Damion Mitchell, Staff ReporterTHERE WAS a rush at the Office of the Registrar of Companies on Grenada Way in New Kingston yesterday, as business operators scurried to beat what would have been today's deadline to rectify the registration of their entities without penalty.
However, last night Commerce Minister Phillip Paulwell said the amnesty would be extended to January 28, 2005, while the implementation of the New Companies Act has been deferred to February 1 from January 1.
The Government had implemented the amnesty on November 18 for business operators to rectify the registration of their companies before the new Companies Act take effect. The new Companies Act revamps the regulations for the formation and operation of companies.
According to Shellie Leon, deputy chief executive officer at the Registrar of Companies, within the last two weeks, the agency processed 110 per cent more documents than it usually does.
REMOVING NAMES OF COMPANIES
This has pushed revenues to some $17 million since November 18, with the majority of the transactions relating to the registration of companies. Over the period, an average of 696 documents are processed each day up from 200.
Miss Leon said several entrepreneurs have also been removing the names of their companies from the register since they are no longer functioning and, according to her, as part of the amnesty, they have been saving thousands of dollars.
"The policy was that you would have to update your records before they are removed, now we have relaxed that position so we have sent for all of these persons who are now coming in to clean up the state of their records."
Miss Leon said this would provide for a more accurate account of the number of companies currently in operation and at the same time, ensure that resources are not expended in attempting to have them file outstanding documents.
At present there are some 65,000 registered companies, but approximately 43,000 have not filed annual returns for the last five years. Meanwhile, the Office of the Registrar of Companies estimates that only about 25,000 companies are active.
LOSING MILLIONS
Miss Leon further said only about 7,000 companies are currently filing annual returns which meant the agency was losing more than $54 million each year in revenues for annual returns alone.
The Registrar's deputy chief executive officer said there were considerations for officers from the agency to routinely visit Mandeville, Manchester and Montego Bay, St. James beginning next year in order to be more accessible to business operators requiring their services.
Yesterday, the Registrar had to re-assign several of its officers to assist customers filing returns plus provide additional cashiers.
