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15,800 companies in breach, 1,000 to be struck off roll - Investment clubs popular among 4,000 new additions
published: Friday | November 9, 2007
Sabrina N. Gordon, Business Reporter
The Companies Office of Jamaica, New Kingston. - File
The Companies Office of Jamaica (COJ) has identified 1,000 small and medium companies for removal from the roll of registered businesses, but that figure is a fraction of the near 16,000 that are non-compliant on their returns.
"We intend to remove companies that appear not to be carrying on business or in operation," said Shellie Leon, COJ deputy chief executive officer.
The indicator of an inactive business, she said, is failure to file returns, as mandated under the Companies Act.
But the Companies Office's own figures indicate that just about 70 per cent or 15,832 of the 22,618 businesses on the register are in breach.
The compliance rate stands at 30 per cent, with little information on why the businesses have fallen into default, nor whether they were specific to any particular sector.
Leon said the data was not ordered to provide that level of detail.
The office, however, does not strike off businesses as a first resort, but offers room for operators to regularise.
Other required filings on the appointments of company secretary and directors are at 45 per cent and 50 per cent compliance, respectively, while that for registering office addresses is 55 per cent.
COJ has stepped up its compliance drive over the past month to regularise breaches, some of which have dated back to 1999.
"We try to encourage voluntary compliance by conducting public education and publicity drives including our mobile unit in which we travel throughout the island and assist persons in the completion of documents which may be filed on spot," said Leon.
Even bigger job
But, with the coming into force of legistration September 3, for the mandatory registration of business names, the office has an even bigger job - compiling a register for trade names.
KFC, for example, would be considered a trade name, according to Leon. The franchise is owned by registered company Restaurants of Jamaica Limited.
Leon was unable to give a precise reading on the number of trade names to be added to the roll, saying Jamaica's large informal sector makes it difficult to estimate.
However, the COJ believes it could be as many as 100 times the number of business names registered, which would put the total at more than 200,000.
Trade names are mostly registered as limited liability companies, and that includes franchises, Leon said.
For the period April to September 2007, the office registered just under 4,000 new entities - including 1,044 new companies, with 46 being foreign owned; and 2,896 business names, 938 of which were renewals.
The most popular additions were investment clubs, wholesalers and personal care services, but they also span real estate, computer sales and services, construction, general merchandise, telecommunications, electronics and consultancy services.
Leon said the number of overseas registrations should not be used as a proxy measure of foreign investments, saying investors sometimes choose to register local companies for reasons other than trading.
It was further pointed out that small and medium-size business operators are the ones that usually opt to register business names, while larger businesses tend to register as corporate bodies.
For the past three years, the number of small and medium-size businesses have been on the rise, now standing at 22,618.
Last year's additions to the roll topped 4,900.
Sole traders
"For the past five years, we are finding that more persons are setting up as sole traders, which are businesses operated by one person rather than partnerships," said COJ business registration manager Camille Neil, quoted in a JIS news report.
The types of businesses and companies being added span sectors such as real estate, computer sales and services, investment clubs, construction, general merchandise, telecommunications, electronics and consultancy services.
The COJ's public education campaign has already covered six of 14 parishes - Portland, St. Mary, St. Ann, Trelawny, St. Catherine and St. James - and the office is working with a year end target to complete the other eight.
Where a company does not comply voluntarily, COJ then pursues litigation in the Supreme Court to apply appropriate penalties.
Company secretaries and directors, for example, can be disqualified to act in such positions for a period of five years.
Companies can be fined $10,000 for each annual return outstanding, in addition to a late filing fee of $1,000.
The non-registration of a business is now also an offence punishable by a fine of up to $15,000 or imprison-ment of up to three months.
Registration costs $2,500.
sabrinagordon@gleanerjm.com
published: Friday | November 9, 2007
Sabrina N. Gordon, Business Reporter
The Companies Office of Jamaica, New Kingston. - File
The Companies Office of Jamaica (COJ) has identified 1,000 small and medium companies for removal from the roll of registered businesses, but that figure is a fraction of the near 16,000 that are non-compliant on their returns.
"We intend to remove companies that appear not to be carrying on business or in operation," said Shellie Leon, COJ deputy chief executive officer.
The indicator of an inactive business, she said, is failure to file returns, as mandated under the Companies Act.
But the Companies Office's own figures indicate that just about 70 per cent or 15,832 of the 22,618 businesses on the register are in breach.
The compliance rate stands at 30 per cent, with little information on why the businesses have fallen into default, nor whether they were specific to any particular sector.
Leon said the data was not ordered to provide that level of detail.
The office, however, does not strike off businesses as a first resort, but offers room for operators to regularise.
Other required filings on the appointments of company secretary and directors are at 45 per cent and 50 per cent compliance, respectively, while that for registering office addresses is 55 per cent.
COJ has stepped up its compliance drive over the past month to regularise breaches, some of which have dated back to 1999.
"We try to encourage voluntary compliance by conducting public education and publicity drives including our mobile unit in which we travel throughout the island and assist persons in the completion of documents which may be filed on spot," said Leon.
Even bigger job
But, with the coming into force of legistration September 3, for the mandatory registration of business names, the office has an even bigger job - compiling a register for trade names.
KFC, for example, would be considered a trade name, according to Leon. The franchise is owned by registered company Restaurants of Jamaica Limited.
Leon was unable to give a precise reading on the number of trade names to be added to the roll, saying Jamaica's large informal sector makes it difficult to estimate.
However, the COJ believes it could be as many as 100 times the number of business names registered, which would put the total at more than 200,000.
Trade names are mostly registered as limited liability companies, and that includes franchises, Leon said.
For the period April to September 2007, the office registered just under 4,000 new entities - including 1,044 new companies, with 46 being foreign owned; and 2,896 business names, 938 of which were renewals.
The most popular additions were investment clubs, wholesalers and personal care services, but they also span real estate, computer sales and services, construction, general merchandise, telecommunications, electronics and consultancy services.
Leon said the number of overseas registrations should not be used as a proxy measure of foreign investments, saying investors sometimes choose to register local companies for reasons other than trading.
It was further pointed out that small and medium-size business operators are the ones that usually opt to register business names, while larger businesses tend to register as corporate bodies.
For the past three years, the number of small and medium-size businesses have been on the rise, now standing at 22,618.
Last year's additions to the roll topped 4,900.
Sole traders
"For the past five years, we are finding that more persons are setting up as sole traders, which are businesses operated by one person rather than partnerships," said COJ business registration manager Camille Neil, quoted in a JIS news report.
The types of businesses and companies being added span sectors such as real estate, computer sales and services, investment clubs, construction, general merchandise, telecommunications, electronics and consultancy services.
The COJ's public education campaign has already covered six of 14 parishes - Portland, St. Mary, St. Ann, Trelawny, St. Catherine and St. James - and the office is working with a year end target to complete the other eight.
Where a company does not comply voluntarily, COJ then pursues litigation in the Supreme Court to apply appropriate penalties.
Company secretaries and directors, for example, can be disqualified to act in such positions for a period of five years.
Companies can be fined $10,000 for each annual return outstanding, in addition to a late filing fee of $1,000.
The non-registration of a business is now also an offence punishable by a fine of up to $15,000 or imprison-ment of up to three months.
Registration costs $2,500.
sabrinagordon@gleanerjm.com