DOING BUSINESS GHANA 2018

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2 DOING BUSINESS GHANA 2018 INTRODUCTION Ghana is located along the Gulf of Guinea on the West Coast of Africa, about 750 km north of the equator. The country is bordered by Burkina Faso to the north, Cote D Ivoire to the west, Togo to the east and the Gulf of Guinea to the south. COUNTRY REPUBLIC OF GHANA L O C AT I O N WEST AFRICA C A P I TA L C I T Y ACCRA A D M I N I S T R AT I V E R E G I O N S 10 P O P U L AT I O N ( * ) MILLION OFFICIAL LANGUAGE ENGLISH CURRENCY GHANAIAN CEDI RELIGION CHRISTIANITY 73%, ISLAM 20.2%, TRADITIONAL 5.7%, OTHER 6.3% T O TA L L A N D A R E A 2 3, 8 5 3, H E C TA R E S ARABLE LAND 1 3, 6 0 0, H E C TA R E S ( % ) C L I M AT E TROPICAL, GENERAL (21-28) C E C O N O M I C S TAT U S MIDDLE INCOME GDP (NOMINAL) GH 203,405 BILLION (2017) GDP GROWTH 7.9% (2017) G D P P E R C A P I TA 1, USD I N F L AT I O N 9.6 %(APRIL 11, 2018) E X C H A N G E R AT E ; GHC/USD (INTERBANK) (MARCH,2018) M I N I M U M WA G E GHC 9.68 (2017) FDI (US$ BILLION) 4.91 (DECEMBER,2017) TYPE OF GOVERNMENT CONSTITUTIONAL DEMOCRACY EXECUTIVE P R E S I D E N T, C A B I N E T L E G I S L AT U R E U N I C A M E R A L N AT I O N A L A S S E M B LY SOURCE; GSS, GIPC AND WORLD BANK INTERNATIONAL RANKINGS INDEX/REPORT EASE OF DOING BUSINESS RANK 2017 (WORLD BANK) AFRICAN ATTRACTIVENESS INDEX GLOBAL COMPETITIVENESS INDEX 2016/2017 (BY THE WORLD ECONOMIC FORUM) RANK -1ST IN WEST AFRICA -NO. 1 MOST RESILIENT ECONOMY IN WEST AFRICA 114 OUT OF 138 COUNTRIES -8TH OUT OF 54 COUNTRIES IN AFRICA AND IBRAHIM INDEX OF AFRICAN GOVERNANCE (IIAG) TH OUT OF 54 COUNTRIES FOR SAFETY AND RULE OF LAW -11TH OUT OF 54 COUNTRIES FOR HUMAN DEVELOPMENT A.T. KEARNEY GLOBAL SERVICES LOCATION INDEX (GSLI), 2016 NO. 1 DESTINATION IN SUB-SAHARAN AFRICA, 2016 RMB GLOBAL MARKET RESEARCH TH BEST PLACE TO INVEST IN AFRICA

3 WHY GHANA? A stable political environment within the West African sub region, with established democratic institutions and systems to ensure good governance in the country Abundant, adaptable and easily trainable labour force A competitive daily minimum wage rate of GHC 9.68 per day 100% foreign ownership of companies Duty free access of manufactured exports to USA (AGOA) and European Union markets Excellent sea and air connections with Europe and USA Strategic and central location within West Africa provides access to the ECOWAS market with an estimated population of 300 million people A comparatively well-developed infrastructure i.e. internal road network, electricity and water supplies, internal and external communication as well as sea and airport facilities An already existing industrial base ranging from heavy engineering to precision industries, electronic, agro-processing, plastics and mental work, clothing and textiles, jewellery and wood processing Availability of a stock exchange as well as other bank and non-banking financial institutions A dynamic private sector willing to collaborate with foreign partners VISITING GHANA While the member countries of the Economic Community of West African States have a visa waiver system set for their nationals travelling to Ghana, all other visitors to Ghana must be in possession of a Ghanaian visa (aside from visitors from the nations of Egypt, Hong Kong, Kenya, Mauritius, and Singapore). Ghana visas may be granted for reasons of tourism, business, study or transit. PROCESSING TIMES The processing time for a Ghana visa takes approximately 4 working days for counter applications and 10 working days for postal applications. However, this is subject to change. Ghana visa's processing time depends very much on the type of visa, the nationality of the person applying, the time of year and other variables. Therefore, it is advised that applicants start the application process well in advance of their scheduled trip. BUSINESS VISA The same requirements of the Ghanaian tourist visa apply to an applicant for a business visa too. However, the Ghanaian business visa applicants are required to furnish evidence of their purpose, such as a letter from their firm from their country of residence, as well as a letter of invitation from the business they will be visiting in Ghana. Ghanaian business visas are valid for a period of 3 months and must be utilized within 3 months of the date of issue. Applications for further visa extensions must be made to the Director of the Ghana Immigration Service for consideration. The business visa grants holders the right to attend meetings, conferences and other business-related activities. However, the holder is not permitted to be employed in any capacity during their time in Ghana.

