• Sunday, 27 October 2024
Companies ordered to submit beneficial owners register

Companies ordered to submit beneficial owners register

Companies and Limited Liability Partnerships (LLPs) have been directed to submit a register of beneficial owners to the Business Registration Service.

In a notice, the Registrar of Companies, Joyce Koech, indicated that Private Limited Companies must file their registers by November 30, 2024. However, LLPs will be notified of their submission deadlines at a later date.

“All companies and LLPs must adhere to the compliance requirements of the Companies Act and Limited Liability Partnership Act. Effectively, all companies and LLPs are required to prepare and maintain a register of beneficial owners,” Koech stated.

Entities that fail to submit the registers will face penalties, including a Sh500,000 fine, and an additional Sh50,000 fine for each day the failure continues.

Non-compliant entities may also be struck off the register under Section 894 of the Companies Act and 33A of the Limited Liability Partnerships Act.

Koech further warned that failure to file amendments to the beneficial ownership register within 14 days of any changes will attract a fine of Sh2,000 for the company and each officer in default, with an additional penalty of Sh100 for every day the default persists.

“In line with Anti-Money Laundering, Combating Terrorism Financing, and Combating Proliferation Financing, the Service is mandated to collect and maintain accurate, adequate, and up-to-date basic and beneficial ownership information of Companies and Limited Liability Partnerships,” Koech added.

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