- ORC to strike off over 500 businesses by June 30, 2024, due to non-compliance.
- Entities failed to file annual returns despite multiple notices.
- Companies struck off can't conduct business under that name for 12 years.
- ORC urges defaulting companies to file returns to avoid being struck off.
Effective June 30, 2024, the Office of the Registrar of Companies (ORC) will strike off over 500 public and private business names and companies from its register. This decision comes after the entities failed to file their annual returns, resulting in non-compliance.
The list of affected entities includes over 8,000 companies and over 500,000 business names. Despite numerous notices and reminders through various sensitization programs and publications over the past two years, these entities have failed to comply.
Initially, the ORC had set a deadline of December 31, 2023, but extended it to allow for intensive public education and adequate preparation for the defaulting businesses to comply. According to the ORC, companies that have their names struck off the register cannot conduct business under that name for twelve years, as per Section 289 (5) of the Companies Act 2019 (Act 992).
Similarly, business names (Sole Proprietorships) lose the right to the name, which falls into the public domain after removal from the register due to default, in accordance with section 59(A) of the Registration of Business Names 1962 (Act 151).
A company struck off the register can only be restored by the Registrar of Companies after a court finds sufficient cause and issues an Order directing the restoration of the name to the register, as per Section 289 (7) of the Companies Act 992.
The ORC has reminded companies and businesses in default to file their Annual Returns and Renewals, as directed, to avoid being struck off the register. Filing Annual Returns is vital for maintaining compliance and transparency within the business community.
The failure to meet these obligations not only jeopardizes the entity’s legal standing but also undermines public trust and confidence. The ORC encourages compliance from all stakeholders to uphold the integrity of the business environment and foster trust and confidence among investors, consumers, and the public.
Defaulting companies are urged to visit the ORC’s website to check the names of affected companies in default and take immediate action to avoid paying penalties and suffering potential legal repercussions. The ORC encourages all entities to file their Annual Returns and Renewals to maintain good standing and avoid being struck off the register.
