Although an expansion to Ghana is a very exciting time for your company, there are many challenging aspects you’ll have to address before making the move. You’ll need to set aside weeks or possibly months to handle the entire Ghana subsidiary setup process before you can start working in the country.
G-P makes it easier and faster for companies to expand globally. As a global Employer of Record (EOR), you won’t have to go through the lengthy process of company registration in Ghana. When you partner with us, we’ll hire employees on your behalf so you can begin working in minutes, not months. Our goal is to manage risk and assure compliance, so that you can run a successful company.
How to set up a Ghana subsidiary
When you need to set up a Ghana subsidiary, we recommend researching certain aspects of the process before beginning incorporation. Start by finding a location that’s friendly to international investment and that offers the right availability, costs, and other factors. Since different areas can have their own Ghana subsidiary laws, you should work with a consultant who can help you find the best location for your company.
The Ghana subsidiary setup process also varies by entity. You can incorporate as one of several types of entities, including a limited liability company (LLC), public limited company, branch office, or free zone company. An LLC is the most popular option since it provides the flexibility and freedom to work in Ghana like a resident company.
Setting up your Ghana subsidiary as an LLC includes the following steps:
- Registering your office, principal place of business, and postal addresses
- Authorizing your number of shares and issuing them
- Writing down the names and addresses of all shareholders
- Hiring a company secretary
- Filing and presenting documentation on the name of the company and the nature of the business
- Filing and documenting information on the minimum of 2 directors
- Filing and documenting the name and address of your auditor
- Obtaining certificates of incorporation and commencement of business
- Obtaining a certified true copy of the company’s regulations
Ghana subsidiary laws
You’ll need to follow the subsidiary laws related to the entity you choose. For example, LLCs require at least 1 shareholder and 2 directors. All 3 can be citizens from other countries, but at least 1 of your directors has to live in Ghana. You’ll also need a minimum of USD 500,000 in paid-up share capital if you’re incorporating as a wholly owned international company. That number increases to USD 1 million if you’re setting up your subsidiary as a trading company. Citizens from other countries investing in a joint venture company with a Ghanaian citizen must contribute USD 200,000.
All LLCs in Ghana must appoint a company secretary and a licensed local auditor who can audit annual financial statements. You also need a registered office with a post office box for all communication and notices. All statutory and accounting records should be kept in your registered office per Ghana’s subsidiary laws.
Benefits of setting up a Ghana subsidiary
Although setting up your Ghana subsidiary can take up to a year, you’ll benefit from working in the country. As an LLC, you won’t have to worry about liability between the parent company and subsidiary, as both can operate somewhat independently.
The truth, however, is that you’ll get more benefits working with an EOR like G-P. Instead of establishing your own entity, you can use our Ghana subsidiary to work in the country. We’ll handle everything from payroll and taxes to hiring talented employees for you.
Other important considerations
If you decide to set up your own subsidiary in Ghana, you should plan ahead for success. Start by determining the amount of time and money you’ll need for the incorporation process. Then, clear your schedule and set aside the appropriate funds. You should also hire an expert in Ghana subsidiary laws who can help you stay compliant.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 global employment platform to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.