In Ghana, a foreign investor who invests in an established entity and meets the prescribed capital has a clear pathway to an automatic work and residence quota/permit. This allows the investor to remain in Ghana and lawfully undertake his established enterprise, opening up a world of opportunities in the vibrant Ghanaian market.
A work permit or immigration quota authorises an employer or employee to engage in lawful and gainful employment in Ghana.
In Ghana, the process of obtaining work and residence permits is clear and straightforward. Registering enterprises with the Ghana Investment Promotion Centre (GIPC) provides a clear pathway to obtaining these permits from the Ghana Immigration Service, ensuring that all steps are transparent and well-defined.
The GIPC Act 2013 (Act 865) offers significant benefits to foreign investors. Section 24 (1) of the Act states that an enterprise with foreign participation, as permitted under this Act, must be registered with the Centre after its incorporation or registration and before the commencement of business operations. This registration process opens the door to a range of opportunities for foreign investors.
The above statutory stipulation makes it mandatory for all enterprises with foreign participation to register with the GIPC. Accordingly, using the word “shall” obliges or mandates such enterprises with foreign participation to register with the GIPC.
More importantly, an enterprise that registers with the Centre and meets a minimum paid-up capital qualifies to apply for an automatic expatriate quota, thus allowing the said enterprise a pathway to work and residence permits for its expatriate workers.
Automatic Expatriate Quotas
GIPC Act governs the grant of automatic expatriate quotas. Section 35 (1)(a)(i) of the GIPC Act provides that an enterprise which has a paid-up capital of not less than Fifty Thousand United States Dollars and not more than Two Hundred and Fifty Thousand United States Dollars is entitled to an expatriate quota of one person.
Further, Section 35(1)(a)(ii) of the GIPC Act provides that an enterprise which has a paid-up capital of not less than Two Hundred and Fifty Thousand United States Dollars and not more than Five Hundred Thousand United States Dollars is entitled to an automatic expatriate quota of two persons.
More importantly, Section 35(1)(a)(iii) provides that an enterprise which has a paid-up capital of Five Hundred Thousand United States Dollars, and not more than Seven Hundred Thousand United States Dollars is entitled to an automatic expatriate quota of three persons. Finally, an enterprise with more than Seven Hundred Thousand United States Dollars is entitled to an automatic expatriate quota of four persons.
The GIPC Act requires an enterprise that wishes to utilise the pathway provided under the Act to apply to the Centre for consideration after meeting the minimum paid-up capital.
In practical terms, an enterprise meeting any specific paid-up capital has an automatic pathway to a work and residence permit.
An enterprise that meets the said paid-up capital must obtain a confirmation letter from the Bank of Ghana via the enterprise bankers. After receiving the confirmation letter for the transferred funds, the enterprise can engage the GIPC to grant the automatic expatriate quota.
It must be noted that under the GIPC Act, some activities are solely reserved for Ghanaians and Ghanaian-owned enterprises. Such activities are captured under section 27 of the GIPC Act and include but are not limited to taxi or car hire services and beauty salons or barber shop operations. Notably, by a Legislative Instrument, the Minister designated by the President of the Republic with oversight responsibility over the Centre shall amend the list of enterprises reserved for citizens and enterprises wholly owned by citizens.
Notwithstanding the above stipulations, foreign participation is allowed if the minimum foreign capital is met. In addition, section 28 of the GIPC Act outlines the requirement under which a foreigner may participate solely in an activity reserved for Ghanaians.
For instance, under section 28 (2) of the Act, a person who is not a citizen may engage in a trading enterprise if that person invests in the enterprise not less than one million United States Dollars in cash or goods and services relevant to the investment.
It is notable for underscoring that, regarding the minimum foreign capital requirement under Section 28 of the Act, the law allows for a combination of cash and capital goods relevant to the investment to meet such an obligation.
However, under Section 35 of the Act, regarding the paid-up capital for the automatic expatriate quota, there is no such combination of cash and capital goods. The intent can be gleaned that under Section 35 of the Act, only cash computation of the paid-up capital shall be acceptable to qualify for an automatic expatriate quota.
More importantly, the exemption clause introduced in section 28 of the Act emphasises the position of cash computation in section 35.
Also, section 29 of the Act, which is the exemption clause to the minimum capital requirement under Section 28 of the Act, states, among others, that the minimum capital requirement specified under section 28 does not apply to portfolio investments or enterprises set up solely for export trading and manufacturing.
For the Act, section 29 (2) defines export trading as goods or products originating from Ghana.
The Role of the Ghana Immigration Service
The Ghana Immigration Service (GIS), acting through the Comptroller-General, plays a crucial role in the process. Under section 4 (1) (e) of the Immigration Service Act, 2016 Act 908, the GIS is empowered to issue visas for entry into the country and permits for residence or work in the country. Therefore, the final seal regarding the pathway to the grant of automatic expatriate quota for residence and work permits is of concern rests with the Ghana Immigration Service acting through the Comptroller-General.
It is essential to underscore that once an enterprise meets the GIPC requirement and is formally issued the expatriate quota letter, the enterprise must apply to the Ghana Immigration Service for the issuance of the permit as established under the Immigration Service Act, 2016, Act 908.
Application to the Ghana Immigration Service
Regarding enterprises which have met a specified paid-up capital and qualify for an automatic expatriate quota as per section 35 of the GIPC Act, the enterprise must submit an application to the Comptroller-General of the Ghana Immigration Service (GIS) with the following documents in support:
• Cover letter for Work and Residence Permit.
• Business Registration Documents of the entity.
• Police Criminal Record for the Home Country concerning the applicant.
• Medical Report issued by the Ghana Immigration Service Clinic.
• Employment Contract including terms.
• Completed Residence Permit form.
• GIPC Automatic Quota Confirmation/Approval letter.
• Curriculum Vitae of the applicant.
• Tax Clearance Certificate of the company.
• Republic of Ghana Non-Citizen Identity Card concerning the applicant.
• 2 Passport size pictures.
Once the above-listed documents are submitted, the Ghana Immigration Service will conduct an extensive review of the application and documents and grant the work and residence permit to the applicant on sufficient grounds. An applicant shall be informed of the successful work and residence permit grant for pick-up.
Conclusion
Ghana’s investment pathway for work and residence permits is cumbersome but attainable. The GIPC Act and the GIS Act provide a clear path to obtaining work and residence permits in Ghana via investment. The law allows foreigners to obtain the requisite permits, stay, and lawfully engage in their business activities in Ghana.
Legal Notice
The contents of this publication, current at the date of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon. Legal advice about your particular circumstances should always be sought separately before taking action based on this publication.
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