The time limit for businesses to send the names of shareholders or controlling bodies to the Kenyan government has been extended by six months. The country’s Business Registration Service (BRS) said that it had received more applications from those keen to comply.
“We had previously issued a deadline of January 31, 2021. Having taken note of the progress made in filing these registers and in the spirit of encouraging compliance with the Companies Act, BRS has in consultation with stakeholders granted a final grace period of six months ending July 31, 2021,” said BRS Director General Kenneth Gathuma in a statement.
“Failure to comply with this requirement after July 31 makes it an offence to the firm and every officer of the company who is in default. Such an officer will be liable to a fine upon conviction.”
Read also: Which Investors Invest In African Blockchain And Crypto Startups? Here Is A List.
Here Is What You Need To Know
- At the end of this month, the deadline for individuals to file e-register beneficial ownership data at the Companies Registry in accordance with the Companies Act, 2015, was set.
- The goal of the drive to implement the law is to increase transparency in company shareholding as the State cracks down on illegal cash flows such as money laundering and funding terrorism.
- Failure to comply can lead to a fine for the company and officials of up to Sh500,000 ($4.5k).
- BRS said it had initially operationalized the e-register for private limited companies and would do the same for other companies’ e-registers, but warned the public of the drawbacks.
“We advise the public to be cautious of persons soliciting money to facilitate them in complying with this requirement.”
- BRS said it had initially operationalized the e-register for private limited companies and would do the same for other companies’ e-registers, but warned the public of the drawbacks.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer
Kenya companies Kenya companies