More than 2600 local companies will no longer be recognized as legal business entities in Rwanda for failure to re-register with Rwanda Development Board (RDB), however the companies can only escape the axe if they re-register within the next two months reports New Times.
The 2641 companies are required to check with the office of the Registrar General of Companies at RDB or risk loosing their license to operate in the country.
According to the Registrar General of Companies at RDB, Louise Kanyonga, a list that was published in the media was a notice of the intention to remove the companies if no objections regarding the removal are received within the two month period. Kanyoga further said that the companied are facing deregistration because of the requirement by the company law of 2009 to re-register. According to her, the companies must be inactive if they have not complied with the requirement.
“This removal, is therefore, meant to clean up the registry of companies. It is important to note that the Office of the Registrar General (ORG) has previously conducted communication campaigns and published notices calling on companies to re-register and a very large number of companies re-registered following these different communications,” she said in an interview.
One of the major problems with the deregistration is that the companies will no longer be able to get tenders to conduct business since they will no longer be legal entities.
A good number of the companies facing removal from the register are Small and Medium Enterprises (SMES) which are involved in almost all business areas in the country.
The government will be able to keep track of companies that are in actual operation and maintain accurate data of the number of businesses operating in the country.
