The Office of the Registrar of Companies (ORC) has announced that it has started the process to continue striking off 2,584 dormant and defaulting companies from its companies’ register.

A statement from the ORC explained that the exercise, which will continue to the end of December 2022, is part of the second phase of the clean-up exercise which began in the early part of the year.

“These dormant companies failed to comply with the directive issued by the Registrar of Companies for all Companies to file their Annual Returns and Financial Statements or risk being stricken off the Companies Register”, the statement said, "adding that the Office has already stricken off 2,788 Companies and made them inactive during the first phase of the clean-up exercise out of the over 100,000 dormant Companies earmarked for the strike off”.

By this, the ORC is emphasising that dormant companies cannot be electronically searched on or carry out any changes on their company information in the Register, awaiting a full winding up after 12 years.

Such companies, it warned can only be restored by an Order of the High Court to the ORC within 12 years after the publication of the strike off in the Companies Bulletin.

“The affected Companies include Private/Public Companies Limited and Unlimited by Shares, Private/Public Companies Limited by Guarantee (Schools, Churches, Associations, Unions, Fun Clubs etc.), Professional Bodies and External Companies”.

The ORC stressed that the exercise is being carried out in accordance with Section 289 of the Companies Act, 2019 (Act 992) which connotes that a Company can be stricken off the Companies Register for failing to file its Annual Returns on time or failing to notify the Registrar of Companies of a change in the Company’s Registered Office and Principal Place of Business.

The ORC urged all defaulting and dormant Companies whether in operation or not, to file their Annual Returns by 30^th December, 2022 to avoid being removed from the Companies Register by the end of the year, 2022.

“Furthermore, Companies and Businesses registered between 1960 to 2011 and are yet to carry out updates of their records with the ORC dubbed‘re-registration’ are encouraged to do so by the end of the year. Companies are entreated to change their Auditors who have served for 6 years in compliance to the provisions of the Companies Act to avoid sanctions”.

The statement pointed out that any company official with knowledge of the company’s non-existence or having no more interest in the Company’s Business Name should write to the Registrar of Companies indicating such intention or contact the ORC’s Client Service Line on 055-765-3130 or 030-266-6081 to indicate such intent.

“Please note that the penalty for late filing of Annual Returns is ¢450.00 and fees for filing Annual Returns and Beneficial Ownership information remains ¢50.00 and ¢60.00 respectively”.