Ghana – Enforcement of Company Obligations
Effective Monday 1st August 2016 the Ghanaian Registrar of Companies will enforce financial penalties for any local entity that has not filed Annual Returns or renewed their company partner registration. These penalties will apply until 31st December 2016 when any companies that are not up to date will be removed from the Registry.
Companies registered with the Registrar General’s Department before October 2011 are also now required to re-register with the Registry by the end of this year (31st December 2016) or risk being deleted from the records thereafter.
Background
All companies are required by the Companies Act to file their first Annual Return within eighteen months of incorporation and once every year thereafter. The Incorporated Private Partnership Act also requires that company partners submit a statement renewing the registration of their partnership once every year. These requirements are now being enforced more vigorously.
The RGD has also requested all companies incorporated and registered in Ghana prior to October 2011 to re-register as part of an ongoing e-Government Project which seeks to network the RGD and the Ghana Revenue Authority for the purposes of operational efficiency and effectiveness. This process usually takes three weeks.
Applicable Penalties
Fines of up to 300.00 Ghanaian Cedi (approximately $76 USD) will apply per day that the company is not current with registration or annual return reporting, starting 1st August 2016, and the entity name will be erased as of the beginning 1st January 2017 if no action is taken.
Action Items
- All businesses registered in Ghana should ensure that their company registration is complete and Annual Returns have been filed up to 2016 prior or as soon after 1st August 2016 as possible.
- Any company partners should make certain that the partnership registration has been renewed.
- Businesses that were registered before October 2011, should ensure that their re-registration process is completed prior to 31st December 2016.