The Corporate Regulatory Authority, CRA has shut down 83 companies in June this year. This was mainly due to their failure to submit audit reports, financial statements, and annual returns. To enhance corporate compliance, starting this September, the authority has certified 10 corporate filing agents. These agents will support businesses in submitting their reports in accordance with the Companies Act of Bhutan.
According to the Companies Act of Bhutan 2016, a company is required to file audit reports, financial statements, and annual returns every year.
Currently, nearly 700 companies are registered with the Corporate Regulatory Authority. However, many have repeatedly failed to submit these reports, despite warnings. As a result, the authority has removed them from the list of legally recognised businesses.
The ten Corporate Filing Agents certified today are expected to address this issue.
They will help companies meet their filing obligations, stay legally compliant, and avoid suspension of business licences.
“With an increase in the number of companies, many owners are failing to comply with regulations and submit required reports. Just last month, we struck off several companies as defunct, and we hope others at risk will take timely action to avoid the same fate,” said Karma Yeshi, the Registrar of Companies.
The agents will also assist with starting a company, changing company details, and other tasks as instructed by the authority.
Starting next month, businesses must engage these agents to carry out any company-related processes.
The authority says that companies must pay for the services provided by the agents.
“In the past, many companies were not aware of the statutory filings and the requirements of company laws and regulations. That is why there were a lot of defunct companies, failing to comply with the Companies Act of Bhutan. Now that we are certified, we are in a better position to provide reliable legal and regulatory services related to corporate business,” said Tika Ram Basnet, a certified Corporate Filing Agent.
The certified agents underwent a three-day training programme, which covered corporate filing requirements, governance best practices, and system-based regulatory processes.
Kinley Bidha
Edited by Sangay Chezom
