One of the smartest moves to make after settling on a name for your business is to get it registered at the Registrar General’s Department (Ghana).
In the world of business, one can run different kinds of business ranging from production of farm products, catering and hospitality services, sale of beauty and cosmetics, financial and insurance services, among others. In registering a new business, one needs to determine what form of business they will be registering as and this depends to a very large extent on factors such as the number of owners, purpose of the business, kind of business to be run, just to mention a few.
In this article, we will touch on five common forms of businesses one can register his or her new business as, in Ghana and as well touch on a few factors to consider when choosing a particular form of business:
1. Sole Proprietorship: This is by far one of the commonest forms of business in Ghana. It is easy to form and suitable for businesses owned and managed by only one person. This could be a side businesses or a small business. With a sole proprietorship business, the owner is the same as the business and not necessarily seen as separate entities. This form of business does not require complex legalities and it is easy to form, organize and operate.
2. Company Limited by Shares: This form of business requires you to have at least 2 (acting) directors and up to 5 directors, a company secretary (who may either be an individual or a corporate entity) and at least one shareholder, also known as the owner of the company (shareholders can either be individuals or corporate entities or a combination of the two) . With this form of business, the liability of the shareholders (owners) is limited to the shares or amount contributed by the owners.
3. Company Limited by Guarantee: This form of business is suitable and ideal for organizations which do not have a profit making motive. For example, non-governmental organizations, clubs, associations, societies, churches. Just like a company limited by shares, you need a minimum of 2 (acting) directors and up to 5 directors, a secretary.
4. Incorporated Partnership: This form of business is suitable when two or more individuals come together to do business and they directly share management and profits from the business. Just like a sole proprietorship business, the liability of the partners is unlimited, up to the personal wealth of the partners and it is between individual persons rather than corporate entities as seen in a company limited by shares.
5. External Company: This is a corporate entity that is formed outside Ghana but is set to have a registered and established place of business in Ghana. External companies will be registered for reasons such as establishing the presence of a foreign company in Ghana, bringing close a product or service produced in the home country of a company to our country (Ghana) In this instance, the external company set here in Ghana is bound by the tax laws of Ghana.
Interested in getting further clarification, assistance or advice about the forms of business you can register your business as? We are just a phone call away. Call us now on 0302951447 or 0248586397 or send all inquiries to [email protected] for prompt assistance.
Visit www.launchapp.co to start with your business registration process.