Startups and businesses must take seriously the licensing regime and the tax policies that govern their operations to avert challenges in the future, Business Coach, Andrew Ayiku has cautioned.
Mr. Ayiku who was on the Citi Breakfast Show as part of the on-air series for the Citi Business Festival said most often, startups take for granted the laws that govern what they do.
He cited an instance saying, some viable businesses have lost the opportunity to enter into joint ventures with foreign companies because the local firms did not have the requisite certification from state institutions.
“When you conceive the idea of starting a business, think about it. What kind of business do I want to operate? What is the licensing regime that I have to go through? Sometimes, you don’t need to register your company as a company. Sometimes you need to start as an enterprise. Sometimes you need to go through as sole proprietorship,” he said.
Mr. Ayiku recalled instances where business owners were not able to access funds to expand their companies because they did not have the right certifications from institutions such as The Ghana Standards Authority (GSA), The Ghana Investment Promotion Center(GIPC) and the Ghana Revenue Authority(GRA).
He advised that all startups must take tax compliance seriously to avoid charges and prosecution.
Touching on the need to file tax returns at the appropriate time, Mr. Ayiku maintained most international companies will not do business with local companies that do not meet their tax obligations.
He, therefore, appealed to new businesses to make it a priority in paying taxes on time.
Click below to listen to Caleb Ayiku on the Citi Breakfast Show: