GIPC Registration in Ghana: What It Is and How to Do It

As one of the world’s fastest growing economies, Ghana has made tremendous strides in its fight against poverty in the last few decades. The country’s growth has also led to a burgeoning stock exchange, which has made it easier than ever for Ghanaian entrepreneurs to go public with their businesses and raise capital from venture capital investors around the world.

However, there is still a lot that Ghana can improve when it comes to capital access for its small and medium-sized enterprises (SMEs). While the recently implemented Ghana Investment Promotion Centre (GIPC) Scheme is a step in the right direction, small business owners in Ghana need more help getting access to the capital they need to grow their businesses.

What is the Ghana Investment Promotion Centre (GIPC)?

The GIPC Scheme is a government initiative that was launched in October 2016 with the goal of increasing the level of investment funds flowing into the Ghanaian economy. The scheme is managed by the Ghana Investment Promotion Centre (GIPC), which was established in January 2017. The Centre is a public-private partnership that aims to “amplify the impact of private capital in Ghana” and “enhance the image of Ghana as a stable investment destination.”

To reach this goal, the GIPC is implementing two major programs: the GIPC Registered Company (GRC) and the GIPC Fund. The GIPC Registered Company program is aimed at professionalizing the capital market in Ghana and increasing the number of companies that are listed on the Ghana Stock Exchange (GSE) and emerging stock exchange. The GIPC Fund program offers accredited investors the opportunity to direct their funds to the companies they believe will have the greatest impact on Ghanaian society.

How to Apply for the GIPC Scheme

To be eligible for the GIPC scheme, an investor must be a legal resident of Ghana and an accredited investor as defined by the GIPC. An investor may apply for GIPC registration by submitting an Applications for GIPC registration form to the nearest GIPC office. An investor may also apply online via the GIPC website. Once an investor has submitted his/her application, he/she will receive a Registration Number (RN) and Password via email. The investor must then login to the GIPC website to begin the application process.

GIPC Registration Process

Once an investor has applied for GIPC registration and received his/her RN and Password, he/she will be prompted to create a login with a username and password. The investor will then be able to access the GIPC Registration Portal, which will allow the investor to complete the required documentation and submit the application. The application process takes place entirely online via the GIPC website.

Documentation required to complete the application process includes:

Proof of identity and residence: a copy of the investor’s valid national identity card or passport;
Proof of ownership: a copy of the company’s Memorandum and Articles of Association;
Details of shares and bonds held: a copy of the latest company shareholding or bond subscription documents;
Details of shareholdings of family members: a separate declaration for each family member;
Details of foreign currency and deposits: a declaration that lists all foreign currency and deposits;
Details of real estate and other assets owned: a declaration that lists all real estate and other assets including inventory of products.

How Much Does it Cost to Become a GIPC Reg?

The GIPC registration process is entirely online and free of charge. However, investors must cover the cost of travel to the GIPC office along with their representative and translator if required for a face-to-face meeting. The GIPC does not provide any funding for travel or interpreter fees, so investors are expected to foot these costs themselves. The GIPC registration fee for companies is GHȂ500.

Pros of Being a GIPC Registered Company

Being a GIPC registered company has its benefits, such as:

Access to more investors, including institutional investors and government entities;
More options when it comes to raising capital;
Greater credibility among stakeholders;
Enhanced access to government programs.

Cons of Becoming a GIPC Registered Company

The GIPC registration process is time-consuming and requires significant investment in terms of time and money. For many small business owners, the cost of becoming a GIPC registered company may be prohibitive. However, for companies that wish to raise funds through an initial public offering (IPO), becoming a GIPC registered company is a prerequisite. The GIPC IPO process is complex and requires significant investment, both in terms of time and money. Moreover, companies that are not GIPC registered may have a difficult time trading on the official Ghana Stock Exchange (GSE) platform, which may lead to fewer opportunities to raise capital and expand their businesses.

Conclusion

The Ghana Investment Promotion Centre (GIPC) is a government initiative that was launched in October 2016 with the goal of increasing the level of investment funds flowing into the Ghanaian economy. The scheme is managed by the Ghana Investment Promotion Centre (GIPC), which was established in January 2017. The Centre is a public-private partnership that aims to “amplify the impact of private capital in Ghana” and “enhance the image of Ghana as a stable investment destination.”