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LAND REGISTRATION

Yes.

a. Registration of documents relating to landed property is compulsory in Ghana.

b. Registration confers priority on the registrant. It confers priority over all other registrations affecting the same land.

c. Registration serves as notice to the whole world that you own the property.

d. When you register your title to a land, all other interests acquired after your registration will be subservient to your title.

e. Registration will however not cure a defective title. Thus, if your grantor does not have good title to the property, registering the property will not make the title good.

Deed Registration
a. This is the registration of any document affecting a land in Ghana. b. It is compulsory and required under Ghana law to register a document affecting land. c. A document to be registered must be proved on oath and must contain sufficient description of the land.
Title Registration
a. Registration of title to land is the foremost evidence of title to a land b. Registration of title to land has the potential of curing defects in title c. Registration is final and conclusive evidence of title and no subsequent claim inconsistent with the title shall defeat the title.

The body authorized by law to register lands in Ghana is the Lands Commission. Registration of land involves: a. The conduct of a search at the Client Service Access Unit (CSAU), (formerly Lands Valuation Board), on the property to be registered to ascertain the previous ownership of the land and any historical transactions affecting the land; b. Assessment and payment of stamp duty on the instrument/deed of transfer at CSAU; c. Stamp duty is assessed between 0.5% to 1% of the value of the property; d. The stamped document is then submitted at the CSAU for application for a land title certificate.

The process may take up to a year or more.

Various factors influence the cost of the registration process including: a. the size of the property b. the location c. the value of the land d. other costs such as stamp duty which is valued between 0.5% to 1% of the land’s value

COMPANY REGISTRATION

A business may register and operate as any of the following entities:

a. A Sole Proprietorship – A sole proprietorship is an unincorporated business usually run by one individual in his or her legal name, or under a trade name. A sole proprietor who adopts a trade name must register and renew the registration annually. A sole proprietor is prohibited from carrying out business in the finance, banking or communications sectors. The liability of a sole proprietor is unlimited.

 

b. Partnership – A partnership is an association of two or more individuals (not exceeding twenty) carrying out business jointly for the purpose of making profit. A partnership must be registered. The members of a partnership are referred to as “partners”, and the terms and conditions of their relationship are documented in a partnership agreement.

c. Company – A company refers to an entity incorporated under the Ghana Companies Act, 1963 (Act 179) which upon incorporation acquires a separate legal identity distinct from its members, officers, and directors. Under Ghanaian law, an incorporated company may be any of the following and either of these may be a private or public company:

i. Limited Liability Company – The liability of members in this type of company is limited to the amount unpaid, if any, on the shares they have subscribed to.

ii. Company Limited by Guarantee – This type of company is prohibited from registering with shares, creating or issuing shares. The liability of members of such companies are limited to the amount the members may agree to contribute to the assets of the company in the event of the company being wound up.

iii. Unlimited Company – This refers to companies that have no limit on the liability of their members. Although it is unusual for companies to incorporate with unlimited liability, some professional services companies are required to operate their business under this type of company.

To incorporate a company, one must comply with the requirements for incorporation stipulated under the laws of Ghana. These include:

a. a copy of the proposed regulations of the company;

b. a minimum of two directors, each being above 21 years. At least one of the directors must be present in Ghana at all times;

c. members of the company;

d. an auditor;

e. number of shares and subscription details if applicable;

f. the minimum stated capital as prescribed under law; and

g. capital duty, which is currently 0.5% of the company’s stated capital.

The minimum legal age in Ghana is 18 years. Thus only a person above the age of 18 years can be a shareholder. However, persons under the age of 18 years can be beneficial owners of shares held in trust for such persons

To be a director in Ghana, a person must be of sound mind, be an individual above 21 years of age, and should not be an undischarged bankrupt. An artificial being such as a company, cannot act as a director. A person may also be considered incompetent to act as a director if that person is deemed to have been associated with acts of fraud. There may be further requirements placed on directors of companies in specific industries.

No. A foreign national who satisfies the requirements for competency under Ghanaian law can act as a director.

Any competent individual or a body corporate appointed by the directors can act as a company secretary.

Shares issued in Ghana are of no par value. This means that the shares are issued without a nominal value being assigned to the shares in the company’s regulations.

The authorised number of shares is as determined by the shareholders and thereafter stated in the regulations of the company. This number may be however be amended.

Certainly. This is known as an external company. That is, a body corporate formed outside Ghana that has an established place of business in Ghana. The requirements for registering an external company in Ghana are: a. an established place of business in Ghana; b. the appointment of a local manager; c. the provision of a certified copy of the Regulations of the foreign company; and d. the provision of certified copies of the particulars of the foreign company.

Any person who is deemed competent to act as a director under the law can act as local manager for an external company or a branch office.

GHANA INVESTMENT PROMOTION CENTER (GIPC) REGISTRATION

All enterprises in the country with foreign participation are required to register with the GIPC.

a. Registration with the GIPC entitles a company to a fixed number of employer-sponsored visas that allow migrants to work, based on the company’s paid-up capital.

b. Special incentive packages are negotiated with the board of the GIPC from time to time for the promotion of strategic or major investments.

c.Absolute protection from any legal requirement that compels a person who owns all or part of the capital of a company to cede that interest to any other person, or nationalization or expropriation.

d. In a dispute between a GIPC-registered company and the government, where all efforts to reach an amicable settlement fail, the aggrieved party may opt to resolve the dispute through arbitration.

It takes 5 working days from the date of receipt of the following: a. A completed registration form with all relevant documents attached b. Notification of compliance with the minimum foreign capital requirement c. Required registration fees.

a. A wholly owned foreign company will cost approximately GHS 16,800;

b. A Joint Venture will cost approximately GHS 10,500; and

c. External company will cost approximately GHS 42,000.

Presently, the minimum foreign capital requirements are:

a. Joint venture: US$200,000

b. Wholly-owned foreign business: US$500,000

c. General trading company: US$1,000,000

Yes. The registration has to be renewed every two years and costs around GHS2,730 for joint ventures and foreign owned companies.