New law coming for re-registration of companies

Thursday, 11 July 2024 02:48 - - {{hitsCtrl.values.hits}}

Move aimed at determining active companies for better policy-making and economic planning
As at end March 2024 there were 199,484 companies registered

The Cabinet of Ministers on Tuesday approved introducing a new law that will facilitate the re-registration of companies incorporated or registered under the Companies Act No. 07 of 2007.

The Cabinet has approved instructing the Legal Draftsman to prepare a Bill based on a concept paper developed for this purpose.

This new law will ensure that the re-registration process is streamlined and that the data on active companies is up-to-date, aiding in more accurate policy-making and economic planning.

As of 31 March, around 199,484 companies are incorporated or registered under the existing Companies Act. However, the Act does not include provisions to determine how many of these companies are actively operating. This lack of clarity has prompted the need for a legislative update.

It intends to address a significant gap in the current legislation regarding the identification of active companies.

The new law will enable the accurate identification of active companies, ensuring better regulatory oversight and more effective governance.

The proposal presented by the Industries Minister highlights the necessity for this legislative change to improve the current system.