How To Register A Sole Proprietorship Business in Ghana

Unemployment in Ghana is very high, especially, among the youth and graduates. The main reason for this is as a result of the style of teaching that takes place at all the educational levels in Ghana.

Instead of students being taught entrepreneurship skills and how to start their own businesses, they are only taught how to become employees.

If you have been able to learn entrepreneurship skills and created your own sole proprietorship business, then you are positively helping the Ghanaian economy. As such, in this article, I am going to show you how to register a sole proprietorship business in Ghana.

Starting a sole proprietorship business in Ghana is very easy but if you don’t register your business, you could be prosecuted. In Ghana, over 10% of the sole proprietorship businesses have not yet registered their businesses.

The Sole Proprietorship business unlike the other forms of businesses registration process is very fast and simple. Since the business belongs to only one person, he/she is the only person whose details are needed to register the business.

In Ghana, all businesses are required by law to register ONLY at the Registrar General’s Department (RGD). This means that, if you register your business with any other agency or department, your business wouldn’t be recognized by law as a business entity.

What Is A Sole Proprietorship Business?

A sole proprietorship business is an enterprise or business that is owned and run by one person. Also, there is no legal distinction between the owner and the business entity.

A sole proprietorship business can operate under the name of the sole proprietor (owner) or under a fictitious name, for example, Yaw’s Bar & Grill, Ama’s Nail Parlour, etc.

The fictitious name is just a trade name and as such does not have any distinction from the owner of the business.

Some Advantages Of A Sole Proprietorship Business

• Starting a business is very easy, quick, and less expensive as compared to the other types of businesses.
• There are no formalities.
• Owners can freely mix business with their personal assets or vice versa
• All profits are enjoyed by the owner (unless there are employees). Even if there are employees, the employees take their salary and the rest is left to the owner alone.

Some Disadvantages Of A Sole Proprietorship Business

• Debts, losses, and liabilities are paid by the owner alone.
• Raising funds in times of difficulty is very hard. This is because all the money required will be paid by the owner alone.
• Also, on the occasion of the death of the business owner, there is a high probability of the business collapsing.

How To Register A Sole Proprietorship Business in Ghana

There are two (2) main ways of registering a sole proprietorship business in Ghana, i.e. online and walk-in registration (physical registration).

How To Register A Sole Proprietorship Business in Ghana Physically At The Registrar General’s Department

• Visit the Registrar General’s Department office
• Pick up a prescribed Form A from the in-house bank
• Fill and submit the forms to the Business names Registration Counter for Verification and Capturing
• Pay a processing fee of GHS 60.00 at the in-house bank
• The Registrar will examine your forms. Once you meet the requirements, the Registrar will approve and then issue a Business name Registration Certificate.
• Finally, your business has been registered with the Registrar General’s Department

How To Register A Sole Proprietorship Business in Ghana Online

• Open a browser and type www.rgdservices.com
• Click on Name Search to check the availability of your Business Name
• Download forms of the Entity Type (i.e. Sole Proprietor) you want to register
• Print, fill, sign and scan the form you downloaded and other relevant supporting documents
• Create a portal user account
• Login into your portal user account with the user name and password that was given to you after you created the account
• Again select the Entity Registration link on the left pane
• Click the Create New button if a name has not been reserved OR, click on the Create From Name Reservation button if you have a business name reserved
• Select the type of entity from the drop-down list
• Type the name of the business under Entity Name and click on the Proceed button
• When approval is given, Certificates and other supporting documents are issued
• Input the data, upload scanned and signed document, and follow the on-screen instructions
• Click on the make payment online link to pay the required fees (GHS 60.00)
• After successful payment, the status of the registration will be sent to you via SMS
• Click on the eCertificate link to save or print the certificate and other supporting documents after the approval has been given
• Your business is now duly licensed to operate in Ghana

Requirements For Registering A Sole Proprietorship Business in Ghana

• Taxpayer Identification Number (TIN)
• Principal place of business
• Nature of the business
• Name and postal address, and other relevant information.

In conclusion, registering a sole proprietorship business is not anything like the other types of businesses in Ghana. Once you meet all the requirements, your business will be registered for you in the shortest possible time.