Penalty for Companies Failing to File Returns Increased to GH¢1,000 Starting May 1st

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Penalty for Companies Failing to File Returns Increased to GH¢1,000 Starting May 1st

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Penalty for Companies Failing to File Returns Increased to GH¢1,000 Starting May 1st

Penalty for Companies Failing to File Returns Increased to GH¢1,000 Starting May 1st

The Office of the Registrar of Companies (ORC) has announced that effective May 1, 2024, the penalty for companies that fail to file their returns has been increased from GH¢650.00 to GH¢1,000.00.

The ORC explained that the decision was taken to fulfill the law and also serve as a deterrence for non-filing or late filing.

“This directive will apply to Private and Public Companies Limited by Shares and Private and Public Companies Limited by Guarantee (Schools, Churches, Associations, NGOs, CSOs, Foundation etc)”, a statement signed by the Registrar of Companies, Mrs. Jemima Oware said.

She explained that the move is in conformity with Section 126 of the Companies Act, 2019 (Act 992) which requires every company to file their Annual Returns at least once a year or thirteen (13) months after incorporation.

“Kindly note that, filing of an Annual Return is compulsory for every incorporated company in Ghana, whether it is operational or not and it must be attested to by a director and secretary of the company and submitted to the Office of the Registrar of Companies together with audited Financial Statements for the year as indicated in section 126(1) of the Companies Act, 2019 (Act 992”).

The statement stressed that with effect from May 1, 2024, the ORC will be charging an updated penalty of GH₵1,000.00 from GH₵650.00 on companies in default for every month the default continues in accordance with section 126(7) which states that ‘Where a company defaults in complying with this section, the company and every officer of the company that is in default is liable to pay to the Registrar, an administrative penalty of twenty-five (25) penalty units (approximately GH¢300.00) for each day during which the default continues.

The statement clarified that the payment of the GH₵1,000.00 is in no way aimed at crippling companies in Ghana but to serve as a deterrence to recalcitrant companies who are operating in the country without due compliance with the Companies Act, 2019 (Act 992).

“You are hereby reminded that companies whose financial year commences from 1st January to 31st December are to file their Annual Returns in the first quarter of the preceding year. Furthermore, companies whose financial year commences on 1st September to 31st August will have to file their Annual Returns in the last quarter of the preceding year. Annual Returns may also be filed for a period as determined by the directors of the company”.

“Kindly contact our Office on 059-952-5774 (WhatsApp) or 0302-666-081/0302-664-692 or any of our social media handles on Facebook, Twitter, LinkedIn and Instagram @ORC Ghana for answers to any queries”, it ended.

Source: Myjoyonline

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