Starting a Nonprofit Organisation in Ghana? Here’s Your Must-Know Legal Guide

Nonprofit organizations (NPOs) in Ghana aim to create social impact. They must meet legal requirements, including registration, licensing, compliance, governance, employment standards, and regular reporting

Imagine a team of passionate people working together not to line their pockets, but to change the world. That’s what a nonprofit organisation is all about! It’s a powerhouse with a purpose, tackling real-world issues— from building schools and hospitals to feeding families.

However, before nonprofit organisations (NPOs) can operate in Ghana, there are several legal requirements they must meet. These laws set out how NPOs function, from their establishment to their operations. Before an NPO sets the ball rolling, it is important to know and understand these legal requirements in order to prevent penalties.

Below are ten (10) must-know legal requirements for NPOs—your nonprofit’s checklist for success!

1. Registration with the Office of the Registrar of Companies(ORC) (“Registrar General”)

NPOs must first register with the ORC as a Company Limited by Guarantee as required by the Companies Act. This registration process gives the organisation a legal identity.

2. Adoption and Approval of a Constitution

The NPO must have a clear mandate, mission statement, vision, and constitution outlining its purpose, objectives, governance structure, operational guidelines, and target beneficiaries which are in conformity with the developmental goals of the country. It must also expressly prohibit the NPO from engaging in political activities. The Companies Act provides a standard constitution for organisations who wish to adopt it as their own or refer to it to come up with one.

3. Application for License

The NPO has to then apply for Licensing from the Non-Profit Organisation Secretariat.

4. Tax Identification Number (TIN)

Organisations are required to obtain a TIN, which is necessary for any tax-related transaction and gives them official recognition by the Ghana Revenue Authority (GRA).

5. Compliance with requirements under the ORC

As a mandatory requirement for all incorporated companies, all licensed NPOs shall submit an annual report and annual audited financial statement three (3) months before the expiration of the financial year for all International and National NPOs.

6. Annual General Meetings (AGMs)

NPOs have to hold AGMs to review activities, approve financial reports, and make critical decisions. This meeting should include board members and members of these organisations.

7. Registered Office Space and Address

The NPOs must have an identifiable office space with a signboard visibly displayed, an accessible postal address, an email address, and a digital address.

8. Employment Compliance

NPOs must comply with Ghana’s Labour laws, by engaging in fair employment practices and ensuring that all social security contributions of employees are paid up to date.

9. Organisational Requirements

NPOs must have a Board of Directors, with clear responsibilities and governance protocols. The Board must meet regularly and be responsible for the control of the organisation. The organisation must have clear policies to promote accountability, integrity, and public confidence in the administration and management of the organisation with the Board acting as an oversight body.

10. Certificate of Registration

NPOs must have a certificate of registration of its parent body where the NPO is a subsidiary/affiliate of an international non-profit organisation.