The Office of the Registrar of Companies (ORC) plans to delist over 500,000 public and private businesses by the end of June 2024 due to non-compliance with filing requirements.
This delisting will affect more than 8,000 companies limited by shares and over 500,000 business names that have failed to file their annual returns, necessary to maintain good standing.
Despite receiving numerous notices and reminders through various awareness programs and publications over the past two years, these businesses have not complied.
Initially, the ORC set a deadline for the end of 2023, but it was extended to provide additional time for public education and compliance.
According to a press release by the Registrar of Companies, Jemima Mamaa Oware, in Accra on June 3, 2024, companies struck off the register will be prohibited from conducting business under their company name for twelve years, as stipulated by Section 289 (5) of the Companies Act 2019 (Act 992).
Business names will lose their exclusive rights and become part of the public domain upon deregistration, in line with Section 59(A) of the Registration of Business Names 1962 (Act 151).
The release also noted that a company’s name can only be restored to the register following a court order, provided there is sufficient cause for such action, as outlined in Section 289 (7) of the Companies Act 992.
The ORC has stressed the importance of filing annual returns to ensure compliance and transparency within the business community. Failure to comply jeopardizes the legal standing of entities and undermines public trust.
Defaulting companies and businesses are urged to file their Annual Returns and Renewals as directed by the Registrar of Companies before the validation process concludes on June 30, 2024.
The ORC encourages all stakeholders to comply in order to maintain the integrity of the business environment and foster trust among investors, consumers, and the public.
Defaulting companies should visit the ORC’s website to check the list of entities slated for removal from the register.