Introduction to Types of Companies in Ghana

Introduction:

Different types of companies can be formed for different purposes. In this note, we highlight the types of companies that can be formed.

Types of Companies Under The Companies Act, 2019 (Act 992):

In Section 7(1) of Act 992, it is provided that:

An incorporated company may be

(a) a company limited by shares;

(b) a company limited by guarantee;

(c) an unlimited company; or

(d) an external company

Although the above provision reveals that there are only four types of companies, Subsection 4 provides that the types of companies specified in Subsection 1 may be private or public. We may then say that an incorporated company may be:

1. A private company limited by shares
2. A public company limited by shares
3. A private company limited by guarantee
4. A public company limited by guarantee
5. A private unlimited company
6. A public unlimited company
7. An external company: Because it is not clear what type of external company being referred to. Thus, the external company may be limited by shares, by guarantee, or unlimited.

These types of companies are discussed extensively in subsequent notes.