GIPC Act 865 vs GIPA Act 1173: What Changed in Ghana?

Those general minimums are not restated. The Act 1173 capital minimum is directed to a non-citizen engaging in a trading enterprise. Other sector-specific requirements remain relevant.

At least US$500,000 in cash as equity capital, and at least 75% of the enterprise's employees must be skilled Ghanaians.

Trading means the purchase and resale of goods, whether imported or locally produced.

Retains six categories: market trading and hawking; beauty salons and barbering; taxi or car hire with fewer than twenty-five vehicles; exercise books and basic stationery; retail of finished pharmaceuticals; and sachet-water production, supply and retail. The former scratch-card and betting entries are not restated, but other sector laws still apply.

Registration remains required after incorporation and before operations, but renewal is required every year.

Registration remains voluntary, but a registered enterprise must renew annually and may use only benefits or incentives applicable to it and for their authorised purpose.

A foreign-owned enterprise that fails to register or renew cannot apply a benefit or incentive under the Act. Misapplication of a benefit is expressly subject to an administrative penalty.

A registered enterprise must obtain written approval before establishing a branch. Failure to apply or operation at an unapproved location attracts an administrative penalty.

Section 38 operates in furtherance of section 16 of the Exemptions Act. It retains Cabinet priority areas, publication of areas and criteria, the investor application and the Authority's determination within thirty days.

The Minister for Finance may, in consultation with the Authority and subject to the Exemptions Act, make a legislative instrument granting an industry-specific or programme-specific tax incentive.

Fees and charges under an unregistered technology-transfer agreement are expressly not deductible under the Income Tax Act, 2015.

Retains the core protections. Its expropriation provision expressly covers property, an interest or right over property and measures with equivalent effect; transferability operates through a licensed dealer and remains subject to foreign-exchange and other applicable law.

An enterprise may submit an investment-related grievance against a government institution within six months. The Authority acknowledges receipt within five days, facilitates resolution within three months and communicates its recommendation or decision within ten days after reaching it.

After six months without amicable settlement, the Act refers to an applicable bilateral or multilateral investment-protection framework or another national or international mechanism agreed in writing. The mediation default is retained.

Enterprises must comply with domestic law and administrative guidance and address human rights, business ethics, environmental, safety and labour standards. The Act also addresses sustainable development, human capital, inclusion, community contribution, environmental protection and preference for local talent.

Six capital bands provide quotas of two, four, six, eight, ten or twelve persons. The bands begin at US$50,000 and rise above US$10 million.

A quota granted by the relevant authority is valid for five years and may be renewed every five years.

The enterprise applies through the Authority to the Immigration Service. If satisfied with the documents, the Authority submits its recommendation within five days. Current enterprise registration or renewal is relevant to issuance.

Registration, review, monitoring and commencement on registration continue. The Act also makes registration dependent on satisfactory documentation and payment of the registration fee.

Registration is valid for five years and is renewable every five years, in consultation with the relevant sector regulator. A renewed agreement must be registered.

A licensed bank must not make the foreign payment unless presented with the registration certificate and a copy of the agreement certified and confirmed by the Authority.

Fees under an unregistered agreement are non-deductible, and the unregistered agreement is not legally enforceable.

Those powers continue. The Authority must also establish a national investment registry and reporting system for investment tracking, annual compliance reviews and investment surveys.

The same core timetable and judicial-review route are retained. The section does not apply to recommendations or decisions under the investor grievance mechanism.

The general offence under section 55(1) carries 2,000 to 4,000 penalty units, with an additional 100 to 200 penalty units for each month of continuation. Separate information and obstruction offences carry their own ranges.

Specific penalties apply to non-renewal, benefit misuse, participation in reserved activities, prohibited technology-transfer payments and unapproved branches. Unpaid penalties may lead to benefit restrictions and civil-debt recovery.