The government is swiftly pushing new legislative reforms to overhaul the corporate registration and oversight system—part of a broader push to modernise corporate governance and align with global anti-financial crime norms.
Comprehensive Re-Registration to Renew Records
A centerpiece of the reform is a plan to re-register over 200,000 active companies, mandating that all must update and verify their information with the Registrar. This move is designed to bring months- or years-old company data up to date, enabling authorities to maintain more accurate and reliable corporate records.
New Beneficial Ownership Registry to Boost Disclosure
Another pillar of the reform agenda is the creation of a Beneficial Ownership Register. Under the proposed Companies (Amendment) Bill, businesses will be required to collect and disclose comprehensive personal details for anyone owning or controlling at least 10 percent of a company.
This includes full name, birth details, nationality, addresses, and identification numbers. Companies must keep this register at their registered office for at least 10 years and submit updates within 14 working days of any change to the Registrar of Companies
Failure to complyor knowingly supplying false information—could trigger serious penalties, including fines and up to 10 years’ imprisonment
Select informationsuch as names and extent of ownershipwill be accessible to the public upon request, while authorities like the Attorney-General, Financial Intelligence Unit, customs, revenue authorities, and others can access full details
While these reforms mark an alignment with Financial Action Task Force (FATF) standards and are part of meeting IMF benchmarks, non-governmental organisations have flagged concerns over exemptions.
Specifically, offshore and overseas companies may be exempted from these disclosure rules raising fears that such loopholes could undermine transparency and accountability
.Offshore Registrations within Port City Soar
In contrast, the Port City offshore registration system remains fully operational and efficient amid ongoing digital hurdles at the national company registry. Governed under the Port City Economic Commission Act No. 11 of 2021, its process operates independently of the troubled eROC system
Companies can obtain “Authorised Person” (AP) status necessary for operating offshore in the Port City within just three working days, provided documentation is in order
As of August 2024, over 100 companies spanning IT, finance, shipping, healthcare, tourism, real estate, and professional services had been registered as APs; 22 of those have also earned Business of Strategic Importance (BSI) designation, securing massive tax and investment incentives
Civil Society Calls for Digital and Legislative Overhaul
Public-interest groups are urging authorities to address long-standing weaknesses in national digital infrastructure calling for a fully functional e-registry system (eROC), swift passage of the new legislation, and full implementation of the beneficial ownership regime without exemptions. They argue these reforms are vital to restoring trust and enhancing resilience within the corporate governance framework.
