Over 100,000 companies de-registered over non-compliance

The registrar of companies, Mercy Kainobwisho, stated on the URSB official website that she based her judgement on Section 134(5) of the Companies Act 2012, where the Bureau initially issued a notice on March 20, 2023, asking all firms to file their annual returns.

Companies that had not filed annual returns for the previous five years were obliged to produce a declaration of solvency and explain why they should not be removed from the register.

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.