By the conclusion of June 2024, a total of five hundred and eight thousand (508,000) public and private business entities are slated for removal from the register of the Office of the Registrar of Companies (ORC). This action arises due to their failure to submit their annual returns, a requisite for maintaining good standing.
Over the past two years, these companies have received notifications, reminders, and participated in various sensitization programs and multiple publications to alert them of their non-compliance.
Initially, the ORC had granted these companies until the close of 2023 to rectify their filings. However, in a bid to facilitate enhanced public awareness and afford ample time for defaulting businesses to adhere to the directive, the ORC extended the deadline.
This information was disseminated through a press release issued in Accra on Monday, June 3, 2024, and was signed by the Registrar of Companies, Jemima Mamaa Oware.
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.”
Additionally, it highlighted that in line with section 59(A) of the Registration of Business Names 1962 (Act 151), the designation of business names (Sole Proprietorships) becomes public domain once they are removed from the Register due to non-compliance.
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.”
Consequently, it served as a reminder to companies and enterprises in default to submit their Annual Returns and Renewals in accordance with the Registrar of Companies’ instructions, as the Office will conclude the validation process for them by June 30, 2024.
Annual returns
The statement emphasized the critical importance of filing Annual Returns to uphold compliance and transparency within the business sector.
Such filings are essential for companies and businesses to fulfill their legal requirements and maintain favorable standing with the Office.
Moreover, the release cautioned that neglecting these obligations not only risks the entity’s legal status but also erodes public trust and confidence. It therefore urges these entities to promptly rectify their status to avoid penalties and potential legal consequences.
“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 Office of the Registrar of Companies (ORC) is a governmental body of Ghana mandated by the Companies Act, 2019 (Act 992). Its mission is to promote the orderly operation of businesses and offer services related to business registration, insolvency, and regulation. Through these functions, the ORC endeavors to cultivate an appealing business climate within the nation.