The most common question new founders in Ghana ask is whether to register a business name or a limited company. They are very different legal structures. Here is how to choose.
Business name (sole proprietorship)
Registered under the Registration of Business Names Act (Act 151) on Form A. It is quick and cheap, but there is no legal separation between you and the business — your personal assets are exposed, and you cannot bring in shareholders. Best for solo traders and freelancers testing an idea.
Company limited by shares
Registered under the Companies Act, 2019 (Act 992) on Form 3. The company is a separate legal person: your liability is limited to your shares, you can raise capital and add directors, and banks and partners take you more seriously. It costs more and needs at least two directors and a company secretary.
Quick comparison
Choose a business name if: you are one person, want the lowest cost, and are just starting out. Choose a company if: you want to protect personal assets, raise money, sign bigger contracts, or build something to last.
Can you switch later?
Yes — many founders start as a business name and later incorporate a company. It is cleaner to start as a company if you already know you will grow.
Ready to decide? Register a business name or incorporate a company online with NELLA.