The Uganda Registration Services Bureau (URSB) has launched a major crackdown on non-compliant businesses, announcing plans to permanently deregister at least 10,001 companies. The move, according to URSB, is aimed at maintaining the integrity of the business register and promoting transparency in the corporate sector.
Speaking on the matter, Mr Denise Nabende, URSB’s Communications and Public Affairs Officer emphasized that deregistration is a necessary step to ensure businesses comply with statutory requirements.
“URSB will continue to take measures to enforce compliance, and we urge all businesses to prioritize their registration and filing obligations to avoid being struck off the register,” he stated.
URSB had earlier, on February 7, issued a notice of deregistration, declaring at least 1,000 companies legally non-existent. Now, the bureau has confirmed that the list has expanded, with more companies set to be removed permanently.
Once a company is deregistered, it ceases to exist legally, and after 12 months, its name becomes available for registration by new entities. URSB has advised companies that have been struck off to apply for reinstatement immediately to avoid permanent deregistration.
Reinstatement applications must be submitted via the Online Business Registration System (OBRS) and require the completion of outstanding filings, particularly annual returns.
URSB has undertaken similar actions before. In 2022, it deregistered at least 297,697 companies for failing to update their records and file annual returns for at least five years.
According to Mr. Nabende, some companies responded and filed the necessary documents for reinstatement, but many failed to comply, leading to their deregistration.
Despite these crackdowns, business registration in Uganda has been growing. The latest URSB Annual Report (June 2024) shows that new company registrations increased by 19%, rising from 23,789 in 2023 to 28,414 in 2024. Additionally, compliance efforts have improved, with at least 95,023 companies filing their annual returns, a 111% increase over the previous year.
URSB has warned that anyone found operating a deregistered company faces hefty fines of up to UGX 4 million, as stipulated under Regulation 41 of the Companies Regulations, 2023.
Furthermore, both public and private entities have been cautioned against engaging in transactions with struck-off or deregistered companies, as such dealings could lead to legal and financial risks.
URSB has urged all companies to comply with statutory requirements to avoid deregistration. Businesses that have already been struck off the register still have a chance to apply for reinstatement, but delayed action may result in permanent loss of their company status.
Companies are advised to act promptly to ensure compliance and protect their legal standing in Uganda’s corporate sector.
List of deregistered companies: