Five hundred and eight thousand (508,000) public and private business entities, including churches, are to be deleted from the register of the Office of the Registrar of Companies (ORC) by the end of June 2024 for failing to file their annual returns to be in good standing.
A press statement signed and issued on June 3, 2024, by the Registrar of Companies, Jemima Mamaa Oware, indicated that the defaulting companies had been served with notices and reminders through various sensitisation programmes and multiple publications for the past two years.
The statement explained further that the Office of the Registrar of Companies (ORC) initially gave the companies up to the end of 2023 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.
“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 because of default in accordance with section 59(A) of the Registration of Business Names 1962 (Act 151).
In November 2023, the Registrar of Companies, at a meeting with some members of the Greater Accra Chapter of the Ghana Union Traders Association (GUTA) in Accra, revealed that the defaulting sole proprietorship businesses constitute about 500,000, with the churches being 3,100.
The law indicates that all registered companies and sole proprietorship businesses are expected to file their annual returns and renew their certificates respectively at the end of every year, failure to do so results in the dissolution of the registered entity, according to the law.
She warned defaulting businesses that from this year, there will be an administrative penalty charge for companies in default amounting to GH¢300 for the company and each official of the company.
Story By Grace Tsotsoo Quaye
