The most useful guide on how to register a not-for-profit in Ghana
A Not-for-Profit, Non-Profit or Non-Governmental Organisation (NGO) is an organization that is mainly dedicated to furthering a particular social cause or to serve social enterprises, community projects, or other non-commercial purposes. By law, it uses its revenues to further achieve its ultimate objective, rather than distributing its income to the shareholders, leaders, or members. In Ghana, Not-for-Profit organizations are also termed as a Company Limited by Guarantee. Most Not-for-Profit /NGO’s are tax-exempt or charitable, which simply means that they do not pay income tax on the money that the organization receives.
We recently received a large number of inquiries on how to set up a Not-for-Profit and as a result, compiled this really useful guide on how to register a Not-for-Profit in Ghana.
Step 1: Requirements
Company name search: A business name is a name under which an organization trades and is recognized. It is important to do a name search if you want an exclusive name and wants to be unique. A good business name should embody the feeling of your brand, making it memorable. It should remind your employees and others of why you’re doing what you’re doing. We encourage you to be as creative as possible finding a name. You could also tell a story with your business name, people love stories and what better way than to tell it with your business name. Virgin, the company founded by renowned entrepreneur Richard Branson was the founders’ name and way of saying they were completely new to the business.
Step II: Apply for a Tax Identification Number (TIN)
Tax Identification Number (TIN): The Taxpayer Identification Number is a unique ID number issued to all taxpayers and potential taxpayers. You must be registered for a TIN before your register your business with the Registrar-General’s Department. This is simply done by obtaining a TIN registration form from the Ghana Revenue Agency and completing it with details such as: Photo ID,Residential and postal information, mother’s maiden name etc.
Step III: Complete Company Limited by Guarantee Form (FORM 3)
All companies are required to have at least two Directors and a secretary for incorporating a business. One of the Directors must be resident in Ghana at all times, which means having a valid and registered post box and residential address. For Non-Profits/NGO, the Board of Directors of the company are referred to as the Executive Council or Executive Board. The Executive Council membership could range from two to as many as twenty persons on the board. After figuring out who will serve on your Executive Council, you will be required to complete the FORM 3 with:
Principal or business activity of the Company;
Business address information;
Principal place of business (physical address of the business);
Particulars of the Executive Council Members and Secretary;
Particulars of the auditor of the Company.
The last part of the completing the form 3 is adding the Company Limited by Guarantee regulations form. The regulations of the company states the name of each owner of the Company and their agreement to set up the company and become members. The regulations will also set out the rules and regulations the company has to follow. A company can either use a standard regulations or contact an expert such as ourselves to compile a suitable agreement for setting up your NGO/Non-Profit.
Step IV: Submission of forms
After completing above, you’re almost on your way to having your business idea make the jump from an idea to legal entity. Submit the forms to the Registrar-General’s Department with an official cash fee. If approved, you will be issued with a Certificate of Incorporation, Certificate of Commencement, Form 3 and the Company’s Regulations.
Last steps for your Not-for-profit/NGO
Once you have received your certificate to Commence Business and Incorporation you will have to apply and register with the Department of Social Welfare for NGO status. The Social Welfare Department is the regulator of NGOs in Ghana and thus, has to issue certificates of recognition to organisations who apply as not-for-profits.
Required documents for registration with Social Welfare Department:
Certificate of Incorporation and commencement of business.
Application letter on the organisation’s official letterhead.
NGO’s company profile and regulations.
Social investigation report.
A recommended letter from the district or municipal assembly where your NGO is located.
The district office after inspection and evaluation will provide a report to the Department of Social Welfare.
It is really easy to set up a Company Limited by Guarantee and we hope the steps above will make the process much simpler. We also offer specialist packages designed solely for this purpose. If you would like our assistance please do contact us below.