Do You Need to Register Your Business Name? The Law Behind the Hustle

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The conversation around business registration in Ghana is often misunderstood, especially among MSMEs. Many business owners assume that unless their business is incorporated as a company or generating significant income, registration is optional.This is not the case when it comes to the use of business names. The Registration of Business Names Act, 1962 (Act 151) imposes a legal obligation that all business owners need to understand.
 
The Registration of Business Names Act, 1962 (Act 151) provides that any person operating under a name that is not simply their legal name must register that name in accordance with the Act. This requirement applies to individuals, firms or partners who carry on business under a name that does not consist solely of their true surname, with or without their first names or initials. For example, where a business name includes extra words or branding elements that go beyond the person’s own legal name, that name must be registered. In plain terms, if you are doing business under any name other than your legal name like “Kwadwo’s Kitchen,” “Glow Haven,” or “MK Collections”, then you are required by law to register that business name. The purpose of this provision is not merely bureaucratic,  it ensures transparency, consumer protection and accountability in commerce.

The law also applies to individuals who change their names through marriage or other legal processes and go on to use a new name in business. As long as the name being used departs in some way from their original legal identity, it falls within the scope of registration.
 
However, there are exceptions. The Act makes it clear that registration is not required in every single case. One such exception is where the addition to the name merely indicates that the business is being continued in succession to a previous owner. Another is where the business is temporarily under the management of a receiver or manager appointed by a court or financial institution. In such cases, the obligation to register may not apply, depending on the circumstances.

 

These provisions confirm that the obligation to register a business name is not based on income level, size or how formally the business is run. It is based on how the name appears to the public. If you are trading under a name distinct from your true legal name, the law requires that you register that name so that the true owner behind the business can be identified. This legal traceability is what creates order and accountability in Ghana’s business environment.

 




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