Sole proprietorship, limited company or company limited by guarantee: what each one means for you.
The structure you register determines who owns the business, who is responsible for its debts, and what you need to file each year. Most founders choose one of three structures.
Sole proprietorship
You trade under a registered business name, but legally you and the business are the same. It is the quickest and simplest option, and a good fit if you are starting on your own and want to begin trading fast.
- One owner
- Registered with ORC Form A
- Your personal assets are not separate from the business
- Renewed every year
Company limited by shares
A separate legal entity owned by its shareholders. Your personal assets are protected from the company’s debts, and you can bring in co-founders or investors by issuing shares.
- At least two directors, one of whom lives in Ghana
- At least one shareholder
- A company secretary and an auditor
- Registered with ORC Form 3 and files annual returns
Company limited by guarantee
The structure for non-profits such as NGOs, charities, associations and foundations. There is no share capital; members instead guarantee a set amount towards the company’s debts if it is wound up.
Quick rule of thumb
- Going it alone and want to start simple: sole proprietorship
- Want limited liability, co-founders or investors: company limited by shares
- Not-for-profit: company limited by guarantee
Good to know: This guide is general information, not legal advice. If your situation is unusual, request a call and we will help you decide.