Over 300,000 businesses have been captured as dead firms by the Registrar General’s Department.

This is because they are not renewing their annual company registration or not updating their records at all.

The Registrar General’s Department has therefore expressed worry about the situation and has described the practice as unhealthy.

Registrar General, Jemima Oware, told Joy Business many people are not abreast with the company registration and therefore do not regard the conditions precedent regarding company registration.

“Now you know there are penalties and because people didn’t’ know the different types of businesses, everybody got up and said I want a company. And that is how come I’ve a bloated register full of dead companies”.

“They just register it one off because they want a VISA, they want to get a contract, they want to get married and so they should have a company. And after they get married they don’t bother to follow up with the requirements and all that. And so we have over 300,000 businesses that are not renewing, not updating their registration; that’s why all this clean up [removing dormant registered companies] came up.  

Registrar General advises young entrepreneurs to go into partnership

The Registrar General advised young entrepreneurs to concentrate on partnership or business name since it does require stringent condition.

“I’d advised that young people stay off with business name or partnership. And as the business grows, you can always change it into a limited liability company, it’s allowed; you can convert it from a business name into a limited liability company and at that level you would have grown the business to the stage that you can afford a company secretary, you can afford an auditor- you need an auditor, a qualified chartered accountant”, he explained.

“Now, these are very expensive professionals and that’s the kind of expertise we require in a company. So if you are not ready for it don’t go for it. They are very strict requirement, you supposed to be filing returns 18 months after incorporation and then yearly thereafter”, she further said.

Mission of Registrar General

The Department’s mission is to ensure efficient and effective administration of entities inter-alia the registration of Businesses, Industrial Property, Marriages, Administration of Estates and Public Trust, provide friendly services and accurate data for national and economic development.