URSB to deregister companies that fail to comply with filing of annual returns

In a decisive move to uphold regulatory compliance and ensure accountability in the business sector, the Uganda Registration Services Bureau (URSB) has today, issued a critical notice to companies that have failed to file annual returns for over five years. The notice follows earlier notices issued on 20^th July, 2023, 14^th August, 2023 and 30^th August 2023. This proactive measure aims to enforce statutory obligations, promote transparency, and maintain the integrity of the corporate registry by having updated information on the register.

Pursuant to Section 134(6) of the Companies Act, 2012, the Registrar of Companies struck some companies off the register for failure to file annual returns for a period of five years. The list of companies struck off the register can be accessed on the URSB website.

According to the notices, companies desirous of being restored onto the register are required to apply to the Registrar of Companies by 30^th August, 2024. Applications for restoration are made through the Online Business Registration System (OBRS) accessible at http://obrs.ursb.go.ug

The notice issued by URSB today serves as a final call to non-compliant companies to rectify their filing status and comply with regulatory requirements to avoid deregistration.

Companies that receive this notice are strongly advised to take immediate action to rectify their non-compliance, submit outstanding annual returns, and ensure ongoing compliance with regulatory obligations. By doing so, companies can avoid the consequences of deregistration and demonstrate their commitment to good corporate governance, transparency, and regulatory compliance in line with the laws of Uganda.

Companies that fail to apply for restoration by 30^th August, 2024 will be deregistered. Deregistration of a company has many legal implications, including the loss of corporate status, inability to conduct business, loss of the brand or name which will be made available for use by other interested applicants and potential liabilities for directors and shareholders.

By notifying companies of the impending deregistration process, URSB is rallying business owners about the importance of timely submission of annual returns as mandated by the law. URSB will be able to distinguish active companies from inactive companies and maintain a credible register. Other interested persons will be able to use names of companies that are inactive and deregistered.