The Office of the Registrar of Companies (ORC) has implemented a classification system to categorize companies in Ghana as small, medium, or large.
The move aims to streamline regulations and promote compliance with corporate governance standards.
Why it matters
- The classifications help tailor regulatory requirements and reduce compliance burdens for smaller businesses.
- This system provides clarity on company obligations, especially regarding annual returns and financial audits.
The breakdown
Companies are now categorized based on turnover, net assets, and employee numbers:
- Small companies:
- Annual turnover: Less than GHS 500,000
- Net assets: Less than GHS 250,000
- Employees: Less than 20
- Benefits: Exempt from corporate income tax and certain regulatory fees.
- Medium companies:
- Annual turnover: GHS 500,001 to GHS 2 million
- Net assets: GHS 250,001 to GHS 1 million
- Employees: 21 to 50
- Large companies:
- Annual turnover: Above GHS 2 million
- Net assets: Above GHS 1 million
- Employees: More than 50
What they’re saying
- ORC Statement: “This classification ensures a level playing field for all businesses while encouraging compliance with the Companies Act, 2019 (Act 992).“
- Business owner reaction: Many SMEs see this as a step toward simplifying their reporting obligations.
Zoom out
The classifications also align with international practices, making it easier for Ghanaian companies to attract foreign investors and partners.
What’s next
- The ORC plans to engage stakeholders and educate businesses on how this new system impacts their reporting and regulatory obligations.
- Enforcement of these classifications will take effect immediately, with adjustments to requirements for financial statements and annual returns.
