Ghana’s Businesses To Declare Who Will Benefit From Its Success Before They Can Be Registered

Going forward, new businesses seeking to be registered in Ghana must first declare the direct beneficiaries from their success before they can be registered. This is according to a new directive from Ghana’s Registrar General’s Department (RGD).

Registrar General, Jemima Oware
Registrar General, Jemima Oware

‘‘This will ensure there is transparency in business ownership in the country and prevent corruption, money laundering, and terrorism funding,’’ the Registrar General, Jemima Oware, said in view of Ghana’s new Companies Act, 2019 (Act 992).

Here Is All You Need To Know

  • According to Ghana’s new Companies Act (2019), a beneficial owner is a person(s) who directly or ultimately owns or exercises substantial control over a person or company and has a substantial economic interest in or receives substantial economic benefits from a company. ​​​​
  • Mrs Oware said the law will prevent the instances where the government awards multiple contracts to politicians because they get individuals to front for them as directors and shareholders of two or more companies directly owned by them.
  • She explained that the new law will not allow for individuals, especially politicians from using others as directors or shareholders of a company they own or have majority shares in.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com