What are the key laws relating to investment in Ghana?
The Ghana Investment Promotion Centre (GIPC) Act, 2013 (ACT 865) applies to all local and foreign investments in Ghana. Other relevant laws include but are not limited to the following;
- Technology Transfer Regulations (L.I 1547)
- Companies Code, 1963 (Act 179)
- Banking Act, 2004 (Act 673)
- Free Zones Act, 1995, (Act 504)
- Environmental Protection Agency Act, 1994, (Act 490)
- Ghana National Petroleum Corporation Law, 1983, PNDCL 64
- Public Procurement Act, 2003, Act 663
- Minerals and Mining Amendment Act 1994 (Act 475)
- Constitution of the Republic of Ghana. 1992
What are possible corporate organization forms in Ghana?
Ghana’s Companies Code states that an incorporated company may be either:
- A company limited by shares (Ltd). The members’ liability is limited to the amount if any, unpaid on shares they hold
- A company limited by guarantee – the members’ liability is limited to the amount they have agreed to contribute to the company’s assets if it is wound up
- An unlimited company – there is no limit to the members’ liability.
A company of any of the foregoing types may either be a private company or a public company.
Other business entities include different types of Partnerships.
What is the minimum requirement for investing in Ghana?
This provision can be found in Section 28 of the GIPC Act.
For a joint venture, the minimum capital requirement is US$200,000.00 in cash or equivalent in capital goods relevant to the investment or a combination of both by way of equity participation. If the joint venture is between a foreign investor and a Ghanaian citizen, then the Ghanaian must not have less than 10% equity participation in the Enterprise.
For a 100% foreign owned company, the minimum capital requirement should be US$500,000.00 in cash or capital goods relevant to the investment or a combination of both by way of equity participation
For trading, the minimum capital requirement for an investor is US$100,000.00 in cash or goods and services relevant to the investments. A foreign investor involved in trading must also employ at least twenty (20) skilled Ghanaians in the trading enterprise.
Is a foreign investor allowed by law to own 100% shares in a company?
100% ownership of companies is allowed by law, so far as the investor meets the minimum equity requirement of $500,000, or as in trading $1,000,000.
Which products are in demand in Ghana?
The most commonly imported products into Ghana include, but are not limited to the following:
Rice, sugar, corn, wheat, meat (frozen/canned), fish (frozen/canned) cooking oil, clothing, medical equipment and pharmaceutical products, machinery and parts, chemicals, air-conditioning and refrigeration units, agricultural equipment, dairy products, confectionery, condiments/sauces, wines, alcoholic beverages, cosmetics, computers and accessories, electronic gadgets, motor vehicles and spare parts (new and used), vehicle tires, books, building materials.
The leading sectors for Ghanaian import and Investment include:
Telecommunication equipment, computers and peripherals, automobiles, electrical power systems (generators) construction and earthmoving equipment, mining equipment, as well as food processing and packaging equipment.
Do I need an Import Declaration Form (IDF) in order to ship goods from my country to Ghana
An Import Declaration Form (IDF) is required at the port of clearance in Ghana as part of the customs documentation for clearance of goods. Because these forms are only needed at the port of clearance, they are only available at customs posts in Ghana. We have received several reports from shipping agents and/or their clients indicating that shippers in the United States and Europe are refusing to accept shipments to Ghana that are not accompanied by completed IDFs. We wish to emphasize that the Import Declaration Form (IDF) is not required at the port of shipment, but rather at the port of clearance in Ghana, at which point the consignee of the shipment is required to complete this as one of the documents required by Ghana Customs in the clearance process.