The Patent and Companies Registration Agency (PACRA) deregistered 1400 companies at the end of the year 2013.
According to a government gazette number 6252 dated November 15th 2013, the agency deregistered 750 companies in the first quarter and 710 companies in the last quarter.
In an interview with Daily Nation, PACRA public relations officer, Vaida Bunda said the businesses were deregistered for non-compliance with the requirement to remit annual returns.
Bunda said that the companies Act CAP 388 of the laws of Zambia under section 184 and section 189A provided that if a company failed to file annual returns, the company and each officer in default commited an offence and such a company risked being struck off the register and its officers prosecuted.
“In compliance with the law, the agency in 2013, gazetted the names of all the 1400 companies that have been struck off the register as required by law,” Bunda said.
Meanwhile PACRA has this year registered 27,000 companies across the country, the highest number of companies so formed in a single year as compared to 24,000 businesses registered in 2012.
Bunda explained that this year’s bulk of the registered companies were in the micro, small and medium enterprises category. The agency has attributed the increase in the number of this year’s registered companies to the performance of the economy and entrepreneurship desire to take advantage of economic.