Companies Office ramps up mobile outreach

The Companies Office of Jamaica invests $2.2 million annually in its mobile service to chase delinquents, and as outreach to business operators not au fait with their legal filing obligations.

The 10-year-old service is paying off in monetary returns, but the Companies Office also credits the unit with accelerating compliance among local companies.

"We encourage companies to file when we visit, because the next step is to litigate or to remove them from the roll. After being served a notice, they have 14 days to file," said compliance supervisor Yolande Rowe-Fender.

The mobile arm is self-funding, but while the aim is to break even, the six trucks operated by the Companies Office brought in $8.8 million last year - four times the cost of service delivery - from the fees collected for late filings and other fee-based services.

Between April and November 2010, mobile revenue reached $7.95 million.

Rowe-Fender said collections for the full year ending March 2011 were likely to exceed the prior period.

The budgeted amount for the service includes mileage for staff, location costs, and hotel accommodation. Salaries are not included.

Temporary offices are set up in each location.

The Companies Office has more than 63,374 companies on its roll, but estimated in September that 25,734, or 40 per cent, were delinquent in their filings.

Delinquents targeted

"All delinquent companies and businesses operating in the areas where the mobile service is being conducted are targeted by the field officer," said Heather Sutherland, manager of the compliance unit at the Companies Office.

"Our aim is to have 100 per cent compliance among these companies."

The mobile team facilitates business- name registration, renewal of business-name registrations, and filing of all company documents.

The Companies Office general fees for various services range from $3,000 to $5,000.

Penalty fees range from $100 per day to $10,000 for different breaches.

The mobile team visits all parishes. The number of staff assigned varies depending on the delinquency rate in the area.

The compliance unit with its complement of seven field officers has responsibility for mobile activities.

Field officers first "saturate the area with information and distribution of notices where the company or business is delinquent and then return to the area for a period for collection of returns and fees", said Sutherland.

National presence

The Companies Office has only one physical location:its headquarters and operating office in New Kingston. The mobile unit gives the agency a national presence, even without an office network, Sutherland said, though she acknowledged that it was still a small operation relative to the need.

"We do not at this time possess the manpower to offer the service on a larger scale," she said.

"We, however, facilitate filings, remaining in a location for one to two days to ensure that persons are able to take advantage of the facility."

Local companies may also make appointments with examiners to assist them understanding complicated issues about the documents filed.

austanny@yahoo.com