Over 500,000 Businesses and 5,000 Companies Face Delisting by December End

The Office of the Registrar of Companies (ORC) has issued a warning that over 500,000 business names and 5,000 companies may be delisted from the official register by the end of December 2024 due to their failure to file annual returns. These businesses were granted a one-year extension to comply with the filing requirements, and despite receiving repeated reminders, many have not met the deadline.

Mrs. Jemima Mamaa Oware, the Registrar of Companies, explained that this delisting process is part of the ORC’s effort to ensure that the business register remains accurate and up-to-date. Speaking at a media interaction during a stakeholder engagement, Mrs. Oware emphasized that removing non-compliant businesses from the register would help improve the quality of the ORC’s database. The initiative aims to eliminate inactive businesses and professional organizations that are no longer in operation or fail to meet regulatory standards.

The Registrar warned that businesses at risk of delisting must take immediate action to update their information and file their annual returns before the end of December 2024. Failure to do so will result in their removal from the register, and they will not be able to conduct business with the government or any private entity. Mrs. Oware explained that the delisting would also prevent businesses from using their names for the next 12 years unless they go to court to have them reinstated. She urged all affected businesses to comply promptly to avoid these consequences.

For the business names, more than 500,000 are at risk, while around 5,000 companies could face the same fate. Mrs. Oware clarified that these are businesses to which the ORC had sent reminders earlier in the year. Businesses that have failed to comply will be delisted, and their registration will be rendered inactive, affecting their ability to engage in business activities.

In addition to the delisting process, Mrs. Oware shared details of the ORC’s plans to digitize its services, which is set to be fully implemented by April 2025. The shift toward digital services is intended to streamline the process of business registration, renewal, amendments, and filing of annual returns. A pilot program is currently underway, utilizing the existing manual system, and once completed, the full digital transition will allow businesses to perform all these operations online. This initiative is designed to make business transactions more efficient and accessible to a broader range of businesses.

The new digital system will also assist businesses, including churches, NGOs, audit firms, and legal firms, in obtaining tax identification numbers (TINs) more easily. Additionally, it will improve access to key services by integrating the ORC’s system with several other agencies, including the National Identification Authority (NIA), Ghana Revenue Authority (GRA), Ghana Post, ghana.gov, and the Institute of Chartered Accountants Ghana (ICAG). This integration will reduce human intervention, simplify procedures, and enhance the accuracy and speed of business transactions.

By adopting this digital approach, the ORC aims to modernize its operations and increase the efficiency of the business registration process. The digital shift will not only benefit business owners but will also help the public access essential information about registered companies and professional organizations. Mrs. Oware emphasized that the move towards digitalization would facilitate smoother and faster business transactions, which would, in turn, improve the overall business environment in Ghana.

As part of this modernization strategy, the ORC is working to ensure that its services are more accessible, reducing bureaucratic barriers and providing an easier path for businesses to comply with the law. The implementation of the digital system is expected to improve operational turnaround times and provide businesses with a more reliable way of managing their registration and compliance activities.

The ORC’s initiative to delist businesses that fail to file their annual returns by the end of December is a critical step in ensuring compliance with the Companies Act. Additionally, the shift toward digital services represents a significant leap forward in modernizing the business registration process in Ghana. With these efforts, the ORC aims to create a more efficient and transparent business environment, ultimately benefiting both businesses and the broader economy.