Over 503,100 companies and businesses, including churches, are set to be struck off the register at the Office of Registrar of Companies (ORC) by the end of this year.
Legal Obligations under the Companies Act
These entities have failed to file their annual returns and renew their certificates for more than three years, a clear violation of the Companies Act, 2019 (Act 992).
Under the Companies Act, all registered companies and sole proprietorship businesses are required to file their annual returns and renew their certificates respectively at the end of each year. Failure to comply with this legal obligation results in the dissolution of the registered entity.
Action by the Office of Registrar of Companies (ORC)
The ORC, which was separated from the Registrar-General's Department (RGD) as part of reforms to enhance business registration and create a favorable business environment, will be taking decisive action to clean up its register. This move is aimed at ensuring compliance with the law and maintaining an accurate record of active businesses in the country.
Speaking at a meeting with members of the Greater Accra Chapter of the Ghana Union Traders Association (GUTA), the Registrar of Companies, Jemima Maama Oware, warned defaulting businesses that starting from next year, there will be an administrative penalty charge of GH¢300 for both the company and each official involved in the company.
Last year, out of a sample of 13,126 companies, 2,788 were found to be in default of filing their annual returns and were consequently rendered inactive for non-compliance over a period of more than three years. Mrs. Oware expressed concern about certain registered companies that have not updated their records since 1963. Some directors and stakeholders in these companies have even passed away, yet their entities have failed to update their records accordingly.
Measures to Address the Issues
To address these issues, the ORC will be implementing measures to migrate businesses onto an eRegister. All businesses and companies' names in the legacy Register will be given sufficient time to register and migrate their operations. Those that fail to do so within the specified period will go through due process for being struck off.
Furthermore, starting from next year, company inspectors will be conducting inspections of business certificates and other legal documents to ensure compliance. The ORC is committed to fully automating its registration and document processing procedures. As a result, manual walk-ins will no longer be entertained unless there are critical reasons requiring manual intervention.
Introduction of 24-hour Prestige services
In addition to these efforts, the ORC will be introducing 24-hour Prestige services, which will expedite document processing within a timeframe of 24 to 48 hours. While this service will come at an additional cost to clients, it aims to provide a more efficient and convenient experience.
Caution against Fraudulent Activities
During the meeting, Mrs. Oware cautioned GUTA members and the general public against engaging with intermediaries commonly known as "goro boys." These individuals often defraud clients by posing as representatives of the ORC and demanding payment via mobile money transfers. She urged everyone to ignore such calls and text messages to avoid potential harm to their business names.
Interaction with Greater Accra Chapter of Ghana Union Traders Association (GUTA)
Nana Kwabena Peprah, Chairman of the Greater Accra Chapter of GUTA, expressed gratitude for the interaction with the ORC. He acknowledged that it had increased their awareness of significant issues that were previously overlooked and called for more such interactions to enhance the smooth working relationship between traders and the ORC.
Appeals for Assistance from GUTA Members
Several GUTA members also took the opportunity to appeal to the ORC for assistance in addressing challenges faced by traders, including the invasion of businesses by foreigners who possess companies registered under Ghanaian names.
Commitment of the ORC
The ORC remains committed to upholding the Companies Act and ensuring that businesses operate within the legal framework. By enforcing compliance and maintaining an accurate register, it aims to create a conducive business environment that promotes growth and protects the interests of all stakeholders.
(This article is sourced from GraphicOnline.com and curated by Monica Kritel |Mydailyreports24)
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