The Office of the Registrar of Companies (ORC) is set to delist over 500,000 public and private business names and companies by the end of June 2024 due to non-compliance with filing requirements.

The affected entities include more than 8,000 companies limited by shares and over 500,000 business names that have failed to file their annual returns to maintain good standing.

Despite receiving notices and reminders through various sensitization programs and publications over the past two years, these businesses have not complied. The ORC had initially set a deadline of the end of 2023 but extended it to allow for more public education and time for the businesses to meet the directive.

According to a press release by the Registrar of Companies, Jemima Mamaa Oware, in Accra on June 3, 2024, companies struck off the register are prohibited from conducting business under the company name for twelve years, as per Section 289 (5) of the Companies Act 2019 (Act 992). Business names will lose their exclusive rights and fall into the public domain following deregistration, in line with section 59(A) of the Registration of Business Names 1962 (Act 151).

The release also stated that restoration of a company's name to the register can only occur after a court order is issued, finding sufficient cause for such action, as outlined in Section 289 (7) of the Companies Act 992.

The ORC has emphasized the importance of filing annual returns for maintaining compliance and transparency within the business community. Failure to do so jeopardizes the legal standing of the entities and undermines public trust.

Companies and businesses in default are urged to file their Annual Returns and Renewals as directed by the Registrar of Companies before the validation process ends on June 30, 2024. The ORC encourages all stakeholders to comply to maintain the integrity of the business environment and foster trust among investors, consumers, and the public.

Defaulting companies are advised to visit the ORC's website to check the list of affected entities slated for removal from the register.

GA/SARA