The Office of Register of Companies (ORC) has begun the process to remove about 8,531 companies from it register.

According to the ORC, the decision has become necessary due to the inability of these companies to file their annual returns, with the necessary fees and financial statements for more than two years. 

The process is expected to end in May 2024.

The ORC explained that it has been forced to take this action after two years of rigorous sensitisation and multiple publications of these defaulting companies in the media and its official website as the Companies Act, 2019 (Act 992) requires.

“Despite all the efforts by the Office of the Registrar of Companies to encourage stakeholders to file their returns, some companies have still not complied with this directive”.

The ORC was however quick to add that these companies can, however, still file their annual returns together with their audited financial statements with the office by the end of May 2024 before the process of striking off companies is completed.

What will happen to defaulting companies?

The Office of the Registrar of Companies also said the companies whose names will be removed will not be permitted to conduct business under that name for 12 years.

However, these companies 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 delisted name.

The registrar also advised these companies that under no circumstance they make payment to any Mobile Money Account in the name of Office of Registrar of Companies or the Registrar-General Department.

 “The Office does not operate or have a ‘Momo’ Account neither has the Office authoris.ed any person to act on its behalf in striking off names of Companies in default”.

Fresh measures By ORC to deal with this challenge

The Office of Registrar of Companies has also announced that it will from May 1, 2024, will start with the implementation of an administrative penalty of GH¢1,000 against companies in  default, which is being done in line with  the Companies Act 2019.