General

Registrar of Companies to strike out 508,000 companies

By the end of June 2024, fifty-eight thousand (508,000) public and private business organizations must be removed from the Office of the Registrar of Companies (ORC) registry.

This comes after the businesses neglected to submit their yearly returns in order to maintain their excellent standing.

Throughout the past two years, the companies have received notices and reminders through a variety of publications and sensitization campaigns.

The Office of the Registrar of Companies (ORC) originally granted the companies until the end of 2023, but they chose to extend the deadline in order to give the ORC more time to educate the public and provide the defaulting enterprises more time to prepare so they could comply with the mandate.

This was stated in a news statement that the Registrar of Companies, Jemima Mamaa Oware, signed and released on Monday, June 3, 2024, in Accra.

Registrar of Companies to strike out 508,000 companies

Penalty

“Per Section 289 (5) of Companies Act 2019 (Act 992), a company that has its name struck off from the register cannot and is not permitted to conduct business under the Company name for twelve years.”

It further noted that business names (Sole Proprietorships) lose the right to the name as it falls into the public domain after the name is struck off the Register by reason of default in accordance with section 59(A) of the Registration of Business Names 1962 (Act 151).

Furthermore, the release warned that “a company struck off the register can only be restored by the Registrar of Companies after a court finds sufficient cause and therefore issues an Order to the Registrar of Companies directing the restoration of the name to the register as per Section 289 (7) of the Companies Act 992.”

It revealed that “over 8,000 companies limited by Shares (both Private and Public) which were published in the national dailies and on our official website have been served notices and reminders through vigorous sensitisation and multiple publications for the past two years and were recently notified again in a release dated February 12, 2024, urging them to file their Annual Returns to be in good standing.”

It therefore reminded companies and businesses in default to file their Annual Returns and Renewals as directed by the Registrar of Companies because the Office will end the validation process of the entities in default by June 30, 2024.

Annual returns

The release stated that filing Annual Returns is vital for maintaining compliance and transparency within the business community.

It ensures that companies and businesses fulfil their statutory obligations and remain in good standing with the Office.

In addition, the release advised that failure to meet these obligations not only jeopardised the entity’s legal standing but also undermined public trust and confidence and therefore requests that these entities take immediate action to be in good standing to avoid paying penalties and suffering potential legal repercussions.

“The ORC encourages compliance from all stakeholders to uphold the integrity of the business environment and foster trust and confidence among investors, consumers, and the public,” it stated.

It urged defaulting companies to visit the ORC’s website to check the names of affected companies in default to be stricken off.

ORC

The ORC is the government of Ghana’s agency established by the Companies Act, 2019 (Act 992) with the purpose of facilitating orderly conduct of business and provision of business registration, insolvency, and regulatory services and in the process, to create an attractive business environment in the country.

Akosua Boatemaa

I'm Yours Truly, Blogger Akosua Boatemaa. I'm here to feed Your eyes and Ears with Authentic News Updates.

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