The Uganda Registration Service Bureau (URSB) has de-registered 186,000 companies for non-compliance with annual filing requirements for five consecutive years under the Companies Act of 2012 (Act1).
URSB Registrar General, Mercy Kainobwisho based her judgment on Section 134(5) of the Companies Act 1 of 2012 where on 20th March2023 URSB published a notice requiring all companies to file their annual returns.
Companies that had not filed annual returns for the previous five years were directed to produce a declaration of solvency and explain why they should not be removed from the register.
“In accordance with Section 134(6) of the Companies Act 1 of 2012, 186,000 companies have been struck off the register,” Kainobwisho said.
Section 134 (1) of the Companies Act 2012 requires all URBS-registered companies to file annual returns within forty-two days of the year’s annual general meeting.
Provision 134(2) of the Companies Act specifies that if a company fails to comply with this provision, the firm and every officer of the company who is in default are liable to a default fine of twenty-five currency points, which is approximately sh500, 000.
The Companies Act further states in Section 134(4) that when a company becomes dormant, the directors must notify the registrar within fifteen working days of the date of the resolution for dormancy.
Section 134 (1) of the Companies Act 2012 requires all URBS-registered companies to file annual returns within forty-two days of the year’s annual general meeting.
Provision 134(2) of the Companies Act specifies that if a company fails to comply with this provision, the firm and every officer of the company who is in default are liable to a default fine of twenty-five currency points, which is approximately Sh500, 000.
The Companies Act further states in Section 134(4) that when a company becomes dormant, the directors must notify the registrar within fifteen working days of the date of the resolution for dormancy.
Kainobwisho further said that URSB will continue to review the records and identify other non-compliant companies in action.