Registrar of Companies warn 508,000 defaulting companies ... As they fail to comply with notices

Five hundred and eight thousand public and private business entities, names are to be struck off the register of the Office of the Registrar of Companies (ORC) by the end of this month.

This followed their failure to file their annual returns in order to be in good standing after they were served with notices and reminders through various sensitisation programmes and multiple publications for the past two years.

Initially, the ORC gave the companies up to the end of last year but decided to extend the period to allow for intensive public education by the ORC and adequate preparation on the part of the defaulting businesses to enable them to comply with the directive.

This was contained in a press release signed and issued to the Daily Graphic in Accra yesterday by the Registrar of Companies, Jemima Mamaa Oware.

Penalty 

The release stated: “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’s 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 is therefore, reminding 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 the filing of 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, requested that these entities to 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 (www.orc.gov.gh) 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) to facilitate the orderly conduct of business and the provision of business registration, insolvency, and regulatory services and in the process, to create an attractive business environment in the country.