DOING BUSINESS IN GHANA

F A Q

1.     Why   should I invest in  Ghana?

 

Ghana   offers investors a forward leaning, business-enabling environment, with features such  as:

      • A stable and predictable political environment

      • No  discrimination against foreign-owned businesses

      • A free-floating exchange rate regime and guarantees that investors can  

        transfer profits out of Ghana

      • Investment laws that protect investors against expropriation and  

        nationalization

      • Comparatively less prevalent incidence of corruption than in other

        countries in the region

 

 

2.    How  is the general tax  regime like for Companies  in Ghana?

Companies  operating in Ghana  are liable to pay varied levels of taxes depending on the sector of operation, and the location of the project and whether the company is listed on the   Ghana Stock  Exchange or is a Free Zone.  Taxable profits are based on profits declared in audited accounts subject to adjustments made for capital allowances.

 

3.    What   incentives do licensed free zone   companies get?

 

There are monetary  and non-monetary  incentives. The monetary incentives offered

include:

 

    • 100%   exemption from payment of direct and indirect duties and levies on  

       all  imports for production and exports from free zones.

    • 100%  exemption from payment  of income tax on profits for 10 years which  

      will not exceed 8%  thereafter.

    • Total exemption from payment of withholding taxes from dividends arising

      out of free zone investment.

    • Relief from double taxation for foreign investors and employees where

 

Ghana  has a double taxation agreement with the country of the investors or employees. Non-monetary  incentives include:

 

    •  No import licensing requirements.

    •  Minimal customs formalities.

    •  100%  ownership of shares by any investor — foreign or national in a free

       zone enterprise is allowed.

    • There are no conditions or restrictions on repatriation of dividends or net

       profit, payments  for foreign loan servicing, payments of fees and charges for        technology transfer agreements and remittance of proceeds from sale of any

       interest in a free zone investment.

    •  Free Zone  investors are permitted to operate foreign currency accounts with

       banks  in Ghana.

    •  At least 70% of annual production of goods and services of Free Zone  

       Enterprises must be exported, consequently up to 30% of annual production

       of goods  and services of a free zone enterprise are authorized for sale in the  

       local market.

    •  Free  Zone investments are also guaranteed against nationalization and

       expropriation.

 

4.   How  does  a company   become  a Free  Zone    Company? Or  what are the procedures to become  a free zone company?

 

Investors are required to go through the following application procedure to obtain a Free Zone license:

 

    •  Incorporate a  company in  Ghana with the Registrar General's Department

    •  Obtain and complete the  GFZB Application Form (US$ 100) and  submit with

        the following:

              i. Business Plan

                 Copy of Certificate of Incorporation

                 Copy of Certificate to Commence  Business

              iv. Copy of Company's code

              v. Evidence of possession/lease of property or intent to acquire property

              v. MOU with  potential clients.

              vii. Environmental Protection Agency Permit

              viii. Evidence of Funding/Capital Transfer

              ix. Any other relevant document

  •   After completing the application and submitting it with all the necessary and

      required documents, and  upon receipt, GFZB  will notify the prospective

      investor of the status of his/her application for license within 28 working

      days.

 

5.    Does  Ghana  offer any sovereign   guarantee for big infrastructural

development?

 

Ghana does not offer sovereign guarantee on big infrastructural development.

Provides an EXCROW    Accounts where  funds are kept with the main aim of repaying what  is owed.

 

6.    Does  Ghana    promote Public-Private Partnership?

 

Ghana  promotes Public Private Partnership concept.

 

7.    What  steps are  being taken to solve the energy  challenges in Ghana?

 

The  energy challenges have  been identified and Ghana is requesting investors to

assist in the distributions sector.

 

 

8.  Is   there  protection   for  investors   against  nationalization   of  their

businesses?

 

Ghana's     investment laws   protect  investors  against  expropriation   and

nationalization. Moreover,  Ghana is a signatory to international Convention on

the anti-nationalization of foreign business.

 

9.    How   does  Ghana  Government   procure  goods and  contracts?

 

Ghana  has  a   comprehensive public  procurement system in  place that fosters

competition,  efficiency,  transparency  and    accountability. Depending   on   the

circumstance, goods,  works or services financed in whole or in part from public funds are  procured by competitive tendering, two state tendering, restrictive tendering or single source tendering.

 

10.   How   many banks do we have in Ghana?

Ghana has a wide range of banking services providing competitive international banking Products