TerraLex is pleased to announce its recent digital publication of a Cross-Border Guide to Business Investment in Africa. Africa’s emerging countries form an integral part of any successful global business strategy and offer tremendous growth opportunities for multinational companies and global entrepreneurs alike. The following guide provides important information businesses need to know while considering their investment into the region.
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The registration of the proposed entities is done through the Registrar of Companies. The processes involved are: • Applying for a Tax Identification Number from the Ghana Revenue Authority • The filling and completion of the prescribed form and delivery of same to the Registrar of Companies. • The payment of prescribed fee • The issuance of a Certificate of incorporation. • Registration with the Ghana Investment Promotion Centre (GIPC) where there is Foreign Participation. The registration process takes about 2 to 8 weeks after submission of the application.
There are no exchange control laws per se. However, individuals and businesses are required to conduct foreign exchange transactions through authorized dealers, such as banks and licensed foreign exchange bureaus. Also, businesses cannot price, advertise, or sell goods and services in Ghana in foreign exchange, except with the permission of the Central Bank of Ghana.
No, there is no such requirement. However, the Companies Act 2019 (Act 992) requires that at least one of the Directors of a company shall, at all material times, be resident in Ghana.
No, there is no such specific requirement. However, there may be local content requirements for specific sectors including the oil and gas sector
Annual Returns – Annual Company returns, Tax returns, Monthly Social Security and National Insurance Trust (SSNIT) Returns, GIPC Returns).
Foreign nationals wishing to work in Ghana are required to obtain a work permit from the Ministry of Interior through the Ghana Immigration Service.
The process of obtaining a work permit is by filling out the appropriate application form and attaching supporting documents such as: • Application letter from applicant or organization engaging the applicant • CV/Educational Certificates • Marriage Certificate (in case applicant is married to a Ghanaian) • Letter of support from spouse (Ghanaian) if applicable • Company registration/objects of company that intends to employ the applicant • Certificate of commencement of business • Tax clearance certificate • Letter of appointment
Where the company is registered with the GIPC, it may, depending on the level of investment, be entitled to up to four automatic expatriate quotas, without having to apply through the Ministry of Interior.
Foreigners may own land but for a maximum leasehold tenure of 50 years.
Transferability in freely convertible currency of
(A) dividends or net profits attributable to the investment made in the enterprise;
(B) payments in respect of loan servicing where a foreign loan has been obtained;
(C) fees and charges in respect of a technology transfer agreement and the remittance of proceeds, net of all taxes and other obligations, in the event of sale or liquidation of the enterprise or any interest attributable to the investment in the enterprise.
Tax exemptions, tax rebate and Tax holidays
Guarantee against expropriation
Protection Against Unfair Competition Act, 2000 (Act 589). There may be specific Competition laws/rules applicable to specific industries.
Yes. Ghana is a signatory to the New York Convention. Thus, courts of Ghana give effect to private agreements to arbitrate and recognize and enforce arbitration awards made in other contracting states.
Enforcement of Arbitral Awards are done by applying to the High Court for recognition and enforcement of the award.
Ghana Investment Promotion Centre Act 2013 (Act 896)
The investment climate in Ghana is positive and tends to be attractive to foreign investors.
Ghana has a relatively well-developed infrastructure, including road network, stable telecommunication structure, constant flow of basic amenities such as electricity and water.
Ghana’s current debt levels are high, with a rather low revenue base. This has a limiting effect on the fiscal space, thus making Ghana vulnerable to external shocks. The country recently successfully restructured its domestic debt and is currently renegotiating a restructuring of its external debts. The country recently commenced an IMF Programme. The IMF Programme has boosted Investor-confidence and set the country on a path to economic recovery.
Disclaimer: This guide contains summaries of general principles of law. It is not a substitute for specific legal advice and should not be relied upon in relation to the application of the law or subject matter covered.