4 LAND ACQUISITION PROCESS IN GHANA Ghana is blessed with immense dynamics of land forms for industrial, commercial, agriculture, residential and recreational purposes. Land ownership in Ghana There are four categories of land ownership in Ghana governed by both customary practices and enacted legislation. TYPES OF LAND OWNERSHIP IN GHANA i. Individual/Private Lands: These are lands owned by individuals and private entities. ii. Stool/ Skin Lands: These are lands under the custodianship of various chiefs. iii. Family Lands: These are lands managed by Heads of families assisted by principal members of the families. iv. State and Stool Vested Lands: These are lands managed by the Lands Commission. Land acquisition largely has to go through certain administrative processes with the Government providing a facilitating role in terms of providing legal and regulatory framework governing land administration and land use. The state intervention is to ensure that there is transparency, accountability and security after investors have acquired such lands. The lease period for an acquired land for industrial or investment purposes and residential purposes for foreigners (Non-Ghanaian) in Ghana is 50years and for Ghanaians is 99years. PROCEDURES TO ACQUIRE AND REGISTER LAND It s always advisable to follow due diligence to avoid being dragged into a never conclusive land disputes by ensuring the following: (i) Deal with the rightful owner of the land recognized by law. A quick official search will do in addition to neighborhood questionings and supporting documents from claimed owner. Do an original survey of the said parcel of land and ensure the plan used for the search is for the exact land of interest. (ii) Engage the services of a licensed surveyor/registered member of Ghana Institution of Surveyors. Land acquisition largely has to go through certain administrative processes with the Government providing a facilitating role in terms of providing legal and regulatory framework governing land administration and land use. The state intervention is to ensure that there is transparency, accountability and security after investors have acquired such lands. The lease period for an acquired land for industrial or investment purposes and residential purposes for foreigners (Non-Ghanaian) in Ghana is 50years and for Ghanaians is 99years. PROCEDURES TO ACQUIRE AND REGISTER LAND It s always advisable to follow due diligence to avoid being dragged into a never conclusive land disputes by ensuring the following: (i) Deal with the rightful owner of the land recognized by law. A quick official search will do in addition to neighborhood questionings and supporting documents from claimed owner. Do an original survey of the said parcel of land and ensure the plan used for the search is for the exact land of interest. (ii) Engage the services of a licensed surveyor/registered member of Ghana Institution of Surveyors.

