Ghana has a constitutional government under a multi-party democracy. The Constitution of Ghana, which is the supreme law of Ghana clearly grants a preference for the rule of law and provides for the separation of powers between the Executive, the legislature and the judiciary. She operates a common law legal system (court decisions are largely based on precedent).
Ghana is considered an attractive destination for investment in Africa for several reasons. In addition to her two decades of stable democratic governance in the midst of a turbulent sub region, Ghana has established an extensive constitutional and statutory framework for the protection of investment.The Constitution of Ghana guarantees against expropriation, and permits it only under very stringent conditions, namely: public policy;subjecttoa law which makes provision for the prompt payment of fair and adequate compensation; and a right of access to the High Court for redress. Also, the Ghana courts will enforce any investor-protection clauses in any ratified Bilateral Treaties between Ghana and the country of the investor. Commercial Courts exist for the expedient adjudication of transactional and other business related disputes.
In addition to the guarantees of protection for investment, the legal framework grants freedom in relation to repatriation of profits. Ghana maintains a floating exchange rate regime, and foreign exchange payments do not require exchange approvals or consents, except that payments must be made through a licensed bank and transfer of foreign exchange must be made through a person licensed to carry out the business of money transfer or any other authorised dealer. The Bank of Ghana, however, reserves the right to impose temporary exchange controls where the Governor determines that the country is experiencing or has experienced a severe deterioration in its balance of payments. Thus, foreign investors are assured of free repatriation of profits subject only to any applicable withholding tax requirements.
Under the laws of Ghana any of the following corporate entities may be established by an investor as the vehicles of investments: a limited liability company; a company limited by guarantee; an unlimited company; a partnership and individual business entities registered under the Registration of Business Names Act, 1962 (Act 151).
Vehicles for Business
The tax jurisdiction of Ghana is primarily source while the secondary jurisdiction is residence.