Types of Business Organizations
There are different types of business organizations in Ghana that you can register under the law. Bearing this information in mind will help you avoid the hassle of having your business rejected during the registration process. Read on for the legal entities you can form in Ghana and how they work.
Types of business organization
The business needs will determine the type of business model formed. Here is a list of the most common business organizations in Ghana.
- Company limited shares
- Company limited by guaranteed
- Company unlimited shares
- Sole proprietorship
- External company
- Incorporated partnership
Types of business models discussed
Company limited by Shares
This business entity is registered at the registrar general department with at least two acting directors and one shareholder. The liabilities of the members are limited by their share values.
Company limited by guarantee
This is a company structure that best suits nonprofits. The company objects limited by guarantee cannot include any that generates profits. Due to this, the companies get an exemption from corporate tax. The two types of companies limited by shares and the other limited by guarantee are both referred to as limited liability companies.
Company unlimited shares
This is also a business entity registered with the registrar general department. It also has to have two directors, one shareholder and is used for profit. The members are not limited by their share values. It is meant for entities that give professional service and advice such as law firms.
READ ALSO: Pig Farming in Ghana - Business Plan, Tips and Revenues
Sole proprietorship
This type of business is entitled to an individual who owns all the profits and liabilities of the business. The entities do not require any incorporation by the registrar in Ghana. However, registration is necessary if the owner of the company wants to operate under a business name.
External company
This is an outside corporate body seeking to do business in Ghana through registration. The company may be subject to the tax laws of Ghana but it is regulated by the company of its original incorporation.
Incorporated partnership
This refers to an arrangement where two or more people decide to come together in a business arrangement for joint profit making. They could do this through an incorporated partnership registered at the registrar. In this arrangement, the partner’s personal wealth is not protected. The act of one partner will bind the entire partnership.
Types of businesses in Ghana
There are different types of businesses in Ghana. You would want to set up a business that gets you profits. Some of this include:
- cosmetics
- technology accessories
- alcohol and alcoholic beverages
- toiletries
- jewelry
- construction materials
- pharmaceuticals
- beauty salon
- herbal medicine
- chop bar
Register your company after you have identified the most beneficial model for you and start making profits. The potential in Ghana is immense. All it needs is for you to make the right choice.
READ ALSO: Meet the lady taking the barbering business serious in Ghana
Source: YEN.com.gh
