The Uganda Registration Services Bureau (URSB) has intensified its crackdown on non-compliant companies, permanently deregistering 10,001 businesses that failed to meet their statutory obligations.
The affected companies were struck off for not filing annual returns for five consecutive years and did not apply for reinstatement within the required timeframe.
Mass Deregistration Following Non-Compliance
In 2023, URSB struck off 297,697 companies from the register due to prolonged non-compliance with the Companies Act of 2012.
Under Regulation 41 of the Companies Regulations, 2023, companies that fail to file annual returns for five consecutive years are considered inactive and face penalties, including fines of up to UGX 4 million per day for operating while struck off.
On February 7th, 2025, URSB issued a formal Notice of Deregistration, permanently removing 10,001 companies from the register.
This means these businesses no longer legally exist, and their names will become available for new registration after 12 months.
Consequences of Deregistration
Deregistration is a severe penalty with far-reaching consequences. A deregistered company loses its legal status and can no longer engage in formal business activities, including securing contracts, accessing loans, or conducting transactions.
“Once a company is deregistered, it ceases to exist as a legal entity,” URSB stated. “Any contracts or business dealings under that name become invalid, and the company name will be open for new registration after one year.”
URSB has warned the public, including government agencies, financial institutions, and businesses, against engaging with deregistered companies.
The full list of affected businesses is here:
Last Chance for Reinstatement
URSB has urged companies that remain struck off to act swiftly to avoid permanent deregistration. Reinstatement applications must be submitted through the Online Business Registration System (OBRS) and require the settlement of outstanding annual returns.
“Companies that remain struck off still have a chance to avoid deregistration,” URSB advised. “Filing outstanding returns and applying for reinstatement through OBRS is the only way to maintain legal standing.”
Strengthening Compliance
URSB reaffirmed its commitment to improving corporate governance and ensuring compliance with statutory regulations.
“We will continue monitoring company records and taking action against non-compliance,” URSB stated. “Companies must take their statutory obligations seriously to avoid legal consequences.”
The mass deregistration serves as a wake-up call for Ugandan businesses to stay compliant and maintain their legal status to avoid disruption of operations.
