cost Of Registering A Real Estate Business In Ghana

The cost of registering a business in Ghana can vary depending on the types of business registration in Ghana. For example, registering a Sole Proprietor business can cost around GH¢85, while registering an Unlimited Liability Company can cost around GH¢330. The cost also depends on the complexity of the registration process.

The table below shows the cost of registering a business in Ghana.

Benefits Of Registering A Real Estate Business in Ghana 

You can register any of these types of business registration in Ghana easily with the help of the Registrar General Department. Their experts will take care of the entire process and answer all your questions. However, there are a number of benefits to registering a business in Ghana, including;

1. The ability to obtain a business license and tax ID in Ghana.
2. The ability to establish a company name and trademark in Ghana.
3. The ability to open a bank account and receive business loans in Ghana.
4. The ability to recruit employees and establish a company culture in Ghana.
5. The ability to market the company in Ghana.
6. The ability to receive government assistance in the form of grants and subsidies.
7. The opportunity to develop a business empire in Ghana.