How to Start a Business in Ghana

Be aware of national and local regulations when opening a business in Ghana.

The West African nation of Ghana has a very diverse ethnic and tribal population while maintaining a stable constitutional democracy. The majority of Ghanaians are Christians, with Muslims making up about a sixth of the population. Many languages are spoken here, but English is the official business language. Core businesses in Ghana are petroleum, timber, horticultural products, minerals, and cocoa. Business opportunities are growing in other fields, such as IT.

Things You'll Need

• Capital
• Skills in the targeted business area

Instructions

1. Decide what type of business you want to establish. This will determine what kind of capital and documentation you'll need. Be aware of current national or local policies in Ghana that may impact your plans. For instance, in April 2010, Ghana's foods and drugs board mandated a 100% increase in fees for registering and renewing pharmaceutical businesses. Restaurants and some other businesses must have documentation from the fire department and the town or county planning department.

2. Find the source(s) for the required capital. With the effects of the global recession almost over, getting capital from financial institutions is much easier. You can also seek other investors to help you generate the required startup capital.

3. Choose the location for your business. The location will be determined by the product or service you want to offer. The location choice is also determined by the availability of a premise where your business can be set up. A prime location is important for since customers will be readily accessible. As in many other African countries, securing premises, especially in prime locations, can prove to be costly. (References 2).

4. All businesses in Ghana need to be in accordance with provisions made by Companies Code, 1963 (Act 179), Partnership Act, 1962 (Act 152), and Business Name Act, 1962 (Act 151). Get the necessary paperwork required for operating a business from the metropolitan authority. Apart from the operating license, most of the other paperwork is determined by the local authority where you want to set up your business.

5. Formulate a policy for the running of your business. This is the step where you determine any extra services that you will offer to the customers as well as the basis on which you will price your products and services.

6. Make investments to enable the business to offer services. Basic office equipment includes furniture, interiors, computers, telephones, scanners, copiers, and fax machines. Remember to hold a grand opening ceremony for the opening of your business to help inform customers about your entry into the market.

Tips & Warnings

• Be aware of established business etiquette in Ghana. Don't use your left hand to offer business cards, and exchange them only when appropriate. Maintain friendly eye contact when shaking hands. Respect people's titles when addressing them: This applies to surnames as well as honorary or professional titles.

References

• Entrepreneur
• Starting Business in Ghana
• Ghana Investment Promotion Center
• Xpatulator
• Info-Ghana

Resources

• Doing Business