LICENSING REQUIREMENTS FOR TIER 3
- Restrictions of Eligibility to Corporate Entities: No person other than a body corporate, incorporated in Ghana, shall be eligible to apply for a licence to carry Tier 3 microfinance business. No person shall carry on Microfinance business unless it has obtained from the Bank of Ghana a license for that purpose.
- Restrictions on shareholding:
- Shareholding of microfinance institutions such as Susu companies, Deposit taking financial NGOs and Money lending companies shall be restricted to only Ghanaians.
- Shareholding in non-deposit taking microfinance institutions may be exclusively Ghanaian, exclusively foreign or jointly Ghanaian and foreign.
- Application procedures
- Application for a licence: (i) Every application for a licence shall be made in writing to the Director, Banking Supervision Department, Bank of Ghana, Accra, and shall be accompanied by:
- A certified true copy of the Certificate of Incorporation and Regulations of the company.
- Names, addresses, occupations of persons who would hold significant shares directly or indirectly in the proposed venture and the respective values of such holdings as well as their corporate affiliations.
- Completed Personal Questionnaire on the particulars of the directors and senior persons to be in-charge of the management of the business, including their background, financial position, business interests and particulars of other business concerns under their control or management.
- A feasibility report including a business plan and financial projections of the company for the first five years of operation.
- Information on capital and sources of funds; and
- Such other particulars as the Bank of Ghana may require.
ii) Interview The Banking Supervision Department shall interview the applicant with respect to the application.
4. Minimum Paid-Up Capital
Tier 3 Activities
All Tier 3 entities shall require not less than GH¢2,000,000.00 [Two Million Ghana Cedis only] as minimum paid-up capital.
5. Approval in principle
The Bank of Ghana may issue an ‘approval-in-principle’ to the applicant on such terms and conditions as it may consider necessary and appropriate, if it is satisfied that: [a] the applicant would carry on the business with integrity, prudence and the required professional competence; and [b] The applicant has the capacity to raise the initial paid-up capital required to hold a licence.
6. Pre-operating Conditions
The Central Bank may issue the final approval and licence to the applicant after satisfying itself that the following pre-licensing conditions have been met.
- Minimum paid-up capital – the company has raised the minimum paid up capital
- Premises: The Company [a] Has provided evidence of title deeds/lease agreements [b] Has approvals by relevant authorities [c] Has adequate business premises, staff operating area, ventilation, lighting, etc.
- Has demonstrated security of the premises, including adequacy of alarm systems, fire extinguishers, vaults or safes, etc.
- Has in place up to date insurance covers – fire, burglary, fidelity guarantee, etc.
- Possesses Operational plans and policies approved by the Board.
- Has accounting procedure manuals, computers and appropriate software, etc.
- Has in place adequately trained and sufficiently experienced staff as well as competent key personnel;
- Has submitted its first year pre – operating financial statement of affairs.
- Has met any other conditions imposed by the Bank of Ghana.
Tier 2 and 3 microfinance institutions shall pay the following fees:
- Processing fee: GH¢500.00
- Licence fee: GH¢1000.00
- Annual licence renewal fee: GH¢500.00
MLAG MEMBERSHIP REQUIREMENTS
- Application Stating Purpose of Letter ( Period If Any)
- Two different valid IDs (Passport, Voter’s Id, …)
- Two (2) Passport Size Photos of directors
- Curriculum Vitae of Directors
- Submit filled Membership Registration Forms
- Police report (background check on directors) OR
Attestation Letters (3) From:
- Attestation Letter (Recently Completed School)
- Community Leader (Clergy, Imam)
- Existing Member Of Mlag (In Good Standing)
7. There will be an Interview session with the Executive Secretary
8. Payment of Member Registration Fee (Currently Gh₵1,250.00)
9. Certified true copies Of Business Registration documents Fees
- Membership Registration fee: GH¢1250.00
- Annual membership dues: GH¢1000.00 NB: ANNUAL SUBSCRIPTION/ DUES: GH Ȼ1000.00 IS PAYABLE EVERY YEAR AS MEMBERSHIP RENEWAL, UNTIL WITHDRAWAL FROM THE ASSOCIATION.
- Website: www.mcaghana.com
- NB: FEES PAID ARE NOT REFUNDABLE