ORC to increase penalty fees for late filing of annual returns from GH¢650 to GH¢1,000

The Office of the Registrar of Companies (ORC) has announced that starting from May 1, 2024, an increased penalty will be applied to companies that are in default.

"In accordance with Section 126 of the Companies Act, 2019 (Act 992), which mandates that every company file their Annual Returns at least once a year or within thirteen (13) months after incorporation," a statement from the ORC read.

It is required that the annual return be certified by a director and secretary of the company and submitted to the Office of the Registrar of Companies along with the audited financial statements for the year, as stipulated in section 126(1) of the Companies Act, 2019 (Act 992).

"Consequently, effective from May 1, 2024, the ORC will impose an updated penalty of GH¢1,000.00, up from GH¢650.00, on companies in default for each month the default persists, in line with section 126(7)," the ORC declares.

However, the ORC clarifies that the increase in penalty fees is not meant to financially burden companies but rather to serve as a deterrent to those companies that persistently operate without adhering to the Companies Act, 2019 (Act 992).

"Companies with a financial year running from January 1 to December 31 are required to file their Annual Returns in the first quarter of the subsequent year," it stated.

"Additionally, companies with a financial year beginning on September 1 and ending on August 31 must file their Annual Returns in the last quarter of the preceding year.