Non-Compliant Companies face being De-registered by URSB
The Uganda Registration Services Bureau (URSB) urgently announces a major clean-up initiative targeting companies that have failed to file annual returns. Starting August 30, 2024, URSB will begin de registering companies that have not met their filing obligations for over five years. This decisive action is crucial for maintaining an accurate and updated company register.
Companies that have not filed annual returns for five years or more must apply for restoration by August 30, 2024. Failure to do so will result in de registration and their names will be opened to new applicants.
Under Section 134 of the Company Act, companies must file their annual returns within forty-two (42) days after their annual general meeting via the URSB website. Non-compliance will incur fines, and persistent default may lead to de registration.
All companies must file any overdue annual returns immediately. The URSB warns that companies failing to address their outstanding returns within sixty (60) days from this notice will face de registration.
Companies face a fine of Shs500,000 for non-compliance, with potential de registration if the default continues for five years.
Last year, URSB removed 110,822 companies for non-compliance. The number has since risen to 186,000. Many, particularly small and mid-sized businesses, still remain non-compliant despite previous restoration opportunities.
Filing annual returns is vital for validating a company’s legal status and includes key details such as registered office, debentures, and directorship. The Companies Act requires this filing at least once per calendar year.
URSB urges all companies, including dormant ones, to file returns within a 12-month grace period and notify the registrar upon resuming activity. This clean-up aims to ensure only active, compliant businesses remain on the register.
Immediate compliance is necessary to avoid de registration and fines. Act now to secure your company’s status and stay in good standing with URSB.