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URSB to de-register 10,000 companies
URSB executive director Mercy Kainobwisho. De-registering non-compliant companies, URSB says, is a necessary step to clean up its register. Photo / File
What you need to know:
- Uganda Registration Service Bureau says de-registering non-compliant companies is necessary to maintain the integrity of the business register and promote transparency
Uganda Registration Service Bureau (URSB) has, in a major crackdown on inactive businesses, indicated that it will permanently de-register at least 10,001 companies.
Mr Denise Nabende, the URSB communications and public affairs officer, yesterday told Monitor that the de-registration, which follows a February 7 notice of de-registration in which at least 1,000 companies were declared to be legally non-existent, “was a necessary step to maintain the integrity of the business register and promote transparency and accountability in the corporate sector".
"URSB will continue to take measures to ensure compliance with statutory requirements, and we urge all businesses to prioritise their registration and filing obligations to avoid being struck off the register," he said, noting that more companies would soon be published in a move that will at least see 10,001 companies permanently removed from the register.
The move, he further noted, would also make available names of de-registered companies for redistribution after 12 months because they will be considered as non-existent.
In 2022, URSB struck off from its register at least 297,697 companies for failure to update their data and file annual returns for at least five years.
The affected companies had been expected to seek reinstatement through filing required documents or risk de-registration.
Whereas several companies responded; however, Mr Nabende noted that many companies did not respond, thereby necessitating de-registration.
URSB has, in the last five years, seen an increase in business registrations, with the number of newly registered companies rising by double digits annually.
According to the URSB annual report for the 12 months to June 2024, new company registrations rose by 19 percent from 23,789 in the 12 months to June 2023 to 28,414.
URSB has also indicated that persons found guilty of operating a company that had been de-registered will be subjected to hefty fines of up to Shs4m in fulfilment of penalties prescribed under the URSB Regulation 41 of the Companies Regulations, 2023.
URSB also cautioned both private and public entities against engaging in transactions with companies that have either been struck-off or de-registered from its register.
The URBS report also indicates that there has been a dramatic improvement in the number of companies filing annual returns due to increased vigilance.
For instance, the report notes that at least 95,023 companies filed their annual returns, which represented an improvement of 111 percent in the 12 months to June 2024.
