THE Government could rake in millions of dollars after the enactment of a new law that requires all registered companies in Zimbabwe to re-register.
All existing companies which were registered before February 22, 2020, are required to re-register with the Registrar of Companies within a period of 12 months according to the new Companies and Other Business Act [Chapter 24:31].
The new Act which came into effect in the first quarter of 2020 gave companies up to March 2021 to complete the new registration process or risk being struck off Companies Register.
Deputy finance minister, Clemence Chiduwa, confirmed the development but referred further questions to the justice and industry ministries.
“Yes, I can confirm that that the new Companies Act requires all companies to re-register, but I cannot comment on that because the registration of companies falls under the ministry of justice and their operations fall under the industry ministry. So those are the rightful ministries to comment on that matter,” Chiduwa told NewZimbabwe.com.
However, Justice Minister Ziyambi Ziyambi could not be reached for comment as his mobile phone went unanswered while efforts to get a comment from Industry Minister Sekai Nzenza were also fruitless as her mobile was not reachable.
According to the new Companies Act, the latest regulations seek to curb shortcomings in the manual registration process through the introduction of electronic registration.
The re-registration exercise is said to be an administrative process aimed at establishing a new and updated register of companies so that inactive companies do not appear on the updated companies register.