If you want to do business in Ghana, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC which is the most common company structure in Ghana.
Ghana taxes corporate income made internationally in the same way that earned inside the country. The prevailing tax rate for offshore income, from our research, but seek professional advice, is 25%. The country does not have known exemptions to transfer in foreign earned profits. The headline corp. tax rate is 25%. This ranks Ghana as 103th overall with regards to corp. taxation rate internationally.
The valued added tax rate in GH is 15.00%, which ranks Ghana as 98th overall in terms of VAT taxation rate internationally. In terms of other taxation, an employer will contribute 13.00% to the equivalent of a social security fund and an employee will contribute 5.50%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 88hours. Contributing to this is the number of yearly labor tax payments, which is 14 in GH.
Thin capitalization standards are in effect. Thin capitalisation refers to any type of requirements on companies' debt-to-asset ratios. Dividends paid by a resident company to another resident entity are subject to 8% withholding tax. However, there are certain exemptions if the company owns at least 25% of the voting power of the payer company. Dividends are payments of earnings of the business, established by the board, to a class of its shareholders. Dividends can be issued as stock, cash, or property. Capital Gains are considered business income and taxed at CIT standard rate. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.
The interest withholding tax rate is estimated at 8%. Which means that the taxman expects LLC's to pay tax on at least 8% of money remitted abroad on interest payments. The dividends withholding tax rate is 8% This means that the tax authorities expects relevant legal entities to automatically withhold 8% of dividend payments to non-residents. Royalties are subject to a withholding tax of 15%. This means that payments on royalties made by a resident entity to a non-resident entity may be taxed at 15%.
There is no known tax on wealth in Ghana. There are no known inheritance and transfer taxes in GH. There is a property tax. There are no widely used R&D initiatives that provide breaks on taxation here.
The above is not tax or legal advice for your company's situation. Incorporations.io can to reference you to a lawyer in Ghana who can give you the proper advice and help you need. Want to work together? Click incorporate now if you are in a hurry, or press the free consultation button above.
It takes approximately 40 hours to file and prepare documents for a Ghana Mixed (Common and religious law).
The corporate tax is approximately 25% which is 103 in the world.
Owners of a company in Ghana are not allowed to carry back a loss and may be allowed to carry forward a loss for 3 years.
The vat rate in Ghana is 15% which ranks 78 in the world.
When examining a jurisdiction in which to incorporate, the first thing to look at is the legal code. The underlying law in Ghana is mixed (common and religious law) law. You will want to get some local advice as to how to best structure a company in Ghana. Electronic signatures are permitted.
The abbreviation GH is for Ghana and the most common company type type in Ghana is a LLC.
The amount you'll have to wait is about 3 weeks to put together the paperwork and file a LLC in GH. The types of consideration you can use to capitalize your company is often GHS and USD legal currency.
Yes, one is allowed to re-domicile a LLC from GH. You are usually allowed to change the jurisdiction of the company, pending certain procedures.
There must be at least This means it is not possible for you to own a LLC in Ghana as a sole shareholder. You must have other shareholders, they can be nominees or de facto shareholders. Corporate Shareholders are are cannot be utilized Foreign ownership is tolerated, up to 60% of the total equity of the company.
There is a requirement to have at least 2 directors. Speaking of shareholders, corporate directors are not permitted. Directors are disclosed publicly. There is a requirement to have annual meetings of shareholders.
A registered office is a requirement, whom the company will pay yearly, for an address which can receive litigation or other legal process on behalf of the business. Furthermore, a corporate secretary is another cost you will need to incur.
There is a requirement to file accounts to relevant authorities. On that note, there is oftentimes a requirement to have these accounts audited.
Thin capitalization rules are in effect. A company is thinly capitalised when there is a greater proportion of debt than equity. The minimum capitalization for a Ghana Mixed (Common and religious law) is 100.
A corporate director is not permitted, meaning this country is not a good option if you are setting up a structure where you want to protect director liability.
The directors are disclosed in the public registry of Ghana, Embassy of Ghanna. Shareholders are not disclosed in the Embassy of Ghanna.
Typically companies take 3 weeks to setup and there are 2 director(s) required and 2 shareholder(s) required at the time of incorporation.
Overall we think Ghana is a ok option and have given it a score of 45 as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Ghana. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Ghana, which is required by law.