5 INVESTMENT PROCEDURES Incorporate company at Registrar General s Department and obtain the following: * Certificate of Incorporation * Certificate to Commence Business * Company Regulations The department has five working days to complete formalities if all documents are in order. Obtain investment Registration Certificate from Ghana Investment Promotion Centre (GIPC) All investors intending to operate in Ghana are legally required to register with GIPC. An application is made to GIPC for a Registration Certificate with the Company Regulations, Certificate of Incorporation and Current Bank of Ghana Confirmation of bank transfer of equity capital or shipping customs documents relating to machinery and equipment brought as equity. Foreign investors are required to comply with the GIPC Act 685 regarding minimum equity requirements either in cash or in kind as follows: Equity (Cash) US$200,000 for JV with Ghanaian partner US$500,000 for 100% foreign ownership US$1,000,000 for Trading Activity Equity (Kind) In the case of equity in kind, in the form of imported machinery, equipment and goods, all documents covering such imports should be in the name of the registered company and evidenced by the following, which should be submitted to GIPC for registration purposes: Bill of lading/airway Bill (originals) Destination (Ghana) Inspection Certificate Custom Bill of Entry (originals) Import Declaration Form (IDF) Certified/Final Invoices REGISTRATION WITH GHANA REVENUE AUTHORITY All companies must register directly with the IRS and VAT secretariat for purposes of statutory tax. OBTAIN ENVIRONMENTAL IMPACT ASSESSMENT (EIA) CERTIFICATE FROM ENVIRONMENTAL PROTECTION AUTHORITY (EPA) EIA is required to conduct for the following business operation: Developing farm land more than 40 Ha Affecting more than 20 families, conducting wetland cultivation or water-based aquaculture Commercial exploitation of flora and fauna and introduction of exotic spices for the forestry(tree cropping ) business *Agro-processing companies that could have a negative effect on the environment must also be registered with Environmental Protection Authority (EPA) by submission of the application (EA1 form) attached with a site plan. Registering with Free Zones and Export Processing Zones (Ghana Free Zones Board) Eligibility for a free zone license is that the investor should be a limited company registered with the Registrar General s Department, and the business should be export-oriented (minimum 70% of products to be exported). The application for the license process takes 28 working days. Evidence of Capitalization form 6 from the Registrar Generals Department.

6 REGISTRATION WITH PLANT PROTECTION & REGULATORY SERVICES DIRECTORATE (PPRSD), MOFA It is not allowed to import, export, manufacture or distribute fertilizers in commercial quantities without registration to PPRSD. Seed growers, importers and exporters are required to contact the nearest regional agricultural office and register with the regional/zonal seed coordinator. Registration is valid for two years. + Seeds imported into the country must be declared to the quarantine officers at the entry point and must be accompanied with an international certificate such as International Seed Testing Association (ISTA) certificate or its equivalent along with phytosanitary and other relevant certificates. + Seed exporters must obtain an international certificate (Orange International Certificate of ISTA) from National Seed Testing Laboratory (NSTL) along with phytosanitory and other relevant certificates before exportation. GIPC INVESTMENT INCENTIVES AND GUARANTEES The following investment incentives and guarantees are guaranteed under the GIPC Act 865. Complete (i.e. 100%) custom import duty exemption for industrial plant, machinery and equipment imported exclusively for this proposed investment.(that is, Industrial plant, machinery or equipment and parts thereof are exempted from customs import duty under the HS Codes chapter 82, 84, 85 and 98. An enterprise whose plant, machinery or equipment and parts are not zero rated under the Customs, Excise and Preventive Service Management Act, 1993 may submit an application for exemption from import duties and related charges on the plant, machinery or equipment or parts of the plant, machinery or equipment to the Centre). Immigrant quota for expatriate personnel (and is tied-up to their foreign equity contribution) Corporate tax rebates Free transferability through any authorized dealer bank in freely convertible currency of dividends or net profits attributable to the investment. Payments in respect of loan servicing where a foreign loan has been obtained. Remittance of proceeds (net of all taxes and other obligations) in the event of sale or liquidation of the enterprise or any interest attributable to the investment. Guarantee against expropriation. Tax holidays

7 CORPORATE TAX TYPE OF COMPANY PERCENTAGE (%) All companies 25 Companies engaged in non traditional exports 8 Hotels 22 Companies listed on the Stock Exchange 22 Financial Institutions Income from loan to farming enterprises 20 Income from loan for a leasing company 20 TAX HOLIDAYS (FROM START OF OPERATION) Real Estate Rural Banks SECTOR Nº. OF YEARS 5 years in partnership with Government After 10 years tax holiday RATE OF TAX IN EXEMPTION PERIOD SINCE 2017 Agriculture and Agro Processing Cocoa farmers and producers Income tax exempt Cattle ranching / farming 10 years Tree cropping (e.g. coffee, oil palm, sheabutter and coconut) 10 years chargeableincome Livestock excluding cattle and poultry 5 years Fish farming, poultry and cash crops 5 years Agro Processing converting fish, livestock into edible canned products 5 years