Adnan Adams Mohammed
The Office of the Registrar of Companies (ORC) has warned to strikeout names of businesses and companies which have not yet filed their annual returns.
Directors and proprietors of over 500,000 businesses and companies have up to June 30, 2024 to file their annual returns.
The affected companies is made up of over 8,000 companies and over 500,000 business names. However, they have all been notified and reminded through various sensitisation programmes and multiple publications over the past two years, the ORC have said in a press statement.
“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 to the Registrar of Companies directing the restoration of the name to the register as per Section 289 (7) of the Companies Act 992”, the statement issued last week has indicated.
Initially, the Office of the Registrar of Companies gave the companies until the end of 2023 to comply 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.
The ORC noted that per Section 289 (5) of the 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 that 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 being removed from the register by reason of default, in accordance with Section 59(A) of the Registration of Business Names Act 1962 (Act 151).
The release stated that filing annual returns is vital for maintaining compliance and transparency within the business community. It ensures that companies and businesses fulfil their statutory obligations and remain in good standing with the Office.
Additionally, the release advised that failure to meet these obligations not only jeopardizes the entity’s legal standing but also undermines public trust and confidence. Therefore, it requests that these entities take immediate action to be in good standing to avoid paying penalties and suffering potential legal repercussions.
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. It has thus urged defaulting companies to visit the ORC’s website to check the names of affected companies in default.
