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30 August 2021

How To Register A Hotel In Ghana

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Firmus Advisory

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Firmus Advisory Limited is a business consulting firm operating in three areas in Ghana, Regulatory Compliance,Market Research and Trade Development. We offer the following under services under these three areas. Regulatory Compliance- Company Formation,Tax Advisory,Immigration Support Services,Regulatory licensing and permits,Product certification.Market Research-Customer Experience,Market Insights,Industry Research,Employee Engagement,Business Plan.Trade Development- Business to Business match-making,Market Development, Market Entry Services,In-market seminars for visiting business delegations.
To operate a hotel in Ghana, there are registration and permit requirements one needs to meet before commencing operations.
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To operate a hotel in Ghana, there are registration and permit requirements one needs to meet before commencing operations. All businesses are first registered or incorporated at the Registrar General's Department. Depending on the nature of business, there are other regulatory compliances that must be adhered to after incorporation of the company. For example, a hotel establishment requires additional licensing from the Ghana Tourism Authority before commencement of operations. A Ghanaian may incorporate a hotel as a sole proprietor business or a company limited by shares. Foreigners however, can incorporate a hotel as a company limited by shares only.

To operate a hotel in Ghana, you are required to register with the following mandatory bodies;

  • Registrar General's Department
  • Ghana National Fire Service
  • Environmental Protection Agency
  • Metropolitan Assembly (from the district location of business)
  • Ghana Tourism Authority
  • Ghana Revenue Authority.

Procedure for starting a hotel business in Ghana

Step 1: Registration at the Registrar General's Department

The first step in starting a hotel business in Ghana is to incorporate your business. Follow the below procedures to register your hotel in Ghana;

A: Conduct a name search at the Registrar General's Department

B: Apply for a Taxpayer Identification Number for the Shareholder(s), Director(s) and Secretary          

C:  The next step is to download the following forms from the Registrar General's Department's website or purchase them from the in -house bank at the Registrar General's Department.

  • Form 3
  • Form 26(A)- Consent to Act as a Director
  • Form 26 (B) Consent to Act as a Secretary
  • Form 26 (C) -Statutory Declaration
  • BO1-Beneficial Ownership Form- Overarching BO
  • BO2- Beneficial Ownership Form- Natural Person

Information required to complete the form includes;

  • Company Name
  • Nature of Business (Give a brief description of the company's business activities)
  • Registered Office Address (Postal Address, Digital Address, House Number/Building or flat Name, Street Name, City, District, Region)
  • Particulars of Directors, Shareholders, Secretary and Auditor (Postal Address, Digital Address, House Number/Building or flat Name, Street Name, City, District, Region)
  • Tax Identification Numbers of the Directors, Shareholders, Secretary and Auditor
  • Auditor's Consent Letter.

D:  Pay Stamp duty, business incorporation and filing fees.

There are two main statutory fees to be paid at the Registrar General's Department during company registration; these are stamp duty, incorporation and filing fees.

  • Stamp duty cost is 0.5% of the stated capital.
    • The minimum amount of stated capital is given below;
      • 100% Ghanaian Owned limited liability is at least GH¢500.
      • Wholly Foreign Owned -US$500,000.
      • Joint Venture (foreigner & Ghanaian - at least 10% shareholding) -US$200,000

Alternatively, for a Ghanaian establishing a hotel business in Ghana, you may consider to register the business as a sole proprietorship business. This option is only for Ghanaians. Click here to read more on the procedure for registering a sole proprietorship business in Ghana; Registering a Sole Proprietorship Business

Step 2: Registering with Environmental Protection Agency (EPA)

It is mandatory for every hotel to be registered with the Environmental Protection Agency after incorporation of the business. Registration with EPA helps in the assessment of the environment in which the hotel is situated to ensure its suitability. To register with EPA, you are required to purchase the appropriate (depending on the size of the establishment) Environmental Assessment Form from the EPA office. Complete the forms with the required information and submit at the EPA office. After inspection of the hotel by officials from EPA, an invoice for payment of processing fees will be issued. If there are queries after inspection, applicants will need to make amendments for a second inspection. Registration with Environmental Protection Agency is usually done after completion of the establishment.

Step 3: Acquiring Suitability Health Certificate from your Metropolitan or Municipal Assembly.

Applicants must apply for Environmental Health Certificate from the District, Municipal or Metropolitan Assembly where the hotel is located.

According to the Local Governance Act 2016, ACT 936;  A person shall not designate a place as a hotel, motel, pub, guest house, restaurant, chop bar or food joint, unless the place has been approved and issued with Suitability Health Certificate by the Assembly for that purpose.

NOTE: The cost ranges from GH?1,000 - GH?2,000 depending on the size of the hotel. It takes approximately 2 weeks to complete the process.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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