Guide on Business Registration In Ghana (RGD Name Search)

Do you want to register your business and have you been looking for how to go about RGD name search in Ghana? Here we give you all you need about it.

There is no gainsaying the fact that Ghana has become a vibrant emerging economy in Africa. There is also no doubt that the country is becoming one of the giants of West Africa economically.

A good economy is one of the factors that attract investors to establish businesses in a country. The growth of the Ghanaian economy over the years is a contributing factor to the influx of companies into the country.

However, it is good to note that no business in Ghana can be legally recognized unless it is registered. This is the main reason why RDG name search is vital to aspiring business owners in the country.

So as a business owner or an aspiring one, this post on business registration as well as RGD name search in Ghana is essential. Carefully explore the post to the end.

Step-by-Step Guide on Business Registration In Ghana

The first step in getting your business registered is to apply at the Registrar General Department (RGD). There are five different forms of business recognized by the law; they are:

• Sole Proprietorship
• External Company
• Guarantee Limited Companies
• Unlimited Liability Companies
• Companies Limited by shares

The investor or individuals seeking to register a business must choose any one of the forms of business listed above.

You must select the form which best explains your business. The registration process used to be very tedious and enervating for business owners until recently when there was automation in the process.

Now people can proceed to register their businesses without any worry about the process. Click here to access the form for GHS 10.00 at the RGD.

Steps Involved in the Registration Process

After contacting the Registrar General Department, the following are the critical steps of the registration process.

Name Search with the RGD

It is mandatory by law to carry out a name search for your business. Moreover, this is taking place to prevent duplication of a name, i.e. repeating the name of an already registered company (which is not acceptable as it may bring about confusion).

So, if another company has already registered your intended name, you will have to seek another business name.  Meanwhile, there is no room for business names that include offensive words or quote or violates any trademark.

It is therefore essential to ensure that the business name bears some semblance to the nature of the business.

Registration of the Taxpayer Identification Number (TIN)

The next step is to get a Taxpayer Identification Number. This is important for all the individuals associated with the business such as the company directors, secretaries, as well as shareholders.

Even the company itself as an entity must have a Taxpayer Identification Number. Registration of your TIN is an essential requirement if you want to seek a business registration.

The necessary forms for TIN registration can be accessed here. TIN registration is entirely free for any intending businessman, and the registration process is quite straightforward as well as stress-free.

After downloading the necessary forms, you will need to fill the forms appropriately, and also attach a copy of your photo ID which may be either an international passport or driver’s license.

You can proceed to submit it at the Ghana Revenue Authority office afterward.

After following the due process, it takes about 24 to 48 hours for a TIN to be created. In case an individual has more than one business, there is no need for another TIN as the same TIN is applicable for the registration of other businesses.

Download, Fill, and Submit Company Incorporation Forms

The next step after registering the Taxpayer Identification Number is to download and complete the forms listed below;

• Returns of Particulars of the company limited by the shares registration form
• Form 4 for company registration
• Regulations of a Private company limited by shares

The essential information for the completion of these forms includes;

1. Company name
2. The company’s official address
3. Postal address of the company
4. Principal place of the business
5. Business objects or activities
6. Contact numbers and emails
7. Auditor’s Details
8. Details of Issued and authorized shares
9. Stated Capital
10. The shareholding structure of the company
11. Complete details of the directors, secretaries, and shareholders. The required information is inclusive of their dates of birth, nationalities, residential and contact addresses, and occupations.

Under the Ghana Companies Act 179, companies at the point of registration must produce at least two initial directors as well as a secretary. Although, at least one of them must be a resident of Ghana.

All the directors, secretaries as well and shareholders must append their signatures on the relevant documents before the submission of the forms.

Pay the Required Statutory Fees

After the submission of the incorporation forms, according to the law, the business owners are to pay some statutory fees such as Stamp duty, Incorporation as well and filing fees.

Stamp Duty

According to company law, companies are to pay 0.5% of the documented capital. The minimum amount of documented capital for locally owned businesses is GHC 500, while that of foreign-owned ones varies.

The various categories are;

• For businesses with 100% foreign ownership, the minimum capital is $500,000
• The minimum capital for a joint venture between a foreigner as well as a Ghanaian is $200,000
• For a trading enterprise, the minimum capital is $1,000,000
• An amount of GHC 330 goes directly to the Registrar General Department for Incorporation. Then filing takes place upon the submission of the forms.

Collection of Registration Certificate

The final stage of business registration involves the collection of registration certificates. Once you fill and submit the necessary documents, you should expect the certificates two weeks after the submission date.

The certificates to be collected include the following;

• Certificate of incorporation
• Certificate of commencement
• Form 3 & 4
• Company regulations

The certificates are proof that the company is registered, legally recognized, and duly authorized to commence business in Ghana.

The documents should reflect some vital information about the business such as the business name, the object of trade, as well as the business address.

It should also reflect the directors’ details, company TIN details as well and shareholders’ information.

Little wonder the Ghanaian economy is one of the fastest-growing in Africa. Aside from the presence of an enabling environment, which is a result of the existing infrastructure, the country also makes the process of new business registration less cumbersome by removing the bottleneck.

Benefits of Business Registration In Ghana

• Legal Recognition: Business registration provides your enterprise with legal recognition, establishing its legitimacy in the eyes of the law.
• Access to Funding: Registered businesses often find it easier to access financial support, loans, and investment opportunities from banks and other financial institutions.
• Business Contracts: Registration allows your business to enter into contracts and agreements with other entities, fostering trust and credibility.
• Brand Protection: It helps protect your business name and brand, preventing others from using similar names that could create confusion in the market.
• Tax Benefits: Registered businesses may be eligible for certain tax benefits and incentives, contributing to financial advantages.
• Government Tenders: Registration enhances your eligibility to participate in government tenders and contracts, opening up additional business opportunities.
• Limited Liability Protection: For entities like Limited Liability Companies (LLCs), business registration provides a level of personal liability protection for the owners.
• Global Recognition: A registered business is often viewed more favorably by international partners and customers, facilitating global business interactions.
• Business Continuity: Registration establishes a formal structure, contributing to the stability and continuity of your business, especially in the case of ownership changes or transitions.
• Employee Benefits: Registered businesses may find it easier to attract and retain talented employees, as job seekers often prefer working for recognized and legitimate entities.

Conclusion

Navigating business registration in Ghana, particularly the RGD name search process requires careful attention to detail. Follow the guide meticulously, complete the necessary steps, and ensure compliance with regulations. By doing so, you’ll pave the way for a successful business registration in Ghana, setting the foundation for your entrepreneurial endeavors.