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- 9 Marks
Question
Ghana Investment Promotion Centre (GIPC) is a governmental agency established to promote, co-ordinate, and facilitate investment in Ghana. In its efforts at promoting both local and foreign investments in Ghana, it has mounted a series of lectures to drum home this fact and has done so well over the years in this regard.
Required:
In line with the GIPC Act, 2013 (Act 865), how should foreigners participate in business activities in Ghana?
Answer
Under section 28 of the GIPC Act, 2013 (Act 865), the participation of foreigners in business activities in Ghana is regulated as follows:
- Joint Enterprise with a Citizen:
A foreigner may participate in a joint enterprise with a partner who is a citizen of Ghana if the foreigner invests foreign capital of at least US$200,000, either in cash, capital goods relevant to the business, or a combination of both by way of equity participation. The Ghanaian partner must hold at least 10% of the equity in the joint enterprise. - Wholly-Owned Enterprise:
A foreigner may wholly own a business in Ghana if they invest foreign capital of at least US$500,000 in cash, capital goods relevant to the business, or a combination of both by way of equity capital. - Participation in Trading:
A foreigner may engage in a trading enterprise if they invest at least US$1,000,000 in cash or goods and services relevant to the business. In addition, the trading enterprise must employ at least 20 skilled Ghanaians.
These are the guidelines under which foreigners are permitted to participate in business activities in Ghana, ensuring both local involvement and significant foreign investment.
- Tags: Business Participation, Foreign Investment, GIPC Act
- Level: Level 3
- Topic: International taxation
- Series: MAY 2021
- Uploader: Kwame Aikins