There are different types of vehicles available to an entrepreneur to launch the business venture.
- Sole proprietorship – A sole proprietorship is a business owned (and often run) by a single individual.
For information on the procedure for registering a sole proprietorship, please see full text.
- Partnership – Where an entrepreneur wants to share liability for a business venture without the stringent requirements associated with incorporating a company, a partnership may be the most suitable vehicle for the venture.
For information on the procedure for registering a partnership, please see full text.
- Limited liability company – Where the entrepreneur wants to separate personal assets from the assets of the business
- Unlimited liability company – Where the company owes money for instance, the shareholders’ may be held personally liable for the debts.
- Company limited by shares – The nature of the interest of members or shareholders is the shares they subscribe to.
- Company limited by guarantee – A company which is incorporated for a purpose other than carrying on a business and making profits. It is usually a charity organisation.
For information on the procedure for registering a company, please see full text.
- External company
- An external company is a company formed outside Ghana and which has an established place of business in Ghana. An established place of business means a branch, registration office, management, factory, mine or other fixed place of business.
For information on the procedure for registering an external company, please see full text.
- A co-operative has been defined by the International Co-operative Alliance as “an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs or aspirations through a jointly owned and democratically controlled enterprise”. This means that the association is usually set up by its members to provide a service or services for its members.
For information on the procedure for registering a cooperative, please see full text.
Apart from sole proprietorships, the law requires every other form of business organisation to be registered. Where the business is not registered, it is not recognised under the law to be a legal entity.
READ THE FULL GUIDE.
This is an extract taken from our full Business Registration guide.
Many thanks to Elikem Nutifafa Kuenyehia for contributing this guide.
Elikem is an entrepreneur, lawyer, academic and business facilitator focused on FDI into Africa. His book ‘Kuenyehia On Entrepreneurship’ is considered a ground-breaking resource on Ghanaian entrepreneurship.