i) Business Activities that Cannot Be Engaged in by Foreigners
A person who is not a citizen or an enterprise that is not wholly owned by Ghanaian citizens shall not invest or participate in the following activities:

• The sale of goods or provision of services in a market, petty trading, hawking, or selling of goods in a stall.
• The operation of taxi or car hire service in an enterprise that has a fleet of fewer than 25 vehicles.
• The operation of a beauty salon or barber shop.
• The printing of recharge scratch cards for telecommunications services.
• The production of exercise books and other basic stationery.
• The retail of finished pharmaceutical products.
• The production, supply, and retail of sachet water.
• All aspects of pool betting business and lotteries except football pools.

(5 marks)

ii) Tax Benefits of Establishing a Sole Proprietorship Business as Against a Limited Liability Company

• Personal Reliefs: Sole proprietors enjoy personal reliefs, which help reduce their tax liabilities, whereas limited liability companies do not enjoy such benefits.
• Pension Contributions: Sole proprietors can contribute to pension schemes (up to 35% of declared income), which helps reduce their tax burden, while limited liability companies do not enjoy this benefit.
• Interest Income: Interest received by sole proprietors from resident financial institutions is exempt from tax, but companies pay an 8% tax on such interest.
• Tax on Other Interest Income: Sole proprietors pay 1% tax on interest received from non-resident financial institutions, whereas companies pay an 8% tax.
• No Stamp Duty: Establishing a sole proprietorship does not require the payment of stamp duty, unlike limited liability companies that need to pay stamp duty during their registration process.

(5 marks)